Multiple choice

Which of the following plays the most important role in the distribution of revenue between Centre and the States?

  1. Planning Commission

  2. Finance Commission

  3. Inter State Council

  4. National Development Council

  5. Election commission
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Finance Commission is a constitutional body that recommends the distribution of financial resources between the Centre and States. It is constituted every five years and plays the most important role in determining the revenue-sharing formula. The Planning Commission (now NITI Aayog) deals with planning, while Inter State Council and National Development Council have different advisory functions.

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