gs1medium
With reference to the Finance Commission of India, which of the following statements is correct?
- A.It encourages the inflow of foreign capital for infrastructure development
- B.It facilitates the proper distribution of finances among the Public Sector Undertakings
- C.It ensures transparency in financial administration
- D.None of the statements A, B and C. given above is correct in this context.
▶ Answer & Explanation
Correct answer: D. None of the statements A, B and C. given above is correct in this context.
The Finance Commission is a constitutional body established under Article 280. Its primary role is to make recommendations to the President regarding the distribution of net proceeds of taxes between the Union and the States, and the allocation of the same between the States. It also makes recommendations on principles governing grants-in-aid and other matters related to fiscal federalism. Options A, B, and C describe functions that fall outside the explicit mandate of the Finance Commission.
Source: UPSC gs1 2011