The primary function of the Finance Commission in India is to:
✓ Correct answer: a) distribution of revenue between the Centre and the States
ExplanationThe Finance Commission is a constitutional body established under Article 280 of the Indian Constitution.Its key role is to recommend how financial resources should be distributed between the Central Government and the State Governments.The Commission assesses several factors, including:The financial conditions of the Centre and StatesRevenue needs and expenditure patternsThe fiscal capacity of different states Based on this evaluation, it recommends the allocation of tax revenues, the distribution of revenue between the Centre and the States, as well as grants-in-aid and other financial resources.This helps ensure a balanced and equitable distribution of funds, promoting both fiscal autonomy and development across various states.Polity 22326. NON-CONSTITUTIONAL BODIES 298
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