Multiple choice

On which of the following subjects does the Finance Commission of a State Constituted under the Part IX of the Constitution of India make recommendations to the Governor?

  1. Distribution between the state and the panchayat of the net proceeds of the taxes by the state
  2. Determination of the taxes which may be assigned to, or appropriated by the panchayats.
  3. Grants-in-aid to the panchayats from the Consolidated Fund of the state. Select the correct answer using the code given below:

  1. 1, 2 and 3

  2. 1 and 2 only

  3. 2 and 3 only

  4. 1 and 3 only
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The State Finance Commission, constituted under Article 243-I, makes recommendations regarding the distribution of tax proceeds between the State and Panchayats. It also advises on the taxes to be assigned to Panchayats and the grants-in-aid to be provided from the Consolidated Fund of the State.

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