The Finance Commission of India submits its report to ________.
- A.The head of NITI Aayog
- B.The Finance Minister of India
- C.The President of India
- D.The Prime Minister of India
Correct answer
Explanation
The correct answer is C, The President of India. The Finance Commission is constituted by the President under Article 280, and it therefore makes its recommendations to the President. Under Article 281 the President must cause every recommendation, together with an explanatory memorandum on the action taken on it, to be laid before each House of Parliament. Option A is wrong because NITI Aayog is an executive body set up by a Cabinet resolution in 2015 and has no role in receiving the Commission's report. Option B is wrong because the Finance Minister and the Ministry of Finance act on the recommendations once accepted but are not the authority the report is addressed to. Option D is wrong because the Prime Minister chairs the Union Council of Ministers and NITI Aayog but does not receive the report either.
Read the full article: Public Finance and Finance Commission: Articles and Deficits
Practice Questions
View allWhich article of the Constitution of India provides for the constitution of a Finance Commission?
- A.Article 112
- B.Article 266
- C.Article 280
- D.Article 324
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Article 280 requires the President to constitute a Finance Commission at the expiration of every fifth year, or earlier if the President considers it necessary, consisting of a Chairman and four other members, and lists the matters on which it is to make recommendations.
Read the full explanation →Which of the following statements is/are correct regarding the Finance Commission of India? A. The Finance Commission consists of a Chairman and four other members. B. The recommendations made by the Finance Commission are binding on the government and the government needs to grant funds according to the advice of the Commission. C. Article 280 of the Indian Constitution talks about the recommendations of the Finance Commission.
- A.A and B only
- B.A, B and C
- C.A and C only
- D.B and C only
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Statement A is correct: Article 280 provides that the Commission shall consist of a Chairman and four other members appointed by the President.
Read the full explanation →Fiscal deficit of the Government of India is best defined as:
- A.Revenue expenditure minus revenue receipts
- B.Total expenditure minus total receipts other than borrowings
- C.Total expenditure minus interest payments
- D.Capital expenditure minus capital receipts
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Fiscal deficit measures the whole amount the government must borrow in a year, because it compares everything it spends with everything it earns from taxes, non-tax revenue, recovery of loans and disinvestment, leaving borrowing out of the receipts side.
Read the full explanation →According to Article 243-I of the Constitution of India, a Finance Commission is constituted to review the financial position of the Panchayats:
- A.at the expiration of every sixth year
- B.at the expiration of every fifth year
- C.at the expiration of every second year
- D.at the expiration of every third year
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Article 243-I, inserted by the seventy-third Constitutional Amendment of 1992, requires the Governor of a State to constitute a Finance Commission at the expiration of every fifth year to review the financial position of the Panchayats and to recommend how taxes, duties, tolls and fees should be divided between the…
Read the full explanation →The State Finance Commission is a:
- A.Legal body
- B.Non-statutory body
- C.Constitutional body
- D.None of the above
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The State Finance Commission owes its existence directly to the Constitution: Article 243-I, added by the seventy-third Amendment, requires the Governor to constitute it every fifth year for the Panchayats, and Article 243-Y extends the arrangement to the Municipalities.
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