The Finance Commission makes recommendations with respect to which of the following matters 1 Distri...........

Indian Polity Constitutional Bodies

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The Finance Commission makes recommendations with respect to which of the following matters?

1.Distribution of taxes between the Centre and states.

2.Expenditure from the Contingency Fund of India.

3.Grants-in-aid to the states by the Centre.

Select the correct answer using the code given below.

1 and 2 Only

2 and 3 Only

1 and 3 Only

All of the above

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Explanation:

The Finance Commission is required to make recommendations to the President of India on the following matters:?The distribution of the net proceeds of taxes to be shared between the Centre and the states, and the allocation between the states of the respective shares of such proceeds.?The principles that should govern the grants-in-aid to the states by the Centre (i.e., out of the Consolidated Fund of India).?The measures needed to augment the consolidated fund of a state to supplement the resources of the panchayats and the municipalities in the state on the basis of the recommendations made by the State Finance Commission.?Any other matter referred to it by the President in the interests of sound finance.Expenditure from the Contingency Fund of India is made through an executive decision.