Q50
Indian PolityCentre-State Relations & Fiscal Federalism
Which of the following institutions of India is the chief advisory body on the distribution of tax revenue between the Centre and the States?
- a.The Planning Commission
- b.The Finance Commission
- c.The Lok Sabha
- d.The Rajya Sabha
Answer: (B) The Finance Commission
The Finance Commission is a constitutional body established under Article 280 of the Indian Constitution. It is the chief advisory body recommending how tax revenues should be distributed between the Union and the States. A new Finance Commission is constituted every five years.