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Consider the following statements with regard to the Finance Commission mentioned under Article 280 of the Indian Constitution:
1. It is mandatory for the Parliament to set up a finance commission at the expiry of every fifth year.
2. It should consist of a chairman and not more than three other members. 
3. Qualifications of the members of the Commission are determined by the Parliament.
Which of the statements given above is/are correct?
  • a)
    1 and 2 only
  • b)
    1 and 3 only
  • c)
    2 and 3 only
  • d)
    3 only
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements withregard to the Finance Commission...
  • Article 280 of the Constitution of India: The President shall, within two years from the commencement of this Constitution and thereafter at the expiration of every fifth year or at such earlier time as the President considers necessary, by order constitute a Finance Commission which shall consist of a Chairman and four other members to be appointed by the President. Hence statements 1 and 2 are not correct.
  • Parliament may by law determine the qualifications which shall be requisite for appointment as members of the Commission and the manner in which they shall be selected. Hence statement 3 is correct.
  • It shall be the duty of the Commission to make recommendations to the President as to—
    • the distribution between the Union and the States of the net proceeds of taxes which are to be, or maybe, divided between them under this Chapter and the allocation between the States of the respective shares of such proceeds;
    • the principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India;
  • The recommendations made by the Finance Commission are only of advisory nature and hence, not binding on the government. It is up to the Union government to implement its recommendations on granting money to the states.
  • The Commission can determine its procedure and in the performance of its functions can have all the powers of a civil court under the Code of Civil Procedure, 1908.
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Community Answer
Consider the following statements withregard to the Finance Commission...

Qualifications of the members of the Finance Commission:

- The statement that the qualifications of the members of the Finance Commission are determined by the Parliament is correct.
- The members of the Finance Commission are appointed by the President of India, and the Parliament determines their qualifications.

Therefore, the correct answer is option 'D', which states that the third statement is correct.
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Consider the following statements withregard to the Finance Commission mentionedunder Article 280 of the Indian Constitution:1. It is mandatory for the Parliament to setup a finance commission at the expiry ofevery fifth year.2. It should consist of a chairman and notmore than three other members.3. Qualifications of the members of theCommission are determined by theParliament.Which of the statements given above is/arecorrect?a)1 and 2 onlyb)1 and 3 onlyc)2 and 3 onlyd)3 onlyCorrect answer is option 'D'. Can you explain this answer?
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