FFC recommendations - Budget & Economic Survey
Q. Which of the following statement / s is / are correct?
1) Sector specific grants are continued from the Thirteenth Finance Commission to the Fourteenth Finance Commission (FFC).
2) The FFC has recommended reductions in Grant-in Aids and Central Assistance to States (CAS).
3) The FFC has recommended grants to rural and urban local bodies, performance grant, grants for revenue deficit.- Published on 06 Aug 15a. Only 1 and 2
b. Only 1 and 3
c. Only 2 and 3
d. None of the above
ANSWER: Only 2 and 3
The FFC has not made any recommendation concerning sector specific-grants unlike the Thirteenth Finance Commission. CAS has become more and more discretionary in recent years. Grants in statement 3 are formula based and hence progressive.
