Multiple choice

Consider the following statements:

  1. The twelfth Finance Commission has not recommended the continuation of fiscal reforms facility.

  2. In the twelfth Finance Commission Report for the period 2005-10, the grants-in-aid recommended for maintaining public buildings is five times more than that for maintaining forests.

Which of the statements given above is/are correct?

  1. Only 1

  2. Only 2

  3. Both 1 and 2

  4. Neither 1 nor 2

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Statement 1 is correct: The 12th Finance Commission did NOT recommend continuation of the fiscal reform facility, which was a special incentive for states implementing fiscal discipline. Statement 2 is correct: The Commission's report (2005-10) did recommend grants for public buildings at five times the amount for forest maintenance - this reflects prioritization of urban infrastructure over environmental conservation. Both statements accurately reflect the 12th Finance Commission's recommendations.

Keep practicing — related questions