The Finance Commission of India plays a role in:

The correct answer is: A) Allocating funds between the Centre and States.

The Finance Commission of India is an independent body constituted by the President of India every five years to review the financial relations between the Union and the States and to make recommendations to the President on the following matters:

• The distribution of net proceeds of taxes between the Union and the States;
• The principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India;
• The measures needed to augment the Consolidated Fund of a State to enable it to meet the expenditure on schemes of development;
• The measures needed for improving the financial position of the States; and
• Any other matter referred to the Commission by the President in the interests of sound finance.

The Finance Commission has played a vital role in the development of the Indian economy. Its recommendations have helped to improve the financial position of the States and have led to a more equitable distribution of resources between the Centre and the States. The Commission has also played a significant role in the formulation of the Union Budget.

The other options are incorrect because:

• Option B is the responsibility of the Reserve Bank of India.
• Option C is the responsibility of the Government of India’s Security Printing Press.
• Option D is the responsibility of the Reserve Bank of India.