What is the primary function of the Finance Commission in India?
Understand the Problem
The question is asking about the main role or responsibility of the Finance Commission in India, which is a constitutional body tasked with recommending how to distribute tax revenues between the central government and state governments.
Answer
The Finance Commission recommends the distribution of tax revenues between the Union and States in India.
The primary function of the Finance Commission in India is to make recommendations on the distribution of tax revenues between the Union and the States and also among the States themselves.
Answer for screen readers
The primary function of the Finance Commission in India is to make recommendations on the distribution of tax revenues between the Union and the States and also among the States themselves.
More Information
The Finance Commission is a constitutional body, created under Article 280 of the Indian Constitution, which aims to ensure a fair distribution of financial resources and equitable federal fiscal governance.
Tips
A common mistake is to confuse the Finance Commission's role with that of NITI Aayog or other financial bodies that might prepare budgets but do not distribute state revenues.
Sources
- ShowContentOne - Finance Commission India - fincomindia.nic.in
- Finance Commission of India (FCI): Its Functions, Role & Members - Next IAS - nextias.com
- Finance Commission of India - Byjus - byjus.com
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