Which of the following forms a part of recommendations of 14th finance commission ........

Economic Affairs Public Finance and Debt Management

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Which of the following forms a part of recommendations of 14th finance commission?

Increase tax devolution to states to 41 % of net tax proceeds

Grants to local bodies both PRIs and ULBs based on performance as a parameter along with basic grants

Post devolution grants to 12 states

Rationalise pricing of public utilities.

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Explanation:

- Increase tax devolution to states to 41% of net tax proceeds: This was not recommended by the 14th Finance Commission; they recommended increasing it to 42%.

- Grants to local bodies both PRIs and ULBs based on performance as a parameter along with basic grants: The 14th Finance Commission did recommend performance-based grants along with basic grants for local bodies.

- Post devolution grants to 12 states: The Commission recommended this to fill the revenue gap for some states.

- Rationalise pricing of public utilities: This wasn't a direct recommendation by the 14th Finance Commission.

Correct Answer: Option 2, Grants to local bodies both PRIs and ULBs based on performance as a parameter along with basic grants