Consider the following statements 1 Finance Commission is a statutory body 2 nbs...........

Indian Polity Centre - State Relations

Consider the following statements:

1. Finance Commission is a statutory body

2. The Finance Commission assesses the non-plan requirements of the State Governments and recommends a share in the net yield from the Central and Grants-in-aid

3. Finance Commission does not distinguish between special and non-special category states in its allocation

Which of the statements given above is/are correct?

1, 2 and 3

1 and 2

2 and 3

1 and 3

छोटे Courses बड़े Results

Master Centre - State Relations

Prepare through Micro-courses

Try Now

Explanation:

The Finance Commission came into existence in 1951. It was established under Article 280 of the Indian Constitution by the President of India. It was formed to define the financial relations between the centre and the state. The Finance Commission Act of 1951 states the terms of qualification, appointment and disqualification, the term, eligibility and powers of the Finance Commission. As per the Constitution, the commission is appointed every five years and consists of a chairman and four other members. Since the institution of the first finance commission, stark changes have occurred in the Indian economy causing changes in the macroeconomic scenario.