Multiple choice

Central-State financial distribution takes place following recommendations made by the

  1. Finance Minister

  2. Finance Commission

  3. Planning Commission

  4. Sarkaria Commission
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Planning Commission (now replaced by NITI Aayog) was responsible for making recommendations on the distribution of financial resources between the Centre and the States as part of the Five Year Plan process. While the Finance Commission deals with tax-sharing, the Planning Commission oversaw developmental expenditure and plan-based distribution.

Keep practicing — related questions