Question
Download Solution PDFThe primary function of the Finance Commission in India is to
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFThe correct answer is option 1.
Key PointsThe Finance Commission is a constitutional body established under Article 280 of the Indian Constitution. Its primary function is to ensure an equitable distribution of financial resources between the Centre and the States. Hence option 1 is the correct answer.
Additional Information
- Established under Article 280 of the Indian Constitution.
- The President of India constitutes the Finance Commission every five years.
- Consists of a Chairperson and four members appointed by the President.
- The members are typically experts in the fields of finance, economics, and public administration.
- Primary Functions:
- Revenue Distribution: Recommends the distribution of tax revenues between the Centre and the States.
- Grants-in-aid: Recommends the principles for grants-in-aid to the States from the Union Government.
- Fiscal Relations: Improves the fiscal relations between the Centre and States by addressing their financial needs.
Last updated on Jul 18, 2025
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