Finance Commission - Political Science Coaching Centre

Created by

Dr. S. H. Sarkar

Finance Commission

1 / 32

1. Which of the following is not correct about Finance Commission? (KARNATAKA SET 2016 PAPER II)

(A) Constituted at the expiration of every fifth year

(B) Recommends the distribution of proceeds of taxes between Centre and States

(C) Consists of a Chairman and four other members

(D) Its advice is binding on the Government

2 / 32

2. The Chairman of the Finance Commission in India is (KARNATAKA SET 2017 PAPER II)

(A) C. Rangarajan

(B) Raghuram Rajan

(C) Y. V. Reddy

(D) Vijay L. Kelkhar

3 / 32

3. In ____________ the Union Government of India accepted the recommendation of 14th Finance Commission. (KARNATAKA SET 2018 PAPER II)

(A) January 2014

(B) February 2015

(C) January 2016

(D) February 2017

4 / 32

4. How often is the Finance Commission Constituted in India? (GUJARAT SET DECEMBER 2002)

(A) Only once

(B) Once every year

(C) After every five years

(D) After every ten years

5 / 32

5. Who was the Chairman of the first Finance Commission? (GUJARAT SET JULY 2004)

(A) K. Santhanm

(B) Sri. Niyogi

(C) Sri. A. K. Chanda

(D) Dr. Rajamnnar

6 / 32

6. Who appoints the Finance Commission of India? (University of Hyderabad MA 2020)

A. President

B. Finance Minister

C. Finance Secretary of India

D. Chief Economic Advisor to the Government of India

7 / 32

7. Who is the Chairman of the Fifteenth Finance Commission? (University of Hyderabad MA 2019)

A. C. Rangarajan

B. Vijay Kelkar

C. Y.V. Reddy

D. N.K. Singh

8 / 32

8. Which of the following statements are incorrect with regard to the Finance Commission? (NET December 2020 & June 2021 Paper-II)

A. The provision of Finance Commission has been mentioned in Article -280 of the Constitution.

B. Finance Commission shall consist of Chairman and two members.

C. Finance Commission submits its recommendations to the Parliament.

D. The Parliament is authorized to determine the qualifications for appointment as member of the commission.

Choose the correct answer from the options given below:

(a) A and B only

(b) A and D only

(c) B and C only

(d) C and D only

9 / 32

9. Which of the following are quasi-judicial bodies? (Presidency University Masters Entrance Questions 2017)

(1) Finance Commission

(2) Central Vigilance Commission

(3) National Human Rights Commission

(4) Central Information Commission

(5) Competition Commission of India

(6) Union Public Service Commission

(7) National Commission for SCs

(A) All except 1, 2 & 6

(B) All except 2, 4 & 6

(C) All except 6

(D) None of the above options are correct

10 / 32

10. Which of the following commission / committee recommended that finance commission should be a permanent body with its own secretariat? (RAJASTHAN SET 2020 PART 2)

(1) The First Administrative Reforms Commission

(2) The Sarkaria Commission

(3) The Rajamannar Committee

(4) The Second Administrative Reform Commission

11 / 32

11. The State Finance Commission is a: (BSTET 2024)

1. Legal body

2. Non-statutory body

3. Constitutional body

4. None of these

12 / 32

12. The State Finance Commission is a: (BSTET 2024)

1. Legal Body

2. Non-Statutory Body

3. Constitutional Body

4. None of these

13 / 32

13. Which institutions are supposed to be established under the 73rd and 74th Constitution Amendment Acts? (RAJASTHAN SET 2023)

(A) State Finance Commission, National Women’s Commission, District Planning Committee

(B) State Finance Commission, National Women’s Commission, Metropolitan Planning Committee

(C) State Finance Commission, National Women’s Commission, Election Commission

(D) State Finance Commission, District Planning Committee, Metropolitan Planning Committee

14 / 32

14. Which one of the following statements is incorrect about the functions of Finance Commission? (MAHARASHTRA SET 2016 PAPER III)

(A) Recommend distribution between the Union and the State of the net proceeds of taxes

(B) The principles to govern the grants-in-aid

(C) Matter referred by the President in the interest of sound finance

(D) To supervise the Planning Commission

15 / 32

15. Article 243 I of the Indian Constitution provides for the constitution of: (MAHARASHTRA SET 2019 PAPER II)

(A) Panchayat Raj Institutions

(B) Municipalities

(C) State Finance Commission

(D) State Election Commission

16 / 32

16. Finance Commission comes under which article of the Indian Constitution? (NET June 2024 Paper II)

(1) Art. 275

(2) Art. 270

(3) Art. 280

(4) Art. 285

17 / 32

17. Arrange the following Chairman of the Finance Commission in reverse chronological order: (NET June 2024 Paper II)

A. Santhanam

B. M. Khusro

C. Mahaveer Tyagi

D. K. Singh

E. B. Chavan

Choose the correct answer from the options given below:

