{"id":89262,"date":"2025-06-01T10:00:11","date_gmt":"2025-06-01T10:00:11","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=89262"},"modified":"2025-06-01T10:00:11","modified_gmt":"2025-06-01T10:00:11","slug":"consider-the-following-statements-1-the-finance-commission-is-est","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-the-finance-commission-is-est\/","title":{"rendered":"Consider the following statements:\n \n 1. The Finance Commission is est"},"content":{"rendered":"<p>Consider the following statements:<\/p>\n<ul>\n<li>1. The Finance Commission is established under Article 280 of the Constitution of India.<\/li>\n<li>2. The Finance Commission makes recommendations on the distribution of tax revenues between the Union and the States.<\/li>\n<li>3. The Finance Commission is a statutory body.<\/li>\n<\/ul>\n<p>Which of the statements given above are correct?<\/p>\n<p>[amp_mcq option1=&#8221;1 and 2 only&#8221; option2=&#8221;1 and 3 only&#8221; option3=&#8221;2 and 3 only&#8221; option4=&#8221;1, 2 and 3&#8243; correct=&#8221;option1&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC CAPF &#8211; 2010<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-capf-2010.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-capf-2010\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nStatements 1 and 2 are correct, while statement 3 is incorrect.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\n&#8211; Statement 1: The Finance Commission is constituted under Article 280 of the Constitution of India by the President. This statement is correct.<br \/>\n&#8211; 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.<br \/>\n&#8211; 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.<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\nThe Finance Commission is constituted every five years or earlier as deemed necessary by the President. Its recommendations cover the division of taxes, principles governing grants-in-aid to states, and measures needed to augment the Consolidated Fund of a State to supplement resources of Panchayats and Municipalities.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>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? [amp_mcq option1=&#8221;1 and &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Consider the following statements:\n \n 1. The Finance Commission is est\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-the-finance-commission-is-est\/#more-89262\">Detailed Solution<span class=\"screen-reader-text\">Consider the following statements:<\/p>\n<p> 1. The Finance Commission is est<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1085],"tags":[1464,1099,1390],"class_list":["post-89262","post","type-post","status-publish","format-standard","hentry","category-upsc-capf","tag-1464","tag-indian-polity-and-governance","tag-the-finance-commission","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Consider the following statements:  1. The Finance Commission is est<\/title>\n<meta name=\"description\" content=\"Statements 1 and 2 are correct, while statement 3 is incorrect. - Statement 1: The Finance Commission is constituted under Article 280 of the Constitution of India by the President. This statement is correct. - 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.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-the-finance-commission-is-est\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Consider the following statements:  1. The Finance Commission is est\" \/>\n<meta property=\"og:description\" content=\"Statements 1 and 2 are correct, while statement 3 is incorrect. - Statement 1: The Finance Commission is constituted under Article 280 of the Constitution of India by the President. This statement is correct. - 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.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-the-finance-commission-is-est\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:00:11+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Consider the following statements:  1. The Finance Commission is est","description":"Statements 1 and 2 are correct, while statement 3 is incorrect. - Statement 1: The Finance Commission is constituted under Article 280 of the Constitution of India by the President. This statement is correct. - 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.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-the-finance-commission-is-est\/","og_locale":"en_US","og_type":"article","og_title":"Consider the following statements:  1. The Finance Commission is est","og_description":"Statements 1 and 2 are correct, while statement 3 is incorrect. - Statement 1: The Finance Commission is constituted under Article 280 of the Constitution of India by the President. This statement is correct. - 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.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-the-finance-commission-is-est\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T10:00:11+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-the-finance-commission-is-est\/","url":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-the-finance-commission-is-est\/","name":"Consider the following statements: 1. The Finance Commission is est","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T10:00:11+00:00","dateModified":"2025-06-01T10:00:11+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"Statements 1 and 2 are correct, while statement 3 is incorrect. - Statement 1: The Finance Commission is constituted under Article 280 of the Constitution of India by the President. This statement is correct. - 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.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-the-finance-commission-is-est\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-the-finance-commission-is-est\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-the-finance-commission-is-est\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC CAPF","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-capf\/"},{"@type":"ListItem","position":3,"name":"Consider the following statements: 1. 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