Question

Which of the following statements is correct about the Fourteenth Finance Commission?

• A. The Commission was chaired by Dr. C. Rangarajan.
• B. The Commission recommended achieving 90 percent metering of electricity by the end of the year 2012.
• C. The Commission recommended an increase in the share of tax devolution to states to 42 percent of the divisible pool.
• D. The Commission was mandated to make recommendations for the period 2010–2015.

Hint:

Finance Commissions: remember the big jump—\textbf{14th FC} $\Rightarrow$ tax devolution \textbf{42%} (2015–2020); \textbf{Y. V. Reddy} as chair.

Answer 1

The Correct Option is C

Step 1: Core recommendation of the 14\textsuperscript{th FC}
It famously raised the states’ share in the {divisible pool of central taxes} from 32% to 42%. \Rightarrow\ (C) is true.
Step 2: Check the other statements
(A) Chair was Dr. Y. V. Reddy, not Dr. C. Rangarajan (who chaired the 12\textsuperscript{th} FC). \Rightarrow\ false.
(B) The electricity metering target year 2012 pertains to earlier policy/commission contexts, not the 14\textsuperscript{th} FC. \Rightarrow\ false.
(D) The 14\textsuperscript{th} FC’s award period was 2015–2020; 2010–2015 corresponds to the 13\textsuperscript{th} FC. \Rightarrow\ false.
Final Answer: Only (C) is correct.