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Consider the following statements about 14th Finance Commission:
1.The commission has done away with the distinction between special and general category states.
2.It has also recommended doing away with plan and non-plan distinction in revenue expenditure of state governments.
Which of the statements given above is/are correct?
1 only
2 only
Both 1 and 2
Neither 1 nor 2
"The commission has done away with the distinction between special and general category states." - This statement is correct. The 14th Finance Commission did away with the categorization of states into special and general categories, providing a uniform approach to all states.
"It has also recommended doing away with plan and non-plan distinction in revenue expenditure of state governments." - This statement is correct. The 14th Finance Commission recommended doing away with the plan and non-plan distinction in the revenue expenditure of state governments, aiming to provide greater flexibility to states in utilizing funds.
Therefore, the correct answer is 3, "Both 1 and 2."
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