Q. In the context of the “Finance Commission”, consider the following statements:
Which of the above statements is/are correct?
Q. In the context of the “Finance Commission”, consider the following statements:
Which of the above statements is/are correct?
The correct option is B
2 only
Explanation:
Statement 1 is incorrect:
By virtue of the Article 280 of the Indian Constitution, the President constitutes the Finance Commission every fifth year or at such earlier time.
Besides, appointing the members of the commission the President specifies their office time also.
But it is the Parliament (as specified by the Constitution) to determine the qualifications of members of the commission and the manner in which they should be selected.
Statement 2 is correct:
It is a constitutional body (Article 280) and a quasi judicial body since it possesses all the powers of civil court under Code of Civil Procedure (1908). Further, it shall be deemed to be a civil court for purposes of sections 480 and 482 of the “Code of Criminal Procedure”.
Statement 3 is incorrect:
Finance commission recommends the needed measures for augmenting the consolidated fund of a state to supplement the resources of the panchayats and the municipalities in the state. This will be done on the basis of the recommendations made by the state finance commission. Further, any other matter referred to it by the president in the interests of sound finance can also be exercised by the body.
2 only
Explanation:
Statement 1 is incorrect:
By virtue of the Article 280 of the Indian Constitution, the President constitutes the Finance Commission every fifth year or at such earlier time.
Besides, appointing the members of the commission the President specifies their office time also.
But it is the Parliament (as specified by the Constitution) to determine the qualifications of members of the commission and the manner in which they should be selected.
Statement 2 is correct:
It is a constitutional body (Article 280) and a quasi judicial body since it possesses all the powers of civil court under Code of Civil Procedure (1908). Further, it shall be deemed to be a civil court for purposes of sections 480 and 482 of the “Code of Criminal Procedure”.
Statement 3 is incorrect:
Finance commission recommends the needed measures for augmenting the consolidated fund of a state to supplement the resources of the panchayats and the municipalities in the state. This will be done on the basis of the recommendations made by the state finance commission. Further, any other matter referred to it by the president in the interests of sound finance can also be exercised by the body.
