Which of the following statements is/are correct regarding the Finance Commission of India?

A. The Finance Commission consist of a Chairman and four other members.

B. The recommendations made by the Finance Commission are binding on the government and the government needs to grant funds according to the advice of the Commission,

C. Article 280 of the Indian Constitution talks about the recommendations of the Finance Commission.

Question

Question

This question was previously asked in

SSC CGL 2023 Tier-I Official Paper (Held On: 20 Jul 2023 Shift 4)

Answer 1

The correct answer is A only.

Key Points

The correct answer is option 3 (A only).
The Finance Commission of India is a Constitutional body established under Article 280 of the Indian Constitution.
The Commission consists of a Chairman and four other members appointed by the President of India.
The recommendations made by the Finance Commission are advisory in nature and not binding on the government.
The government may accept or reject the recommendations.
The Commission recommends the distribution of taxes between the Centre and the States, grants-in-aid to the States, and other fiscal matters.
The Finance Commission is constituted every five years.

Additional Information

The President of India constitutes the Finance Commission every 5 years.
The finance commission is a constitutional body mandated by article 280 of the constitution.
The recommendations made by the Finance Commission are of an advisory nature only and therefore, not binding upon the government.
It submits its report to the President of India.
The first Finance Commission was constituted in 1951.
The eligibility of members of the Finance Commission is determined by the Parliament of India.
Chairman of the Finance Commission submits his report to the President of India.
Composition: Chairman and 4 members.