UPSC CIVIL SERVICES PRELIMINARY EXAMINATION

UPSC Prelims 2015— Question 2

2015General Studies Paper-IEconomyPublic Financedifficult
Q2

Question

With reference to the Fourteenth Finance Commission, which of the following statements is/are correct?

Options

A
1 only✓ Correct Answer
B
2 only
C
Both 1 and 2
D
Neither 1 nor 2
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