Finance Commission

The Finance Commission is required to make recommendations to the President of India on the matter of

1. 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. The principles that should govern the grants-in-aid to the States by the Centre out of the Consolidated Fund of India.
3. The measures needed to augment the consolidated fund of a state to supplement the resources of the panchayats and the municipalities in the state on the basis of the recommendations made by the State Finance Commission.
4. Expenditure from the Contingency Fund of India.

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Consider the following statements with regards to State Finance Commission:

1. It determines the taxes, duties, tolls and fees which may be assigned to, or appropriated by the Panchayat.
2. It determines the grants-in-aid to the Panchayats from the Consolidated Fund of the State.
3. Its recommendations are binding on the State Governments.

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Consider the following statements:

1. The Finance Commission submits its report to the Parliament.
2. The recommendations of the Finance Commission are only of advisory nature and are not binding on the government.

Which of the following is TRUE?

Which of the following explains the utility of Finance Commission in India?

1. For reinforcing federal character of Indian Constitution
2. States of India do not stand on equal footage
3. Tax system in India is not rationalized

Which of the statements given above is/are TRUE?

What are the functions of the State Finance Commission?

1. Distributes between the State and Panchayats, the net proceeds of taxes, duties and tolls levied by the state.
2. Gives the grant-in-aids to the Panchayats from the Consolidated Fund of the India.
3. Recommends for the measures needed to improve the financial position of the state.
4. Any other matter referred to it by the governor in the interest of sound finance of the Panchayats.

Choose the correct statements from the above:

The Finance Commission makes recommendations with respect to which of the following matters?

1. Distribution of taxes between the centre and the states.
2. Expenditure from the Contingency Fund of India.
3. Grants-in-aid to the states by the centre.

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The prime function of FINANCE COMMISSION OF INDIA is to

Consider the following statements:

1. The Finance Commission of India is a quasi judicial body.
2. It is appointed by the Parliament of India in consultation with the Chief Justice of India.

Which of the statements given above is/are incorrect?

Consider the following statements about the Finance Commission and select the correct ones:

1. The Finance Commission consists of a Chairman and four other members to be appointed by the President on the advice of the Council of Ministers.
2. The chairman should be a person having specialised knowledge of Finance and the members should have experience in public affairs.
3. Finance Commission also makes recommendations to the President on the matters relating to the principles that should govern the grant-in-aid to the states by the centre.
4. Recommendations made by the Finance Commission are binding on the government.

Codes:

Which of the given statements is NOT correct?

Consider the following statements:

1. The Finance Commission submits its report to the Parliament.
2. The recommendations of the Finance Commission are only of advisory nature and are not binding on the government.

Which of the following is TRUE?

Consider the following statement-

1. Share of revenue between the state and local bodies are based upon the principle given by the Central Finance Commission.
2. Central Finance commission is constituted by the President of India under Article 281.

Which of the statement given above is/are incorrect?

Which of the following explains the utility of Finance Commission in India?

1. For reinforcing federal character of Indian Constitution
2. States of India do not stand on equal footage
3. Tax system in India is not rationalized

Which of the statements given above is/are TRUE?

Consider the following statements about the Finance Commission:

1. According to Article 280, Finance Commission shall consist of a Chairman and four other members to be appointed by the President.
2. Parliament may by law determine the qualifications which shall be required for appointment as members of the Commission.
3. Finance Commission recommends principles which govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India.

Which of the above statements are correct?

Which of the following is recommended by 14th Finance Commission?

1. Tax devolution should be the primary route for transfer of resources to the States
2. It has recommended distribution of grants to States for local bodies using 2011 population data.
3. For understanding the States’ needs, the Plan and non-Plan distinction should be ignored.

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Which of the following recommendation(s) is/are given by Fourteenth Finance Commission?

1. 3% Fiscal Deficit to be maintained during the period 2016-2020.
2. Vertical tax devolution to the States to be increased from 32% to 42%.
3. Considering new component of Demogra-phic Change (as per census 2011) to decide horizontal tax distribution among States.

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Consider the following statements regarding Finance Commission and find out the incorrect-