Question

Choose the correct answer from the alternatives given.
Select the correct statements about 14th Finance Commission which submitted its report to President
1. It covers the period between 1 April, 2015 and 31 March, 2020.
2. The Commission headed by former RBI Governor Y.V. Reddy.
3. Provides for devolution of tax receipts form the Centre to the States.
4. Article 280 of Constitution provides for appointment of Finance Commission
5. 1st and 13th Finance Commission was headed by ICC. Neogy & Dr. Vijay Kelkar respectively.

• A. 1,3 & 5 are correct
• B. 1,2 & 3 are correct
• C. 1,3 & 4 are correct
• D. All are correct

Answer 1

The correct option is D All are correct

All are correct .

• The Fourteenth Finance Commission of India was a finance commission constituted on 2 January 2013. The commission's chairman was former Reserve Bank of India governor Y.V. Reddy and its members were Sushma Nath, M. Govinda Rao, Abhijit Sen, Sudipto Mundle, and AN Jha. The recommendations of the commission entered force on April 2015; they take effect for a five-year period from that date.
• The fourteenth finance commission is of the view that tax devolution should be the primary route of resources to the states. The commission recommends to increase the tax devolution of the divisible pool to states to 42% for years 2015 to 2020.
  
• The Finance Commission is constituted by the President under article 280 of the Constitution, mainly to give its recommendations on distribution of tax revenues between the Union and the States and amongst the States themselves.
  
• The First Finance Commission of India was appointed in 1951, for the period 1952-57 by the President of India and was chaired by K. C. Neogy.Thirteenth Finance Commission of India was constituted by the President of India under the chairmanship of Vijay L. Kelkar on 13 November 2007.