With reference to the Fourteenth Finance Commission, which of the following statements is/are correct?<br/>1. It has increased the share of States in the central divisible pool from 32 percent to 42 percent.<br/>2. It has made recommendations concerning sector-specific grants.<br/><br/>Select the correct answer using the code given below.

1. Correct. The Fourteenth Finance Commission increased the States’ share in the divisible pool of central taxes from 32% to 42%.

2. Incorrect. The confusion is with the Thirteenth Finance Commission, which had recommended some sector-specific/performance grants. The Fourteenth Finance Commission moved away from such tied sector-specific grants and emphasized higher tax devolution and grants mainly for local bodies and disaster relief.

Therefore, only statement 1 is correct.