Which among the following is one of the three heads grouped as recomme
Right Answer is: D
a) The Finance Commission is required to make recommendations to the President of India on following matters:
• The distribution of the net proceeds of taxes between the Union and the States which are to be divided between them and the allocation between the States of their respective shares.
• The principles that should govern the grants-in-aid to the states out of the Consolidated Fund of India by the Centre.
• On the basis of the recommendations of the Finance Commission of the State, the measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats and Municipalities in the State.
• Any other matter referred by the President to the Commission in the interests of sound finance.
Topic ||| General Awareness||Economy & Finance||Economy and Finance
Linked To Above Question ||| No
Difficulty ||| Medium
Time ||| 60
Marking ||| 3, 1
SearchTags ||| SSC CGL AAO 2018, PYSP
b) The recommendations of the finance commission can be grouped under the following three heads-
• Union loan to States
• Grants-in-aid to State
• Division and distribution of taxes and duties