Q. Which of the following statements is/are correct regarding the functions of the Finance Commission?

Choose the correct answer using the codes given below:

1 only

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1 and 2 only

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2 and 3 only

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1, 2 and 3

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Solution

The correct option is A 1 only
Explanation:

Statement 1 correct: The Finance Commission recommends principles governing the grants-in-aid to the states by the Centre out of the consolidated fund of India.

Statement 2 incorrect: It recommends (and does not decide) the net tax proceeds distribution to be divided between the Centre and the states, and the allocation of the same between states. The Finance Commission has an advisory role only and the decision making authority is exercised by the Government.

Statement 3 incorrect: Only statutory grants are provided on the recommendations of the Finance Commission. Discretionary grants are provided by the centre on its own.

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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.
2. It recommends the principles that should govern the grants-in-aid to the states by the Centre (i.e., out of the consolidated fund of India).
3. The recommendations made by the Finance Commission are only of advisory nature and hence, not binding on the government.

Which of the above statements is/ are correct ?

Q. Which of the following is/are used as criteria by the 15^th Finance Commission for devolution of taxes to states from the Consolidated Fund of India?

Choose the correct answer using the codes given below:

1 only
2, 3 and 4 only
1 and 5 only
1, 2, 3, 4 and 5

Q. Which of the following is/are used as a criteria by the 15^th Finance Commission for devolution of taxes to states from the Consolidated Fund of India?

Choose the correct answer using the codes given below:

1 only
2, 3 and 4 only
1 and 5 only
1, 2, 3, 4 and 5

Consider the following statements regarding Grants-in-Aid to the States:
1. The provision of Statutory Grants to states is made under Article 282 of constitution.
2. The provision of Discretionary Grants to states is made under Article 275 of constitution.
3. The bases of Statutory Grants are recommendations of finance commission.
Which of the above statement(s) is/are correct?

Q. Consider the following statement regarding