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Consider the following statements.
1. In a democracy, all authority eventually belongs to the people.
2. The Finance Commission (FC) is a legally mandated body charged with balancing revenue and expenditure powers.
3. Because of the increased surcharges and cesses, the divisible pool's relative size from Centre to the state has shrunk substantially in the 15th FC recommendations.
Which of the above statements is/are correct?
  • a)
    1, 2
  • b)
    1, 3
  • c)
    1, 2, 3
  • d)
    1 only
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Consider the following statements.1. In a democracy, all authority eve...
  • All power in a democracy ultimately belongs to the country's people. In India, one constitutionally mandated body that is designed to deliver on this promise, in a manner that balances revenue power with expenditure responsibilities, is the Finance Commission (FC). 
  • The FC is constituted every five years and its scope is set out each time in a document called the Terms of Reference (ToR). It is received political tradition for the incumbent government to accept the FC's recommendations once they are tabled.
  • The 15th FC devolves 41% of the Centre's divisible pool of revenues to states. This number is exactly the same as that recommended by the previous FC (with an adjustment for Jammu and Kashmir's new status as a Union Territory). 
  • However, there is material shrinkage in the relative size of the divisible pool because surcharges and cesses, which are not counted in that pool, have increased materially from about 10% of the total pool in 2010 to about 20%.
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Consider the following statements.1. In a democracy, all authority eventually belongs to the people.2. The Finance Commission (FC) is a legally mandated body charged with balancing revenue and expenditure powers.3. Because of the increased surcharges and cesses, the divisible pools relative size from Centre to the state has shrunk substantially in the 15th FC recommendations.Which of the above statements is/are correct?a)1, 2b)1, 3c)1, 2, 3d)1 onlyCorrect answer is option 'C'. Can you explain this answer?
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Consider the following statements.1. In a democracy, all authority eventually belongs to the people.2. The Finance Commission (FC) is a legally mandated body charged with balancing revenue and expenditure powers.3. Because of the increased surcharges and cesses, the divisible pools relative size from Centre to the state has shrunk substantially in the 15th FC recommendations.Which of the above statements is/are correct?a)1, 2b)1, 3c)1, 2, 3d)1 onlyCorrect answer is option 'C'. Can you explain this answer? for Current Affairs 2024 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about Consider the following statements.1. In a democracy, all authority eventually belongs to the people.2. The Finance Commission (FC) is a legally mandated body charged with balancing revenue and expenditure powers.3. Because of the increased surcharges and cesses, the divisible pools relative size from Centre to the state has shrunk substantially in the 15th FC recommendations.Which of the above statements is/are correct?a)1, 2b)1, 3c)1, 2, 3d)1 onlyCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Current Affairs 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements.1. In a democracy, all authority eventually belongs to the people.2. The Finance Commission (FC) is a legally mandated body charged with balancing revenue and expenditure powers.3. Because of the increased surcharges and cesses, the divisible pools relative size from Centre to the state has shrunk substantially in the 15th FC recommendations.Which of the above statements is/are correct?a)1, 2b)1, 3c)1, 2, 3d)1 onlyCorrect answer is option 'C'. Can you explain this answer?.
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