Q- Consider the following statements with respect to Finance Commission FC-1- The Commission determines the principles that govern grants-in-aid to states from the Consolidated Fund of India-2- 15th FC has also included progress in nutrition and health status of states for sector specific grants-Which of the statements given above is-are correct-A-Both 1 and 2B-Neither 1 or 2C2 onlyD-1 only

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Standard XII

Economics

Provision-Based Approach

Q. Consider t...

Question

Q. Consider the following statements with respect to Finance Commission (FC):
Which of the statements given above is/are correct?

1 only

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2 only

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Both 1 and 2

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Neither 1 or 2

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Solution

The correct option is C
Both 1 and 2
Explanation:

Statement 1 is correct: The Finance Commission has the following functions or duties:

The Commission makes recommendations to the President of India on the distribution of tax proceeds between the Union and the States and the share of each state.

The Commission also decides the principles that govern the payment of grants-in-aid to states from the Consolidated Fund of India.

The President of India can also refer any other matter to the Finance Commission in the interest of building a sound financial system.

Statement 2 is correct: 15th FC has recommended a grant of Rs 7,375 crore for nutrition in 2020-21. In the final report FC has included various sectors for sector specific grants: (i) health ,(ii) nutrition, (iii) railways, (iv) judiciary, and (v) pre-primary education.

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Similar questions

Q. Consider the following statements about Finance Commision :

1. It recommends the distribution of the net proceeds of taxes to be shared between the Centre and the states, and the allocation between the states of the respective shares of such proceeds.
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Q. Consider the following statements with respect to Finance Commission (FC): Which of the statements given above is/are correct?

Q. Consider the following statements with respect to Finance Commission (FC):
Which of the statements given above is/are correct?