Recommendations of Fourteenth Finance Commission - Budget & Economic Survey

Q.  Which of the following statement / s is / are correct?

1. The Fourteenth Finance Commission (FFC) has enhanced the share of the states from the current 32 percent to 40 per cent.

2. All special category states are gainers while only few general category states will benefit in absolute terms.
- Published on 06 Aug 15

a. Only 2
b. Only 1
c. Both 1 and 2
d. None of the above

ANSWER: None of the above
 
The share is 42%. It is a radical enhancement. .The Twelfth (period 2005-10) and Thirteenth (period 2010-15) had recommended a state share of 30.5% (increase of 1%) and 32% (increase of 1.5%). All states stand to gain from FFC transfers in absolute terms. Gains by each state as compared to what they received in earlier years differ. Thus in relative terms few states gain more than others.

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