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

The 14th Finance Commission significantly increased the states' share in the central divisible pool from 32% to 42% to enhance fiscal autonomy. Statement 2 is incorrect because the commission explicitly moved away from recommending sector-specific grants, preferring to provide states with higher unconditional transfers instead. This question tests the core concept of vertical devolution and the evolving nature of fiscal federalism in India.