Which body is responsible for recommending the formula for the vertical and horizontal devolution of tax revenues between the Union and the States in India?

💡 Solution & Explanation

The Finance Commission of India is a constitutional body established by the President under Article 280 to recommend the principles and formula for sharing tax revenues between the Union government and the states. It ensures cooperative federalism by addressing fiscal imbalances. Bodies like NITI Aayog are executive think tanks without statutory tax-devolution powers, while the GST Council deals specifically with indirect tax administration. Polity questions frequently examine the distinct constitutional mandate of Article 280.