Consider the following statements:
- Governor places reports of Central Finance Commission before State Legislature.
- Central Finance Commission suggests the measures to increase the Consolidated Fund of the State.
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
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.