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Which body is constituted by the President of India to advice on the decision of Central Resources between the centre and the state?
  • a)
    Tariff Commission
  • b)
    Finance Commission
  • c)
    Planning Commission
  • d)
    Taxation Enquiry commission
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Which body is constituted by the President of India to advice on the ...
The Finance Commission of India came into existence in 1951. It was established under Article 280 of the Indian Constitution by the President of India. It was formed to define the financial relations between the centre and the state.
Functions of the Finance Commission can be explicitly stated as:
  1. Distribution of net proceeds of taxes between Centre and the States, to be divided as per their respective contributions to the taxes.
  2. Determine factors governing Grants-in Aid to the states and the magnitude of the same.
  3. To make recommendations to president as to the measures needed to augment the Consolidated Fund of a State to supplement the resources of the panchayats and municipalities in the state on the basis of the recommendations made by the Finance Commission of the state.
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Which body is constituted by the President of India to advice on the decision of Central Resources between the centre and the state?a)Tariff Commissionb)Finance Commissionc)Planning Commissiond)Taxation Enquiry commissionCorrect answer is option 'B'. Can you explain this answer?
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