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WBCS Main Examination 2023 — Paper V: Indian Constitution and Economy · Question 109 of 200

Q109
Indian EconomyPublic Finance, Budget & Taxation
The Finance Commissions of India
  1. a.evaluate the state of finances of the Union Government only.
  2. b.recommend the sharing of tax revenues by the Centre and the States.
  3. c.determine budgetary provisions.
  4. d.set guidelines for imposition of taxes.

Answer: (B) recommend the sharing of tax revenues by the Centre and the States.

Under Article 280 the Finance Commission recommends how the net proceeds of shared taxes are divided between the Centre and the States and among the States, and the principles for grants-in-aid. It does not review only the Union's finances, frame budgets or set rules for imposing taxes.

Q108 Whole paperQ110