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What is the main function of the Finance Commission?
  • a)
    To manage the budget of the central government
  • b)
    To regulate the stock market
  • c)
    To make recommendations on the distribution of net proceeds of taxes between the Centre and the states
  • d)
    To monitor the expenditure of the government
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
What is the main function of the Finance Commission?a)To manage the bu...
The Finance Commission is required to make recommendations to the President of India on matters such as the distribution of the net proceeds of taxes to be shared between the Centre and the states, the principles that should govern the grants-in-aid to the states by the Centre, and the measures needed to augment the consolidated fund of a state to supplement the resources of the panchayats and the municipalities.
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What is the main function of the Finance Commission?a)To manage the budget of the central governmentb)To regulate the stock marketc)To make recommendations on the distribution of net proceeds of taxes between the Centre and the statesd)To monitor the expenditure of the governmentCorrect answer is option 'C'. Can you explain this answer?
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