2015 GS Paper I, all questions

UPSC Prelims 2015 · GS Paper I

Question 2: Economy and Social Development

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

  1. 1.It has increased the share of States in the central divisible pool from 32 percent to 42 percent.
  2. 2.It has made recommendations concerning sector-specific grants.

Select the correct answer using the code given below.

a1 only
b2 only
cBoth 1 and 2
dNeither 1 nor 2

AnswerUPSC’s answer is (a).

The Fourteenth Finance Commission, chaired by Y. V. Reddy, raised the States' share in the divisible pool of central taxes from 32 per cent to 42 per cent, a big step towards fiscal federalism. It did not recommend sector-specific grants; it preferred untied devolution and gave grants only for local bodies, disaster relief and revenue deficit. So statement 1 is correct and statement 2 is wrong.

  • 1. The States' share in the divisible pool rose from 32 to 42 per cent.
  • 2. It did not recommend sector-specific grants; it moved towards untied funds and kept grants to local bodies, disaster relief and revenue deficit.

How you could have got this

  1. If you were sure statement 1 is correct, (b) and (d) go: each of them leaves 1 out.

    What you needed to know: The States' share in the divisible pool rose from 32 to 42 per cent.

  2. Then, if you were sure statement 2 is not correct, (c) goes: it includes 2.

    What you needed to know: It did not recommend sector-specific grants; it moved towards untied funds and kept grants to local bodies, disaster relief and revenue deficit.

Only (a) is left. This one needs every statement.

Which options go is worked out from UPSC’s key and the options, not by a model.

Why each option is right or wrong
  • (a) Correct: only the 32 to 42 per cent increase in States' share is right.
  • (b) Wrong: the Commission avoided sector-specific grants and favoured untied funds to States.
  • (c) Wrong: statement 2 is false, so 'both' cannot hold.
  • (d) Wrong: statement 1 is true, since the share rose from 32 to 42 per cent.

Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2015, General Studies Paper I, Series A. The paper on upsc.gov.in.