Multiple choice

Consider the following statements:

  1. Governor places reports of Central Finance Commission before State Legislature.
  2. Central Finance Commission suggests the measures to increase the Consolidated Fund of the State.

Which of the following statements is/are correct?

  1. Only 1

  2. Only 2

  3. Both 1 and 2

  4. Neither of 1 and 2

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Statement 1: It is incorrect. Governor of a state places the recommendations of the state finance commission (and not central finance commission) constituted by him along with the action taken report before the state legislature. Statement 2: It is correct. Central finance commission suggests the measures needed to augment the consolidated fund of state to supplement the resources of the panchayats of the state.