Economics • Indian EconomyEasy
What is the primary constitutional mandate of the Finance Commission of India constituted under Article 280 of the Constitution?
A. To recommend the vertical and horizontal distribution of net tax proceeds between the Union and the States✓ Correct Answer
B. To formulate the annual national budget estimates and oversee direct tax collection targets
C. To audit the public accounts of central government ministries and autonomous statutory corporations
D. To fix statutory minimum wages for industrial workers across organized manufacturing sectors
💡 Solution & Explanation
Article 280 of the Indian Constitution mandates the appointment of a Finance Commission every five years by the President to recommend the principles governing the division of tax revenues between the union government and state governments. It also suggests grants-in-aid to states from the consolidated fund of India. The Comptroller and Auditor General of India performs the audit functions for government accounts.
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