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With reference to the Finance Commission, consider the following statements:
  1. Finance Commission is constituted every year by the President under article 280 of the Constitution.
  2. Recommendations of the Finance Commission are binding on the government.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
With reference to the Finance Commission, consider the following state...
The Central government will soon start off the process to set up the Sixteenth Finance Commission, with the Finance Ministry likely to notify the terms of references for the Finance Commission.
About Finance Commission:
  • What is it? It is constitutional body for giving recommendations on distribution of tax revenues between the Union and the States and amongst the States themselves.
  • Who constitutes? The Finance Commission is constituted by the President under article 280 of the Constitution.
  • It is constituted at the end of every fifth year or earlier, as the deemed necessary by the President.
  • CompositionIt consists of a Chairman and four other members appointed by the President.
  • Tenure of members: Every member will be in office for the time period as specified in the order of the President and is eligible for reappointment.
  • Recommendations of the Finance Commission are not binding on the government.
Hence both statements are not correct.
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With reference to the Finance Commission, consider the following statements: Finance Commission is constituted every year by the President under article 280 of the Constitution. Recommendationsof the Finance Commission are bindingon the government.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?
Question Description
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