Multiple choice

The Finance Commission is mainly concerned with recommending the President about

  1. distributing net proceeds of taxes between the Centre and the States

  2. principles governing the grants-in-aid to be given to States

  3. Both 1 and 2

  4. Neither 1 nor 2

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

The Finance Commission is a constitutional body that recommends the distribution of tax proceeds between the Centre and States and the principles governing grants-in-aid to States.