Who was the first chairman of Finance Commission of India?
- A.Ashok Kumar Chanda
- B.KC Neogy
- C.K Santhanam
- D.PV Rajamannar
Correct answer
Explanation
The correct answer is B, KC Neogy. Kshitish Chandra Neogy chaired the First Finance Commission, set up by the President in November 1951, which gave its report in 1952 for the period 1952 to 1957. The Finance Commission is a constitutional body under Article 280. It is formed every five years, or earlier if needed, with a chairman and four other members, and it recommends how the taxes collected by the Union are shared with the States and how grants-in-aid are given. The qualifications of its members are laid down in the Finance Commission (Miscellaneous Provisions) Act of 1951. Neogy had earlier been a member of the Constituent Assembly and a minister in Nehru's first Cabinet. A is wrong because Ashok Kumar Chanda chaired the Third Finance Commission. C is wrong because K Santhanam chaired the Second Finance Commission. D is wrong because PV Rajamannar chaired the Fourth Finance Commission. Exam tip: the first four chairmen in order are Neogy, Santhanam, Chanda, Rajamannar; Article 280 is the Finance Commission article.
Practice Questions
View allAccording to the law of diminishing marginal utility, as the amount of a good consumed increases, the marginal utility of that good tends to
- A.improve
- B.diminish
- C.remain constant
- D.first diminish and then improve
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Each extra unit of a good gives a consumer less additional satisfaction than the unit before it, so marginal utility falls as consumption rises.
Read the full explanation →Consider the following statements about impact of tax : 1. A tax is shifted forward to consumers if the demand is inelastic relative to supply. 2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand. Which of the statements given above is/are correct?
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
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The burden of a tax falls more heavily on whichever side of the market is less elastic, the side that cannot easily walk away.
Read the full explanation →UBI, as an alternative for subsidies in poverty alleviation, stands for
- A.Union Basic Income
- B.Undefined Basic Income
- C.Unconditional Basic Income
- D.Universal Basic Income
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UBI is the idea of paying every citizen a fixed sum of money regularly, without conditions, in place of a large number of separate subsidies and welfare schemes.
Read the full explanation →Who among the following is the Chairman of the Fourteenth Finance Commission?
- A.C. Rangarajan
- B.Vijay Kelkar
- C.Y. V. Reddy
- D.Rakesh Mohan
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The Fourteenth Finance Commission, set up in 2013 for the award period 2015-2020, was chaired by Y. V. Reddy, a former Governor of the Reserve Bank of India.
Read the full explanation →Why was constitutional amendment needed for introducing GST?
- A.States were not willing to agree with the Union for introduction of GST without amendment in the Constitution.
- B.GST was to be implemented on concurrent base and Article 246 was inadequate for such a case.
- C.The Empowered Committee of Finance Ministers had recommended for constitutional amendment.
- D.The GST Council had recommended for constitutional amendment so that its power enhances.
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GST is levied by the Union and the States together on the same supply, and Article 246, which splits taxing powers between them through separate lists, did not allow such a concurrent tax.
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