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Indian polity miscellaneous

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Indian Polity

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  1. The Finance Commission is mainly concerned with recommending to the President about
    1. distributing net proceeds of taxes between the Centre and the States
    2. principles Governing the grants-in-aid to be given to States
    3. both (1) and (2)
    4. neither (1) and (2)
Correct Option: C

The Finance Commission is constituted to make recommendations to the President about the distribution of the net proceeds of taxes between the Union and States and also the allocation of the same amongst the States themselves. It is also under the ambit of the Finance Commission to define the financial relations between the Union and the States. They also deal with devolution of non-plan revenue resources.


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