SSC Stenographer 2026 PYQ — Question 1

Solution: The correct answer is Option (B).

Explanation:
☛ Article 280 of the Constitution provides for the establishment of a Finance Commission by the President every five years.
☛ The Commission recommends the distribution of net proceeds of taxes between the Union and the States, the principles of grants-in-aid, and measures to augment the resources of states.
☛ Its recommendations are advisory and not binding on the government; the Union may accept them with modifications or reject them.
☛ Hence, Option (A) is incorrect because the Finance Commission's recommendations are not constitutionally binding.
☛ GST is a dual GST where both Centre and States levy tax on a common base, so states have not completely ceded their taxation powers, making Option (C) incorrect.
☛ States differ widely in revenue capacity and development levels; the Constitution does not grant equal financial autonomy to all, so Option (D) is also incorrect.

Extra Exam-Relevant Facts:
☛ The Finance Commission is a quasi-judicial body constituted under Article 280.
☛ The 15th Finance Commission, chaired by N.K. Singh, gave recommendations for the period 2021–26.
☛ The 14th Finance Commission recommended increasing the share of states in central taxes to 42%.
☛ GST was introduced by the 101st Constitutional Amendment Act, 2016, and the GST Council is established under Article 279A.
☛ The Finance Commission is appointed every five years or earlier, as the President deems necessary.

Important One-Liners for Upcoming Exams:
☛ Which Article of the Constitution deals with the Finance Commission? → Article 280
☛ Who appoints the Finance Commission? → The President of India
☛ What maximum share of central taxes was recommended by the 14th Finance Commission? → 42%
☛ Under which Article is the GST Council established? → Article 279A
☛ Which body recommends the distribution of tax revenues between the Union and States? → Finance Commission