Question

Consider the following with respect to Finance commission
1. It is a constitutional body
2. The recommendations of FC are generally accepted by the government
3. Its composition involves experts in various fields.
Which of the above statements are correct?

• A.
  1 only
• B.
  1 and 2
• C.
  1 and 3
• D.
  1,2 and 3

Answer 1

The correct option is D

1,2 and 3
The Finance Commission (FC) is a constitutional body, that determines the method and formula for distributing the tax proceeds between the Centre and states, and among the states as per the constitutional arrangement and present requirements. Its composition involves experts in financial, administrative and judicial fields. The recommendations of FC are generally accepted by the government.Under Article 280 of the Constitution, the President of India is required to constitute a Finance Commission at an interval of five years or earlier.