Answer: Option B
Answer: (b)
The Finance Commission of India came into existence in 1951. It was established under Article 280 of the Indian Constitution by the President of India.
It was formed to define the financial relations between the centre and the state. The Constitution of India has made several provisions to bridge the gap of finances between the Centre and the States.
These include various articles in the constitution like Article 268, which facilitates a levy of duties by the Centre but equips the states to collect and retain the same.
Similarly, there are Articles 269, 270, 275, 282 and 293 all of which specify ways and means of sharing resources between Union and States. Apart from the above-mentioned provisions, The Indian Constitution provides an institutional framework to facilitate Centre-State TransfeRs.This body is the Finance Commission