Consider the following statements:
- 1. The Finance Commission is established under Article 280 of the Constitution of India.
- 2. The Finance Commission makes recommendations on the distribution of tax revenues between the Union and the States.
- 3. The Finance Commission is a statutory body.
Which of the statements given above are correct?
1 and 2 only
1 and 3 only
2 and 3 only
1, 2 and 3
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC CAPF – 2010
– Statement 2: One of the primary functions of the Finance Commission is to make recommendations regarding the distribution of net proceeds of taxes between the Union and the States (vertical devolution) and among the States themselves (horizontal devolution). This statement is correct.
– Statement 3: The Finance Commission is a constitutional body because it is established directly by the Constitution under Article 280. A statutory body is created by an Act of Parliament or a State Legislature. This statement is incorrect.