Which of the following are the roles of the Finance Commission in India 1 The distribution of money ...........

Indian Economy Financial System

Which of the following are the roles of the Finance Commission in India?

1. The distribution of money collected through taxes

2. Evaluation of Centrally sponsored schemes

3. Evolve principles based on which funds are allotted among States

4. To develop Five Year Plans

Select the correct answer using the codes given below:

This questions was previously asked in

EPFO APFC (2015)

1 and 4 only

1 and 3 only

2 and 4 only

2 and 3 only

- The Finance Commission of India is tasked with fiscal responsibilities between the central and state governments.

- Role 1: The distribution of money collected through taxes

- This is a primary function, as the Finance Commission recommends the distribution of tax revenue.

- Role 2: Evaluation of Centrally sponsored schemes

- This is not typically a role of the Finance Commission; it focuses more on fiscal matters.

- Role 3: Evolve principles based on which funds are allotted among States

- Correct, the Commission develops principles for fund distribution to states.

- Role 4: To develop Five Year Plans

- This role is associated with the Planning Commission, not the Finance Commission.

The correct option is Option 2: 1 and 3 only.

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