Q. Which of the following statements is/are incorrect regarding the Finance Commission?
Select the correct answer using the code 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 is incorrect: It is constituted by the President of India under the article 280 of the constitution

Statement 2 is correct: It recommends the distribution between the Union and the States of the net proceeds of taxes and the principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India.

Statement 3 is correct: It also recommends the measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats in the State based on the recommendations made by the State Finance Commission.

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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. With respect to the terms of reference of the FC, consider the following statements
1. It recommends both vertical and horizontal devolution of tax revenue
2. Principles governing grant-in-aid to states by the centre
3. Measures needed to augment consolidated fund of India

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?

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Q. Which of the following statements is/are incorrect regarding the Finance Commission? Select the correct answer using the code given below:

Q. Which of the following statements is/are incorrect regarding the Finance Commission?
Select the correct answer using the code given below: