UPSC Indian Polity and Civics The Indian Constitution Question Bank

done Finance Commission Total Questions - 21

• question_answer1)

  On which of the following matters, does the Finance Commission make recommendations to the President of India?

  1. The distribution between Union and States of net proceeds of taxes and allocation between the States of their respective shares of such proceeds.

  2. The principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India.

  Select the correct answer using the codes given below:
  A)
   Only 1              done clear
  B)
   Only 2 done clear
  C)
   Both 1 and 2     done clear
  D)
   Neither 1 nor 2 done clear
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• question_answer2)

  Consider the following statements with regard to the Finance Commission:

  1. The recommendations of the Finance Commission cover a period of five years.

  2. The Report of me Finance Commission is submitted to the Prime Minister.

  Which of the statements given above is/are correct?
  A)
   Only 1  done clear
  B)
   Only 2 done clear
  C)
   Both 1 and 2     done clear
  D)
   Neither 1 nor 2 done clear
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• question_answer3)
  Which one of the following statements about the Finance Commission is not correct?
  A)
   The Commission comprises a Chairman and four other members. done clear
  B)
   The Parliament is authorised to determine by law the qualifications of the members of the Commission. done clear
  C)
   All the appointments are made by the President of India. done clear
  D)
   All the members have to be from Indian Economic Service or Indian Statistical Service. done clear
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• question_answer4)

  Assertion (A): The Finance Commission prescribes the framework for the working of the Planning Commission.

  Reason (R): The jurisdiction and functions of the Finance Commission are outlined in the Constitution of India.

  Codes:
  A)
   Both A and R are individually true and R is the correct explanation of A done clear
  B)
   Both A and R are individually true but R is not the correct explanation of A done clear
  C)
   A is true but R is false done clear
  D)
   A is false but R is true done clear
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• question_answer5)

  Which of the following is/are the issue(s) on which recommendations to be made by the Finance Commission to the President of India are specified in the Constitution of India?

  1. The principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India

  2. Measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats in the State

  3. Measures needed to augment the Consolidated Fund of a State to supplement the resources of the Municipalities in the State

  Select the correct answer using the codes given below:
  A)
   1, 2 and 3                     done clear
  B)
   2 and 3 only done clear
  C)
   1 only              done clear
  D)
   2 only done clear
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• question_answer6)
  Match List I with List II and select the correct answer using the codes given below:

  List-I (Finance commission)		List-II (chairman)
  A.	First finance	1.	P.V Rajamannar
  B.	Fourth finance commission	2.	K.C Neogy
  C.	Sixth finance	3.	Y.B Chavan
  D.	Eighth finance commission	4.	Brahamananda Reddy

   Codes:
  A)
   A-2      B-1       C-4       D-3 done clear
  B)
   A-4      B-3       C-2       D-1 done clear
  C)
  A-2       B-3       C-4       D-1 done clear
  D)
  A-4       B-1       C-2       D-3                    done clear
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• question_answer7)
  Which one of the following is not correct about Finance Commission?
  A)
   The members of the Commission are appointed by the President. done clear
  B)
   It is to act as a balancing wheel of Indian fiscal federalism. done clear
  C)
   The qualifications of members of the Commission are determined by the Parliament. done clear
  D)
   It is constituted under the provisions of Article 180 of the Constitution of India. done clear
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• question_answer8)
  The role of the Finance Commission in Centre-State fiscal relations has been undermined by the:
  A)
   State Governments                      done clear
  B)
   Zonal Councils done clear
  C)
   Planning Commission                   done clear
  D)
   Central Government done clear
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• question_answer9)

  Assertion (A): The qualifications which shall be requisite for appointment as the members of the Finance Commission are distinctly stated in the Constitution of India.

  Reason (R): Finance Commission I constituted under Article 280 of the Constitution of India.

  Codes:
  A)
   Both A and R are individually true and R is the correct explanation of A done clear
  B)
   Both A and R are individually true but R is not the correct explanation of A done clear
  C)
   A is true but R is false done clear
  D)
   A is false but R is true done clear
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• question_answer10)
  The Finance Commission recommends the distribution of the net proceeds of the Union Government arising from:
  A)
   All taxes between the Union and the States done clear
  B)
   Specified taxes among the States only done clear
  C)
   All sources including taxes, fees and surcharges between the Union and the States done clear
  D)
   Specified taxes without the surcharge between the Union and the States done clear
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• question_answer11)
  The principles concerning the provisions of the grants-in-aid to the States out of the Consolidated Fund of India are recommended by the:
  A)
   Planning Commission done clear
  B)
   Administrative Reforms Commission done clear
  C)
   Finance Commission done clear
  D)
   Public Accounts Committee done clear
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• question_answer12)
  Match List I with List II and select the correct answer using the codes given below:

  List-I (Bodies)		List-II (Article)
  A.	Finance commission	1.	Article 148
  B.	Union public service commission	2.	Article 280
  C.	Election commission	3.	Article 315
  D.	Comptroller and Auditor general of India	4.	Article 324

  Codes:
  A)
  A-1       B-2       C-2       D-3 done clear
  B)
  A-2       B-3       C-4       D-1 done clear
  C)
  A-4       B-3       C-2       D-1 done clear
  D)
  A-2       B-1       C-4       D-3 done clear
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• question_answer13)
  The Finance Commission is constituted to recommend criteria for:
  A)
   Framing a financial bill done clear
  B)
   Preparing the annual budget of Union Government done clear
  C)
   Distribution of financial resources between Union and the States done clear
  D)
   Auditing the receipts and expenditures of the Union Government done clear
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• question_answer14)

  Consider the following statements:

  The Finance Commission makes recommendation to the President in respect of:

  1. The distribution of net proceeds of taxes to be shared between the Union and the States

  2. Assessment of natural, capital and human resources

  3. The principles governing grants-in-aid to the States

  4. Any other matter concerning financial relations between the Union and the States Of these statements:

  A)
   1, 2, 3 and 4 are correct done clear
  B)
   2 and 4 are correct done clear
  C)
   1, 3 and 4 are correct done clear
  D)
   1, 2 and 3 are correct done clear
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• question_answer15)
  The qualifications for the members of Finance Commission:
  A)
   Are laid down in the Constitution of India done clear
  B)
   Can be prescribed by the Parliament of India done clear
  C)
   Can be prescribed by the President of India done clear
  D)
   Can be prescribed by the Union Finance Minister done clear
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• question_answer16)

  Consider the following statements about the Finance Commission:

  1. The duty of the Finance Commission is to make recommendations as to the distribution of revenue resources between the Union and the States.

  2. It is appointed every fifth year by the President of India.

  3. It raises revenue for central financial transfers to the States.

  4. It borrows money from the market for central grants to the States.

  Which of the statements given above is/are correct?
  A)
    1 and 2           done clear
  B)
   1, 2 and 3 done clear
  C)
   1 only              done clear
  D)
   2 and 4 done clear
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• question_answer17)

  Statement I: The Finance Commission depends mainly on the data and information of the financial needs of the states, supplied by the states diem selves.

  Statement II: This information and data may not be free from the hidden unrealities; and an attempt to secure more financial assistance and window dressing of the financial position of the states cannot be ruled out.

  Codes:
  A)
   Both the statements are individually true and Statement II is the correct explanation of Statement I. done clear
  B)
   Both the statements are individually true but Statement II is not the correct explanation of Statement I. done clear
  C)
   Statement I is true but Statement II is false. done clear
  D)
   Statement I is false but Statement II is true. done clear
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• question_answer18)
  Which one among the following is the function of the Finance Commission?
  A)
   Preparation of the Central Budget done clear
  B)
   Assessing income tax proceeds done clear
  C)
   Determining the principles governing grants-in-aid the states done clear
  D)
   Exercising control over Government expenditure done clear
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• question_answer19)

  Which of the following is/are the functions of the Finance Commission?

  1. Making recommendations as to the principles governing grants-in-aid of the revenues of the States.

  2. To suggest measures to augment the Consolidated Fund of India.

  Select the correct answer using the codes given below:
  A)
   Only1               done clear
  B)
   Only 2 done clear
  C)
   Both 1 and 2     done clear
  D)
   Neither 1 nor 2 done clear
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• question_answer20)
  In which Article of our Constitution, is the Finance Commission dealt with?
  A)
   Article 280                    done clear
  B)
   Article 380 done clear
  C)
   Article 281                    done clear
  D)
   Article 381 done clear
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• question_answer21)
  Match List I with List II and select the correct answer using the codes given below:

  List-I (Function)		List-II (Authority)
  A.	Principles governing grants in aid to state	1.	President of India
  B.	Coordination in the central secretariat	2.	Chief minister
  C.	Appointment of High court judges	3.	Finance commission
  D.	Alternative Expenditure policy	4.	Cabinet secretary
  		5.	Estimates committee

  Codes:
  A)
  A-1       B-5       C-2       D-4 done clear
  B)
  A-3       B-4       C-1       D-5 done clear
  C)
  A-1       B-4       C-2       D-5 done clear
  D)
  A-3       B-5       C-1       D-4 done clear
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