With Reference to the Fourteenth Finance Commission, which of the following statements is/are correct? 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. Select the correct answer using the codes given below.

Question

With Reference to the Fourteenth Finance Commission, which of the following statements is/are correct? 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.  Select the correct answer using the codes given below.

CollectorBabu · Accepted Answer

Correct Answer: 1 only. The idea of 14 th Finance Commission is that every state should involve in complete priority of tax revenues that appears around 46% against 33% which serves as high change in respect to devolution of percentage. Further, it is seen that total devolutions in financial year 2014-15 from relevant states increases to 48% in financial year 2015-16. With this, it seems that only statement 1 is correct while statement 2 is incorrect as it is not relevance to any recommendation for grant. Since statement 2 is incorrect, it eliminates option B, C and D, so option A is correct.

Contact Information

Services