Which one of the following authorities recommends the principles governing the grants-in-aid of the revenues to the states out of the Consolidated Fund of India?
✓ Correct answer: a) Finance Commission
ExplanationThe Finance Commission plays a crucial role in India’s fiscal structure.It is a constitutional body constituted by the President of India every five years, or more frequently if deemed necessary.Its primary responsibility is to recommend the distribution of financial resources between the central and state governments.One key function of the Finance Commission is to propose principles and guidelines for distributing grants-in-aid to states from the Consolidated Fund of India.These grants aim to support states in addressing fiscal needs, ensuring balanced regional development, and mitigating economic disparities among states.295
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