Home PYQs UPPSC UPPSC MCQs Prelims 1993 (GS Paper I)

Question

Main function of Finance commission is

  1. The distribution between the union and the states of the net proceeds of taxes which are to be, or may be, divided between them
  2. Financial control over states
  3. Financial control over centre
  4. None of these

Answer:

Option A: The distribution between the union and the states of the net proceeds of taxes which are to be, or may be, divided between them

Detailed Solution:

The correct answer is “The distribution between the union and the states of the net proceeds of taxes which are to be, or may be, divided between them”.

The Finance Commission of India (FCI) is a constitutional body that makes recommendations on how to distribute tax revenues between the Union and the States, and among the States themselves.