Home PYQs UPPSC UPPSC MCQs Prelims 2006 (GS Paper I)

Question

The Finance Commission is primarily concerned with recommending to the President about:

  1. The principle governing grants-in-aid to be given to the states
  2. Distributing the net proceeds of the taxes between the centre and the states
  3. Niether (1) nor (2)
  4. Both (1) and (2)

Answer:

Option D: Both (1) and (2)

Detailed Solution:

The correct answer is “Both (1) and (2)”.

The Finance Commission is mainly concerned with recommending to the President about both the distribution of net proceeds of taxes between the Centre and the States, and the principles governing the grants-in-aid to be given to the States.