Home PYQs UPPSC UPPSC MCQs Prelims 2021 (GS Paper I)

Question

The primary duty of the Finance Commission of India is ?

  1. To give the recommendations on the distribution of tax revenue between the Union and States
  2. To prepare the Union Annual Budget
  3. To advise the President on financial matters
  4. Te allocate funds to various Ministries/Departments of the Union and State Governments

Answer:

Option A: To give the recommendations on the distribution of tax revenue between the Union and States

Detailed Solution:

The correct answer is “To give the recommendations on the distribution of tax revenue between the Union and States”.

The Finance Commission is established under Article 280 of the Indian Constitution and is primarily responsible for:

1) Recommending the distribution of tax revenues between the Union and State governments.
2) Determining the principles for allocating resources among states.