(1) D, A, B, C, E

(2) C, E, D, A, B

(3) D, B, E, C, A

(4) E, D, C, B, A

18 / 32

18. Under Article 280(1), the President of India appoints: (KERALA SET 2015 DECEMBER)

A) Governor of a state

B) Finance Commission

C) Election Commission

D) Comptroller and Auditor General of India

19 / 32

19. Which commission suggested the creation of Local Finance Commission? (KERALA SET 2018 FEBRUARY)

A) Administrative Reforms Commission

B) Ashok Mehta Commission

C) G. V. K. Rao Commission

D) L. M. Singhvi Commission

20 / 32

20. The Article of the Indian Constitution under which Finance Commission is appointed: (KERALA SET 2020 FEBRUARY)

A) Article 280

B) Article 226

C) Article 141

D) Article 324

21 / 32

21. State Finance Commission is appointed by a State Government every five year to determine: (KERALA SET 2022 JULY)

A) Financial resources of the state for placing state’s requirements before the Union Government

B) Development requirements of the state for formulating State Five Year Plan

C) Budgetary requirements of various departments of the state government

D) Pattern of distribution of state’s tax revenue between the state government and local bodies (both rural and urban) and the pattern of grant-in-aid to local bodies

22 / 32

22. The first Finance Commission was constituted in: (NET December 2004)

(A) 1951

(B) 1962

(D) 1952

23 / 32

23. Arrange the following Chairmen of the Finance Commissions of India in chronological order and answer by using the code given below: (NET June 2011 Paper II)

(i) M. Khusro

(ii) K. P. Salve

(iii) Vijay Kelkar

(iv) C. Rangarajan

Codes:

(A) (i), (iii), (ii), (iv)

(B) (iv), (ii), (iii), (i)

(C) (ii), (i), (iv), (iii)

(D) (iii), (ii), (i), (iv)

24 / 32

24. The role of the Finance Commission in Centre-State fiscal relations has been undermined by the (NET December 2013 Paper II)

(a) The State Governments

(b) The Zonal Councils

(c) The Planning Commission

(d) The Election Commission

25 / 32

25. The Finance commission submits its report to (University of Hyderabad MA 2014)

A. The President

B. The Parliarnent

C. The Prime Minister

D. The Union Finance Minister

26 / 32

26. Which one of the following is not a recommendation of the 15th Finance Commission? (JMI M.A. 2023)

(a) The share of states in the central taxes for the 2021-26 period is recommended to be 41%,

(b) The Commission suggested that the centre bring down fiscal deficit to 4% of GDP by 2025-26.

(c) The grants to local bodies will be made available only to District level of the three-tier Panchayati Raj system.

(d) States should increase spending on health to more than 8% of their budget by 2022.

27 / 32

27. The Finance Commission is appointed every years or earlier? (JMI M.A. 2017)

A) 5

B) 7

C) 8

D) 9

28 / 32

28. Arrange the following in the ascending order of their establishmenth (NET November 2021 Shift II)

A. 14 Finance Commission of India

B. Union Public Service Commission

C. Central Vigilance Commission

D. NITI Aayog

Choose the correct answer from the options given below:

1. A, B, C, D

2. B, C, A, D

3. C, B, A, D

4. D, B, C, A

29 / 32

29. Under which Article of the Indian Constitution, formation of the Finance Commission is laid down? (NET August 2024 Shift II)

1. Article 269

2. Article 271.

3. Article 280

4. Article 289

30 / 32

30. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). (NET December 2008)

Assertion (A): State Governments are obliged to appoint a State Finance Commission

Reason (R): The quantum of money to be paid annually by the State Governments to the local bodies is determined by the State Finance Commission.

In the context of the above two statements which one of the following is correct?

(A) Both (A) and (R) are true and (R) is the correct explanation of (A)

(B) Both (A) and (R) are true but (R) is not a correct explanation of (A)

(C) (A) is true but (R) is false

(D) (A) is false but (R) is true

31 / 32

31. Match List – I and List – II and select the correct answer from codes given below: (NET June 2010 Paper II)

(A)

(B)

(C)

(D)

32 / 32

32. Match the LIST-I with LIST-II (NET June 2025)

A-IV, B-III, C-I, D-II

A-II, B-I, C-III, D-IV

A-I, B-IV, C-II, D-III

A-III, B-II, C-IV, D-I

Your score is

The average score is 33%

0%

Finance Commission	Year of establishment	Chairman	Operational duration
First	1951	K. C. Neogy	1952–57
Second	1956	K. Santhanam	1957–62
Third	1960	A. K. Chanda	1962–66
Fourth	1964	P. V. Rajamannar	1966–69
Fifth	1968	Mahavir Tyagi	1969–74
Sixth	1972	K. Brahmananda Reddy	1974–79
Seventh	1977	J. M. Shelat	1979–84
Eighth	1983	Y. B. Chavan	1984–89
Ninth	1987	N. K. P. Salve	1989–95
Tenth	1992	K. C. Pant	1995–00
Eleventh	1998	A. M. Khusro	2000–05
Twelfth	2002	C. Rangarajan	2005–10
Thirteenth	2007	Dr. Vijay L. Kelkar	2010–15
Fourteenth	2013	Dr. Y. V Reddy	2015–20
Fifteenth	2017	N. K. Singh	2020-21; 2021-26
Sixteenth	2023	Arvind Panagariya	2026 - 31

Report a question