With Reference to the Fourteenth Finance Commission, which of the following statements is/are correct?
- It has increased the share of States in the central divisible pool from 32 per cent to 42 per cent
- It has made recommendations concerning sector-specific grants
Detailed Explanation:
✅ Statement 1 – Correct: The 14th Finance Commission (chaired by Dr. Y.V. Reddy) increased the share of States in the central divisible pool from 32% to 42%, a historic jump aimed at enhancing fiscal federalism.
❌ Statement 2 – Incorrect: The Commission moved away from recommending sector-specific grants to preserve state fiscal autonomy. It provided only grants for local bodies and disaster management, avoiding tied grants that restrict states' spending flexibility.
Question 2 of 3 Finance Commission
Practice PYQ questions from this topic across all years
Which of the following statements with regard to recommendations of the 15th Finance...
Which of the following is /are among the noticeable features of the recommendations o...