Economics • Indian EconomyMedium
What is the principal constitutional mandate of the 'Finance Commission of India' constituted under Article 280?
A. To audit the annual accounts and expenditure records of union and state ministries
B. To recommend principles and formulas for the vertical and horizontal devolution of tax revenues between the union and states✓ Correct Answer
C. To formulate five-year economic development plans and allocate capital grants for public sector undertakings
D. To fix minimum support prices for agricultural commodities and regulate food grain procurement operations
💡 Solution & Explanation
The Finance Commission is a constitutional body appointed every five years by the President of India under Article 280 to recommend the distribution of tax proceeds between the center and states, as well as grants-in-aid principles. Audit functions are constitutionally vested in the Comptroller and Auditor General of India under Article 148. Planning functions were historically managed by the Planning Commission, later succeeded by NITI Aayog.
More Economics Indian Economy questions
- In the context of the Indian economy, what does the 'Current Account Deficit (CAD)' signify?
- Which of the following accounts for the largest share of India's total merchandise export basket in recent…
- What is the primary aim of the 'PM-SVANidhi' scheme?
- How is 'Fiscal Deficit' defined in the context of government finance and public debt management in India?
- What does the 'National Infrastructure Pipeline (NIP)' aim to achieve in the Indian economy?