Finance Commission - Political Science Coaching Centre

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 / 31

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

1. Legal body

2. Non-statutory body

3. Constitutional body

4. None of these

12 / 31

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

1. Legal Body

2. Non-Statutory Body

3. Constitutional Body

4. None of these

13 / 31

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

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

14 / 31

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

(D) To supervise the Planning Commission

15 / 31

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

(A) Panchayat Raj Institutions

(B) Municipalities

(D) State Election Commission

16 / 31

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 / 31

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 / 31

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 / 31

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 / 31

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 / 31

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 / 31

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

(A) 1951

(B) 1962

(D) 1952

23 / 31

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)

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

24 / 31

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

(d) The Election Commission

25 / 31

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 / 31

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.

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

27 / 31

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

A) 5

B) 7

C) 8

D) 9

28 / 31

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 / 31

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 / 31

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)

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

Explanation:

Assertion (A) is true because the State Governments are obliged to appoint a State Finance Commission (SFC) under Article 243-I of the Constitution of India. The SFC is responsible for reviewing the financial position of local bodies (both Panchayats and Municipalities) and making recommendations to the Governor regarding the distribution of financial resources between the state and local bodies.
Reason (R) is false because the quantum of money to be paid annually to the local bodies is not directly determined by the State Finance Commission. The SFC only makes recommendations to the state government on how to allocate funds between the state and local bodies. The actual decision on fund allocation is taken by the state government, based on these recommendations, but it is not obliged to follow them fully.

Hence, while the SFC plays an advisory role, it does not directly determine the amount of money to be paid to local bodies.

31 / 31

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)

Your score is

The average score is 43%

Join the conversation

0% Complete