It has increased the share of States in the central divisible pool from 32 percent to 42 percent. It has made recommendations concerning sector-specific grants. Select the correct answer using the code given below. Statement 1 is correct. The Fourteenth Finance Commission (Chairman: Y. V. Reddy) recommended a significant increase in the share of states in the divisible pool of central taxes from 32% (recommended by the 13th FC) to 42% for the period 2015-2020. This was a major shift towards greater fiscal decentralization. Statement 2 is correct. While the 14th FC focused on increasing the untied share of states in central taxes, it also made recommendations concerning various grants, including grants to local bodies (Panchayats and Municipalities) and sector-specific grants, particularly for health and education, although the emphasis on tied sector- specific grants was reduced compared to earlier commissions.