SarkariPYQ

SSC CGL 2023 PYQ — Question 45

SSC CGL - 20 July 2023 - Shift 4 • General Awareness • Q45

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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 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.

Show answer & explanation

Correct answer: C

Explanation

The correct answer is option 3 i.e. A only.

  1. Article 280 of the Indian Constitution established the Finance Commission of India as a constitutional authority. Every five years or sooner if the President deems it necessary, it is created.
  2. The President appoints the Chairman and the other four members of the Finance Commission.
  3. Making recommendations on how to divide the net proceeds of taxes among the states and between the federal government is its main duty.
  4. It also covers topics like state grants-in-aid and ways to increase the Consolidated Fund of States. Its recommendations are important in guaranteeing a just and equitable financial distribution, even if they are advisory and not legally enforceable.
  5. This contributes to India's balanced fiscal federalism.