Finance Commissions in India – Central and States

1. Which Article in the Constitution of India provides for a Finance Commission to manage revenue-sharing between states and the Centre?

  1. Article 350
  2. Article 265
  3. Article 280
  4. Article 310
Show Answer

Answer: Option C. Article 280

2. Which constitutional body is constituted every five years by the President to review center-state financial relations?

  1. Finance Commission
  2. Planning Commission
  3. Election Commission
  4. NITI Aayog
Show Answer

Answer: Option A. Finance Commission

3. The Chairman of the Finance Commission is also the ex-officio chairman of which of the following?

  1. Tax Policy Council
  2. Monetary Policy Committee
  3. Planning Commission
  4. None
Show Answer

Answer: Option D. None

4. Which of the following is an incorrect statement about the Finance Commission?

  1. It is established every five years
  2. It determines the interest rate, which determines the cost of borrowing and the return on savings
  3. It recommends financial distributions between the Centre and the states
  4. The President appoints the members of the Finance Commission
Show Answer

Answer: Option B. It determines the interest rate, which determines the cost of borrowing and the return on savings

5. Who determines the qualifications required for members of the Finance Commission in India?

  1. Parliament
  2. President
  3. Prime Minister
  4. Cabinet
Show Answer

Answer: Option A. Parliament