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Consider the following statements regarding the Centre-State financial relations in India:
1. The Finance Commission of India is appointed by the President every five years to recommend the distribution of tax revenues between the Centre and the States.
2. During a national emergency, the President can modify the financial distribution between the Centre and the States as per Article 352.
3. The Goods and Services Tax Council, formed under Article 279-A, primarily focuses on the distribution of GST revenues between the Centre and the States.
Which of the statements given above is/are correct?
- a)1 Only
- b)1 and 2 Only
- c)1 and 3 Only
- d)1, 2 and 3
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Consider the following statements regarding the Centre-State financia...
1. Statement 1 is correct. The Finance Commission is indeed appointed by the President of India every five years or earlier, as needed, to recommend how the net proceeds of taxes should be distributed between the Centre and the States. This is a fundamental aspect of fiscal federalism in India enshrined under Article 280 of the Constitution.
2. Statement 2 is correct. During a national emergency declared under Article 352, the President of India has the power to modify the constitutional distribution of financial resources between the Centre and the States. This includes altering the sharing of taxes and grants, which remains effective throughout the financial year when the emergency is in operation.
3. Statement 3 is incorrect. The GST Council, established under Article 279-A, is a constitutional body responsible for making recommendations to the Union and States on issues related to GST, including tax rates, exemptions, and model GST laws. While it plays a role in the GST framework's functioning, its primary focus is not solely on revenue distribution but on creating a harmonized tax system across India.
Therefore, the correct statements are 1 and 2, making Option B the accurate choice.
Most Upvoted Answer
Consider the following statements regarding the Centre-State financia...
Overview of Centre-State Financial Relations
In India, the financial relations between the Centre and the States are governed by various constitutional provisions and institutional frameworks. Let’s analyze the correctness of the given statements.
Statement 1: Finance Commission's Role
- The Finance Commission is indeed appointed by the President of India every five years.
- Its primary function is to recommend the distribution of tax revenues between the Centre and the States.
- Conclusion: This statement is correct.
Statement 2: Financial Distribution during National Emergency
- Article 352 deals with the proclamation of a national emergency but does not specifically address modifications of financial distribution.
- Instead, Article 356 provides the President with the authority to assume control of the State’s finances during an emergency, which can lead to changes in financial distribution.
- Conclusion: This statement is incorrect.
Statement 3: Goods and Services Tax (GST) Council
- The GST Council is constituted under Article 279-A, and its primary function is to make recommendations on various aspects of the GST, including the distribution of GST revenues between the Centre and the States.
- Conclusion: This statement is correct.
Final Assessment
- Based on the analysis, statements 1 and 3 are correct, while statement 2 is incorrect.
- Correct answer: Option 'B' (1 and 3 only).
In India, the financial relations between the Centre and the States are governed by various constitutional provisions and institutional frameworks. Let’s analyze the correctness of the given statements.
Statement 1: Finance Commission's Role
- The Finance Commission is indeed appointed by the President of India every five years.
- Its primary function is to recommend the distribution of tax revenues between the Centre and the States.
- Conclusion: This statement is correct.
Statement 2: Financial Distribution during National Emergency
- Article 352 deals with the proclamation of a national emergency but does not specifically address modifications of financial distribution.
- Instead, Article 356 provides the President with the authority to assume control of the State’s finances during an emergency, which can lead to changes in financial distribution.
- Conclusion: This statement is incorrect.
Statement 3: Goods and Services Tax (GST) Council
- The GST Council is constituted under Article 279-A, and its primary function is to make recommendations on various aspects of the GST, including the distribution of GST revenues between the Centre and the States.
- Conclusion: This statement is correct.
Final Assessment
- Based on the analysis, statements 1 and 3 are correct, while statement 2 is incorrect.
- Correct answer: Option 'B' (1 and 3 only).
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Consider the following statements regarding the Centre-State financial relations in India:1. The Finance Commission of India is appointed by the President every five years to recommend the distribution of tax revenues between the Centre and the States.2. During a national emergency, the President can modify the financial distribution between the Centre and the States as per Article 352.3. The Goods and Services Tax Council, formed under Article 279-A, primarily focuses on the distribution of GST revenues between the Centre and the States.Which of the statements given above is/are correct?a)1 Onlyb)1 and 2 Onlyc)1 and 3 Onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer?
Question Description
Consider the following statements regarding the Centre-State financial relations in India:1. The Finance Commission of India is appointed by the President every five years to recommend the distribution of tax revenues between the Centre and the States.2. During a national emergency, the President can modify the financial distribution between the Centre and the States as per Article 352.3. The Goods and Services Tax Council, formed under Article 279-A, primarily focuses on the distribution of GST revenues between the Centre and the States.Which of the statements given above is/are correct?a)1 Onlyb)1 and 2 Onlyc)1 and 3 Onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding the Centre-State financial relations in India:1. The Finance Commission of India is appointed by the President every five years to recommend the distribution of tax revenues between the Centre and the States.2. During a national emergency, the President can modify the financial distribution between the Centre and the States as per Article 352.3. The Goods and Services Tax Council, formed under Article 279-A, primarily focuses on the distribution of GST revenues between the Centre and the States.Which of the statements given above is/are correct?a)1 Onlyb)1 and 2 Onlyc)1 and 3 Onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding the Centre-State financial relations in India:1. The Finance Commission of India is appointed by the President every five years to recommend the distribution of tax revenues between the Centre and the States.2. During a national emergency, the President can modify the financial distribution between the Centre and the States as per Article 352.3. The Goods and Services Tax Council, formed under Article 279-A, primarily focuses on the distribution of GST revenues between the Centre and the States.Which of the statements given above is/are correct?a)1 Onlyb)1 and 2 Onlyc)1 and 3 Onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer?.
Consider the following statements regarding the Centre-State financial relations in India:1. The Finance Commission of India is appointed by the President every five years to recommend the distribution of tax revenues between the Centre and the States.2. During a national emergency, the President can modify the financial distribution between the Centre and the States as per Article 352.3. The Goods and Services Tax Council, formed under Article 279-A, primarily focuses on the distribution of GST revenues between the Centre and the States.Which of the statements given above is/are correct?a)1 Onlyb)1 and 2 Onlyc)1 and 3 Onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding the Centre-State financial relations in India:1. The Finance Commission of India is appointed by the President every five years to recommend the distribution of tax revenues between the Centre and the States.2. During a national emergency, the President can modify the financial distribution between the Centre and the States as per Article 352.3. The Goods and Services Tax Council, formed under Article 279-A, primarily focuses on the distribution of GST revenues between the Centre and the States.Which of the statements given above is/are correct?a)1 Onlyb)1 and 2 Onlyc)1 and 3 Onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding the Centre-State financial relations in India:1. The Finance Commission of India is appointed by the President every five years to recommend the distribution of tax revenues between the Centre and the States.2. During a national emergency, the President can modify the financial distribution between the Centre and the States as per Article 352.3. The Goods and Services Tax Council, formed under Article 279-A, primarily focuses on the distribution of GST revenues between the Centre and the States.Which of the statements given above is/are correct?a)1 Onlyb)1 and 2 Onlyc)1 and 3 Onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer?.
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