UPSC CIVIL SERVICES PRELIMINARY EXAMINATION
UPSC Prelims 2015— Question 2
Q2
Question
With reference to the Fourteenth Finance Commission, which of the following statements is/are correct?
AnswerOption A
Explanation
Correct answer: Option A.
The Fourteenth Finance Commission recommended increasing the States’ share of the divisible pool of central taxes from 32 percent to 42 percent. This was a major change in tax devolution. The statement about sector-specific grants is not treated as correct in the combination tested here; the question therefore points to statement 1 alone.
Option-wise analysis:
Option A: “1 only” is correct. It directly matches the factual or conceptual requirement tested by the question and is supported by the principle explained above.
Option B: “2 only” is incorrect. It does not match the specific fact, definition, institutional role, geographical association, or constitutional/economic principle required here. The key distinction is the one identified in the core explanation, so this option can be eliminated.
Option C: “Both 1 and 2” is incorrect. It does not match the specific fact, definition, institutional role, geographical association, or constitutional/economic principle required here. The key distinction is the one identified in the core explanation, so this option can be eliminated.
Option D: “Neither 1 nor 2” is incorrect. It does not match the specific fact, definition, institutional role, geographical association, or constitutional/economic principle required here. The key distinction is the one identified in the core explanation, so this option can be eliminated.
Prelims takeaway: Focus on the precise institutional role, constitutional provision, geographical association, or technical definition being tested. UPSC questions often place a broadly familiar fact beside a narrowly incorrect qualifier; identifying that qualifier is essential for elimination.
Question Classification
SubjectEconomy
TopicPublic Finance
SubtopicTerminal topic
Question TypeStatement-based MCQ
Difficultydifficult
VerificationVerified