GyanGramWith Reference to the Fourteenth Finance Commission, which of the following statements is/are correct? 1. It…
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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 per cent to 42 per cent
2. It has made recommendations concerning sector-specific grants
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• Correct Answer: A
• 14th Finance Commission (2015) raised states' share in central divisible pool from 32% to 42%, enhancing fiscal autonomy.
• It avoided sector-specific grants, preferring untied tax devolution; only local body, disaster, and post-devolution deficit grants were recommended.
• B, C, D are wrong as Statement 2 is incorrect.
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