Which authority recommends the principles governing the grantsin-aid of the revenues of the states out of the Consolidated Fund of India?
Options:
A . Union Ministry of Finance
B . Public Accounts Committee
C . Finance Commission
D . Inter-State Council
Answer: Option C Answer: (c) The Finance Commission of India is established under Article 280 of the Indian Constitution by the President of India to define the financial relations between the centre and the state. It is entrusted with the task of distribution of net proceeds of taxes between Centre and the States, to be divided as per their respective contributions to the taxes; determine factors governing Grants-in-Aid to the states and the magnitude of the same; and work with the State Finance Commissions and suggest measures to augment the Consolidated Fund of the States so as to provide additional resources to Panchayats and Municipalities in the state.
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