Question

The Finance Commission is constituted by the President:
1. at the expiration of every sixth year
2. at the expiration of every tenth year
3. at the expiration of every seventh year
4. at the expiration of every fifth year

Answer 1

Correct Answer - Option 4 : at the expiration of every fifth year

The correct answer is at the expiration of every fifth year.

• The Finance Commission is constituted by the President under article 280 of the Constitution, mainly to give its recommendations on the distribution of tax revenues between the Union and the States and amongst the States themselves.
  
• Finance Commission is a constitutional body for the purpose of allocation of certain revenue resources between the Union and the State Governments.
• It was established under Article 280 of the Indian Constitution by the Indian President.
• It was created to define the financial relations between the Centre and the states.
• It was formed in 1951.
• Shri Ajay Narayan Jha recently joined the Fifteenth Finance Commission as its member.
• The 15th Finance Commission has released a report titled ‘Finance Commission in COVID Times’ on 1st February 2021.