With reference to Finance Commission, consider the following statements:
1. It is a permanent body created by the President of India
2. Its recommendation is binding upon the government
Which of the statements given above is/are correct?
A
1 only
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B
2 only
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C
Both 1 and 2
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D
Neither 1 nor 2
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Solution
The correct option is D Neither 1 nor 2 The Central Finance commission is an adhoc body which is created by the President in every 5 years or earlier.
The Finance Commission is an advisory body hence the recommendation are not binding upon the central Government.