Match the financial power/body with its primary function:
| List I (Power/Body) | List II (Function) |
|---|---|
| 1. Finance Commission | P. Discretionary grants |
| 2. Art. 282 | Q. Unexpected expenses |
| 3. Consolidated Fund | R. Tax distribution |
| 4. Contingency Fund | S. All Union revenues |
Show answer & explanation
Correct answer: A
Explanation
Correct Answer
1-R, 2-P, 3-S, 4-Q
Explanation
Finance Commission (1-R): The primary function of the Finance Commission, constituted under Article 280 of the Constitution, is to recommend the distribution of taxes between the Centre and the States.
Article 282 (2-P): This article empowers the Union or any State to make discretionary grants for public purposes.
Consolidated Fund (3-S): Article 266(1) of the Constitution relates to the Consolidated Fund of India, in which all revenues, loans received, and expenditures of the government are deposited.
Contingency Fund (4-Q): Established under Article 267, this fund is under the control of the President and is used to meet unexpected expenses without prior parliamentary approval.
Key Points
Parliamentary approval is mandatory to withdraw funds from the Consolidated Fund, whereas the Contingency Fund acts like an advance fund. The recommendations of the Finance Commission play a vital role in balancing Centre-State financial relations.
Important Questions and Answers
Question: What is the process for withdrawing funds from the Consolidated Fund of India?
Answer: Any money from the Consolidated Fund of India can only be withdrawn through an 'Appropriation Bill' passed by Parliament.
Question: For how many years is the Finance Commission constituted?
Answer: Generally, the Finance Commission is constituted every fifth year.