question_subject:
question_exam:
stats:
keywords:
The correct answer is option 4. The Fourteenth Finance Commission did not recommend sector-specific grants, unlike the previous Finance Commissions.
Option 1 states that the Fourteenth Finance Commission increased the share of states in the central divisible pool from 32 percent to 42 percent. This means that a larger portion of the funds collected by the central government through taxes and other means is allocated to the states.
Option 2 mentions that the area under forest cover is an important variable in the distribution of states` shares among states. This means that states with larger forest cover are given a higher share of funds.
Option 3 states that fiscal discipline is no longer considered as a variable in the distribution of states` shares among states. This means that the Fourteenth Finance Commission did not take into account the states` ability to manage their finances in determining their share of funds.
Therefore, the correct answer is indeed option 4. The Fourteenth Finance Commission did not recommend sector-specific grants, which were recommended by previous Finance Commissions.