All questions of Finance Commission for UPSC CSE Exam

The advisory nature of the recommendations made by the Finance Commission refers to the fact that the government is not legally obligated to follow or implement all the recommendations given by the commission. The correct answer is option 'D' - the government can consider the recommendations but is not obligated to follow them.

Explanation:
1. The Finance Commission is a constitutional body that is established every five years to make recommendations on the distribution of financial resources between the central government and the state governments.
2. The recommendations made by the Finance Commission are related to various aspects of fiscal federalism, such as the distribution of tax revenues, grants-in-aid, and other financial transfers between the center and the states.
3. These recommendations are based on the assessment of the financial needs and resources of both the center and the states, and they aim to promote fiscal stability, equity, and efficiency in the financial relations between the two levels of government.
4. However, it is important to note that the recommendations made by the Finance Commission are not legally binding on the government.
5. The government has the discretion to consider the recommendations and decide whether or not to implement them.
6. The government's decision on whether to implement the recommendations depends on various factors, including its own fiscal priorities, political considerations, and the overall economic situation.
7. It is worth mentioning that while the government is not legally obligated to follow the recommendations, it generally gives due consideration to them as they are based on a comprehensive and objective assessment of the financial needs and resources of the center and the states.
8. The Finance Commission plays a crucial role in promoting cooperative federalism by facilitating a dialogue and negotiation between the center and the states on financial matters.
9. The government's response to the recommendations of the Finance Commission is typically communicated through the Union Budget, where the government presents its fiscal policies and allocations for various sectors and programs.
10. In summary, the advisory nature of the recommendations made by the Finance Commission means that the government has the discretion to consider the recommendations but is not legally bound to follow them.

The primary responsibility of the Finance Commission is to distribute tax proceeds between the Centre and the states, as stated in the text.

The primary purpose of the Finance Commission of India, as mentioned in the text, is to distribute tax proceeds between the central and state governments. This function helps define the financial relations between the Centre and the states.

The Chairman of the Finance Commission should have experience in public affairs, as stated in the text. This qualification is essential for the role.

The Finance Commission consists of a Chairman and four other members, as mentioned in the text.

The term of office for members of the Finance Commission is determined by the President and specified in some cases. The Parliament also has a role in determining their qualifications and selection, as per the text.

The Finance Commission of India is constituted every 5 years, as per the text provided. It is formed to review and recommend the distribution of tax proceeds and other financial matters.

One of the mandates of the 15th Finance Commission, as stated in the text, is to assess the impact of GST (Goods and Services Tax) on revenues.