Multiple choice

Consider the following:

  1. There is an overlapping of functions between Planning and Finance Commission.
  2. Finance Commission's primary objective is distribution of revenue and grants among the states.
  3. Defence affairs are included in Planning Commission. Which of the following statements is / are correct?

  1. Only 1

  2. 1 and 2

  3. 2 and 3

  4. 1, 2 and 3
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Statement 1 is correct. The overlapping work and responsibilities between the finance and planning commission have been criticized.

Statement 2 is correct. The main function of Finance Commission is in determining the revenue gap in each state and to fill such gaps it provides schemes of devolution partly by distribution of taxes and duties and partly by grants-in-aid. Statement 3 is wrong. Planning commission does not deal with defence and foreign affairs.

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