MasteryExams
Economics • Indian EconomyEasy

What is the primary mandate of the 'Fifteenth Finance Commission' headed by N.K. Singh?

A. To recommend the tax devolution formula and principles for grants-in-aid between the Centre and States.✓ Correct Answer
B. To audit the implementation of central welfare schemes in tribal districts.
C. To fix the minimum support prices for kharif and rabi crops.
D. To regulate foreign portfolio investments in Indian equity markets.

💡 Solution & Explanation

The Fifteenth Finance Commission was constituted under Article 280 to recommend the vertical and horizontal tax devolution formula and principles for grants-in-aid between the Union and States. Other administrative bodies like the Commission for Agricultural Costs and Prices fix minimum support prices for crops. Such constitutional bodies ensure cooperative federalism in financial matters.

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