Fourteenth Finance Commission Recommendations
Question
With reference to the Fourteenth Finance Commission, which of the following statements is/are correct?
Select the correct answer using the code given below.
- 1.
It has increased the share of States in the central divisible pool from 32 percent to 42 percent.
- 2.
It has made recommendations concerning sector-specific grants.
Options
1 only
2 only
Both 1 and 2
Neither 1 nor 2
Explanation
The Fourteenth Finance Commission (2015-2020), headed by Y.V. Reddy, made two significant recommendations: (1) It increased the share of States in the central divisible pool from 32% to 42%, which was a substantial increase aimed at decentralizing fiscal resources. (2) It also made sector-specific grant recommendations for various developmental priorities. Both statements are factually correct based on the commission's actual recommendations. > XIV FC increased devolution to States from 32% to 42%, strengthening federalism and state autonomy. Answer: (c).
Question details
Year
2015
Paper
GS Paper 1
Question
Q2
Subject
Polity
Sub-topic
Finance Commission
Type
Statement-based
Difficulty
Medium
Nature
Static
Source hint
Current Affairs 2014-2015
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