GK
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It encourages the inflow of foreign capital for infrastructure development
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It facilitates the proper distribution of finance among the public sector undertakings
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It ensures transparency in financial administration
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None of the above
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Detailed explanation-1: -The correct answer is None of the statements (a), (b) and (c) given above is correct in this context. Finance Commission: Finance Commission is a constitutional body. Finance Commission was constituted to recommend the distribution of the net proceeds of taxes between the Centre and states, and among the states.
Detailed explanation-2: -Explanation: The Finance Commission is a constitutional body for the purpose of allocation of certain revenue resources between the Union and the State Governments. It was established under Article 280 of the Indian Constitution by the Indian President.
Detailed explanation-3: -Thus, Finance Commission shall consist of Chairman and two members and Finance Commission submits its recommendations to the Parliament are incorrect with regard to Finance Commission.
Detailed explanation-4: -The commission is constituted to make recommendations to the president about the distribution of the net proceeds of taxes between the Union and States and also the allocation of the same among the States themselves.