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 sectorspecific grants. 

Select the correct answer using the code given below. 

(a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

Answer 1

(a) Union Government accepted the 14th Finance Commission's recommendation to devolve an unprecedented 42 per cent of the divisible pool to states during 20015-16 to 2019-20, against 32 per cent suggested by the previous commission.