With reference to the Fourteenth Finance Commi- ssion, 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 code given below.
✓ Correct answer: a) 1 only
ExplanationThe Fourteen Finance Commission was consti-tuted (FFC) by the President on January 2, 2013 under chairmanship of Dr. Y. V. Reddy to give recommendations on specified aspects of Centre-State fiscal relations during 2015-2020. The Commission submitted its report to the President on December 15, 2014. Statement 1 is correct: The Fourteenth Finance Commission has radically enhanced the share of the states in the central divis- ible pool from the current 32% to 42% which is the biggest ever increase in vertical tax devolution.Statement 2 is incorrect : Unlike the thirteenth Finance Com- mission, the Fourteenth Finance Commission did not make any recommendation concerning sector specific-grants.Recently, The Sixteenth Finance Commission of India was es- tablished under Article 280 of the Constitution to recommend the distribution of tax revenues between the Union and the States for the five-year period commencing April 1, 2026. Terms of Reference for the Sixteenth Finance Commission: The 16th Finance Commission shall make recommendations as to the following matters, namely : i. The distr
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