Q. Which of the following statements regarding the Finance Commission is incorrect?
Q. Which of the following statements regarding the Finance Commission is incorrect?
The correct option is D The 15th finance commission has increased the share of states in the central taxes for the year 2021-26 by 10% due to COVID pandemic.
Explanation:
The Finance Commission is a constitutional body for the purpose of allocation of certain revenue resources between the Union and the State Governments. It was established under Article 280 of the Indian Constitution by the Indian President. It was created to define the financial relations between the Centre and the states. The recommendations are advisory in nature and, hence, not binding on the Government.
Finance Commission Chairman and Members:
- Chairman: Heads the Commission and presides over the activities. He should have had public affairs experience. The Fifteenth Finance Commission is headed by Sh. N K Singh.
- Four Members.
- The Parliament determines legally the qualifications of the members of the Commission and their selection methods.
As per 15th finance commission, the share of states in the central taxes for the 2021-26 period is recommended to be 41%, same as that for 2020-21. This is less than the 42% share recommended by the 14th Finance Commission for 2015-20 period. The adjustment of 1% is to provide for the newly formed union territories of Jammu and Kashmir, and Ladakh from the resources of the centre.
Explanation:
The Finance Commission is a constitutional body for the purpose of allocation of certain revenue resources between the Union and the State Governments. It was established under Article 280 of the Indian Constitution by the Indian President. It was created to define the financial relations between the Centre and the states. The recommendations are advisory in nature and, hence, not binding on the Government.
Finance Commission Chairman and Members:
- Chairman: Heads the Commission and presides over the activities. He should have had public affairs experience. The Fifteenth Finance Commission is headed by Sh. N K Singh.
- Four Members.
- The Parliament determines legally the qualifications of the members of the Commission and their selection methods.
As per 15th finance commission, the share of states in the central taxes for the 2021-26 period is recommended to be 41%, same as that for 2020-21. This is less than the 42% share recommended by the 14th Finance Commission for 2015-20 period. The adjustment of 1% is to provide for the newly formed union territories of Jammu and Kashmir, and Ladakh from the resources of the centre.
