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In the context of the Finance Commission, consider the following statements:
It is constituted by the President under the Article 270 of the Constitution.
  • First Finance Commission was constituted under the chairmanship of Shri K.C. Neogy.
  • It recommends the sharing of taxes between Union and State Governments.
    Which of the statements given above is/are correct?
    • a)
      1 and 2 Only
    • b)
      2 and 3 Only
    • c)
      1 and 3 Only
    • d)
      1, 2 and 3
    Correct answer is option 'B'. Can you explain this answer?
    Most Upvoted Answer
    In the context of the Finance Commission, consider the following stat...
    The correct answer is option 'B' - 2 and 3 Only.

    Explanation:
    - The Finance Commission is a constitutional body that is constituted by the President of India under Article 280 of the Constitution, not Article 270 as mentioned in statement 1. Article 270 deals with the distribution of taxes between the Union and the States.
    - The First Finance Commission of India was constituted in 1951 under the chairmanship of Shri K.C. Neogy, which makes statement 2 correct.
    - The main function of the Finance Commission is to recommend the sharing of taxes between the Union and State Governments. This includes the distribution of revenue from taxes such as income tax, customs duties, and excise duties. Therefore, statement 3 is correct.

    To summarize:
    - Statement 1 is incorrect as the Finance Commission is constituted by the President under Article 280, not Article 270.
    - Statement 2 is correct as the First Finance Commission was indeed constituted under the chairmanship of Shri K.C. Neogy.
    - Statement 3 is correct as the Finance Commission recommends the sharing of taxes between the Union and State Governments.

    Hence, the correct answer is option 'B' - 2 and 3 Only.
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    Community Answer
    In the context of the Finance Commission, consider the following stat...
    • In News: The government will soon start the process of setting up the Sixteenth Finance Commission, with the Finance Ministry likely to notify the terms of references for the constitutional body.
    • Statement 1 is not correct: Finance Commission is a Constitutionally mandated body that is at the center of fiscal federalism. It is constituted by the President under Article 280 of the Constitution.
    • Statements 2 and 3 are correct: The First Finance Commission was constituted vide Presidential Order dated 22.11.1951 under the chairmanship of Shri K.C. Neogy on 6th April 1952. Fifteenth Finance Commissions have been Constituted so far at intervals of every five years. Its core responsibility is to evaluate the state of finances of the Union and State Governments, recommend the sharing of taxes between them, lay down the principles determining the distribution of these taxes among States.
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    In the context of the Finance Commission, consider the following statements: It is constituted by the President under the Article 270 of the Constitution. First Finance Commission was constituted under the chairmanship of Shri K.C. Neogy. It recommends the sharing of taxes between Union and State Governments. Which of the statements given above is/are correct?a)1 and 2 Onlyb)2 and 3 Onlyc)1 and 3 Onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer?
    Question Description
    In the context of the Finance Commission, consider the following statements: It is constituted by the President under the Article 270 of the Constitution. First Finance Commission was constituted under the chairmanship of Shri K.C. Neogy. It recommends the sharing of taxes between Union and State Governments. Which of the statements given above is/are correct?a)1 and 2 Onlyb)2 and 3 Onlyc)1 and 3 Onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about In the context of the Finance Commission, consider the following statements: It is constituted by the President under the Article 270 of the Constitution. First Finance Commission was constituted under the chairmanship of Shri K.C. Neogy. It recommends the sharing of taxes between Union and State Governments. Which of the statements given above is/are correct?a)1 and 2 Onlyb)2 and 3 Onlyc)1 and 3 Onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the context of the Finance Commission, consider the following statements: It is constituted by the President under the Article 270 of the Constitution. First Finance Commission was constituted under the chairmanship of Shri K.C. Neogy. It recommends the sharing of taxes between Union and State Governments. Which of the statements given above is/are correct?a)1 and 2 Onlyb)2 and 3 Onlyc)1 and 3 Onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer?.
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