With reference to the Finance Commission of India, which of the following statements is correct ? Options: A . &nbspIt encourages the inflow of foreign capital for infrastructure development B . &nbspNone of the statements (a), (b) and (c) given above is correct in his context C . &nbspIt facilitates the proper distribution of finances among the Public Sector Undertakings D . &nbspIt ensures transparency in financial administration

With reference to the Finance Commission of India, which of the following statem

Question

With reference to the Finance Commission of India, which of the following statements is correct ?

Options:

A . It encourages the inflow of foreign capital for infrastructure development

B . None of the statements (a), (b) and (c) given above is correct in his context

C . It facilitates the proper distribution of finances among the Public Sector Undertakings

D . It ensures transparency in financial administration

Answer: Option B
Answer: (b)The Commission shall make recommendations as to the following matters, namely :The distribution between the Union and the States of the net proceeds of taxes which are to be, or may be, divided between them under Chapter I Part XII of the Constitution and the allocation between the States of the respective shares of such proceeds;The principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India and the sums to be paid to the States which are in need of assistance by way of grantsin-aid of their revenues under article 275 of the Constitution for purposes other than those specified in the provisions to clause (1) of that article; andThe measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats and Municipalities in the State on the basis of the recommendations made by the Finance Commission of the State.

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