Question

Consider the following statements and select the correct answer from the code given below:

Assertion (A): State Finance Commission is a constitutional body.
Reason (R): Union Finance Commission cannot recommend financial assistance to panchayats.

Codes:

  1. Both (A) and (R) are true and (R) is correct explanation of (A)
  2. Both (A) and (R) are true, but (R) is not the correct explanation of (A)
  3. (A) is true, but (R) is false
  4. (A) is false, but (R) is true

Answer:

Option B: Both (A) and (R) are true, but (R) is not the correct explanation of (A)

Detailed Solution:

The correct answer is “Both (A) and (R) are true, but (R) is not the correct explanation of (A)”.

The State Finance Commission is indeed a constitutional body. The Union Finance Commission does not deal with panchayats directly; this function is specifically within the domain of the State Finance Commission.