UPSC CSE Prelims
Question 7
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 percent to 42 percent.
- It has made recommendations concerning sector-specific grants.
Select the correct answer using the code given below.
View correct answer and explanation
Correct answer: A
Correct Option: A
Explanation: The Fourteenth Finance Commission recommended increasing states’ share of the divisible pool of central taxes to 42%, but did not recommend sector-specific grants of the kind mentioned.
Statement/Pair-wise Analysis:
Statement/Item 1: Correct - The share of states in divisible central taxes rose from 32% to 42% for 2015–20.
Statement/Item 2: Incorrect - It largely avoided sector-specific grants, focusing on tax devolution and certain local-body and disaster-management grants.
Option-wise Analysis:
A: Correct - includes all and only the correct items.
B: Incorrect - includes incorrect statement/item 2; omits correct statement/item 1.
C: Incorrect - includes incorrect statement/item 2.
D: Incorrect - omits correct statement/item 1.