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

1 only

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1 and 2

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1 and 3

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1,2 and 3

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Solution

The correct option is B 1 and 2
As per Article 280 of the constitutions Finance Commission recommends the formula for

1 The distribution of tax proceeds between the Centre and the states, and the allocation of the same amongst states.
2 The principles governing the grants-in-aid to the states by the Centre out of the consolidated fund of India.
3 The steps required to augment the consolidated fund of a state to boost the resources of the panchayats and the municipalities of the state

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Similar questions

Q. Which authority recommends the principles governing the grants-in-aid of the revenues of the States out of the Consolidated Fund of India?

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. Q. Consider the following statements with respect to Finance Commission (FC):Which of the statements given above is/are correct?

Both 1 and 2
Neither 1 or 2
2 only
1 only

Consider the following statements:

1) The 14^th Finance Commission recommended increasing in the share of tax devolution to 42% of total divisible pool from 32% during the 13^th Finance Commission.

2) Cess and Surcharges were not made the part of the divisible pool as it would have brought down the revenue of the Central Government.

3) The 14^th Finance Commission has recommended doing away with ‘post-devolution revenue deficit grants’; which was implemented after the recommendation of 13^th Finance Commission.

Select the correct statement(s):

Q. Grants-in-aid of revenue to the states is recommended by the ____________.

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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

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