Economics • Indian EconomyMedium
What is the primary constitutional mandate of the Finance Commission of India constituted under Article 280?
A. To audit accounts of public sector undertakings and submit reports to the Comptroller and Auditor General
B. To recommend the distribution of net proceeds of taxes between the Union and States and among the States inter se✓ Correct Answer
C. To formulate national economic plans and allocate capital grants for infrastructure development
D. To regulate foreign direct investment inflows and monitor compliance with exchange control laws
💡 Solution & Explanation
Article 280 of the Constitution provides for the establishment of a Finance Commission every five years or earlier to recommend principles governing the vertical and horizontal devolution of tax revenues between the Union and States. It also recommends measures needed to augment the Consolidated Fund of a State to supplement resources of panchayats and municipalities. The recommendations of the Finance Commission are advisory in nature, though conventionally accepted by the government. The Comptroller and Auditor General audits public accounts under Article 148.
More Economics Indian Economy questions
- What does the term 'Fiscal Deficit' represent in the union budget?
- What is the primary purpose of the 'National Infrastructure Pipeline (NIP)' in India?
- What is the core economic purpose of the 'PM-SVANidhi' scheme as implemented across urban local bodies in…
- What is the main mandate of the 'Commission for Agricultural Costs and Prices (CACP)' in India?
- What does 'Fiscal Deficit' signify in the framework of government public finance?