Consider the following statements:
- Governor constitutes the State Finance Commission once in every 5 years.
- Governor provides the composition of State Finance Commission.
Which of the following statements is/are correct?
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Only 1
-
Only 2
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Both 1 and 2
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Neither of 1 and 2
A
Correct answer
Explanation
Statement 1: It is correct. Governor of a state after every 5 years constitute a finance commission to review the financial position of the panchayats.
Statement 2: It is incorrect. The state legislature may provide for the composition of the commission, the required qualification of its members and the manner of their selection.