Correct Answer - Option 1 : Article 280
- The Finance Commission is a Constitutionally mandated body that is at the centre of fiscal federalism.
- Set up under Article 280 of the Constitution, 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.
- Its working is characterised by extensive and intensive consultations with all levels of governments, thus strengthening the principle of cooperative federalism. Its recommendations are also geared towards improving the quality of public spending and promoting fiscal stability.
- The first Finance Commission was set up in 1951 and there have been fifteen so far. Each of them has faced its own unique set of challenges.
- The Fifteenth Finance Commission was constituted on 27 November 2017 against the backdrop of the abolition of Planning Commission (as also of the distinction between Plan and non-Plan expenditure) and the introduction of the goods and services tax (GST), which has fundamentally redefined federal fiscal relations.
- Chairman of 15th Finance Commission of India is Shri N.K. Singh.
Sharing of the proceeds of all Union taxes between the Centre and the States under Article 270.
Article 180 in the Constitution Of India- Power of the Deputy Speaker or other person to perform the duties of the office of, or to act as, Speaker
