Question

Which of the following statements about Finance Commission of India are true?

i. It is appointed under article 280 of the Indian constitution.

ii. It is appointed in every five years.

iii. The current Chairman of Finance Commission is Y. V. Reddy.

Iv. It is formed to recommend the budgetary allocations to only the central government.

1. Only i & ii are correct
2. Only ii & iv are correct
3. Only i & iv are correct
4. Only i & iii are correct

Answer 1

Correct Answer - Option 1 : Only i & ii are correct

The correct answer is Only i & ii are correct.

• The Finance Commission is a constitutional body.
• Art. 280 of the Constitution of India provides for the Finance Commission of India.
• It is a Quasi-judicial body.
• It is appointed by the president every 5 years.
• The Finance Commission consists of a chairman and four other members.
• The function of finance is to recommend how the Central government should share taxes levied by it with the states.
• The recommendations made by the finance commissions are only advisory and not binding to the government.
• Y.V reddy was the 14^th Chairman of the Finance committee.

• The 15^th Chairman of the Finance Commission of India is N.K. Singh.
• Articles related to the Finance commission are 
  • Art. 280: Finance commission
  • Art. 281: Recommendations of the Finance Commission