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Q: Which of the following statements is/are correct regarding the Finance Commission of India? A. The Finance Commission consist of a Chairman and four other members. B. The recommendations made by the Finance Commission are binding on the government and the government needs to grant funds according to the advice of the Commission, C. Article 280 of the Indian Constitution talks about the recommendations of the Finance Commission.
  • A. Only A
  • B. Only B and C
  • C. A, B and C
  • D. Only A and B
Correct Answer: Option A - The Finance Commission of India is a Constitutional body established under Article 280 of the Indian Constitution. The Commission consists of a Chairman and four other members appointed by the President of India. The recommendations made by the Finance Commission are advisory in nature and not binding on the government. The government may accept or reject the recommendations. The Commission recommends the distribution of taxes between the Centre and the States, grants-in-aid to the States, and other fiscal matters. The Finance Commission is constituted every five years.
A. The Finance Commission of India is a Constitutional body established under Article 280 of the Indian Constitution. The Commission consists of a Chairman and four other members appointed by the President of India. The recommendations made by the Finance Commission are advisory in nature and not binding on the government. The government may accept or reject the recommendations. The Commission recommends the distribution of taxes between the Centre and the States, grants-in-aid to the States, and other fiscal matters. The Finance Commission is constituted every five years.

Explanations:

The Finance Commission of India is a Constitutional body established under Article 280 of the Indian Constitution. The Commission consists of a Chairman and four other members appointed by the President of India. The recommendations made by the Finance Commission are advisory in nature and not binding on the government. The government may accept or reject the recommendations. The Commission recommends the distribution of taxes between the Centre and the States, grants-in-aid to the States, and other fiscal matters. The Finance Commission is constituted every five years.