Question

Choose the correct statement(s) regarding the Central Finance Commission.

i) The Finance Commission is a quasi-judicial body constituted under Article 280 of the Indian Constitution.

ii) The President appoints the Chairman and four other members, who are not eligible for reappointment.

iii) The Finance Commission submits its recommendations to the Parliament directly.

iv) The recommendations of the Finance Commission are advisory and not binding on the government.

• A. i and iv
• B. ii and iii
• C. i and ii
• D. iii and iv

Answer 1

Answer:

A. i and iv

Central Finance Commission

• Constitutional Mandate: The Finance Commission is established under Article 280 of the Indian Constitution, highlighting its significant constitutional status. It functions as a quasi-judicial body.

• Appointment Process: The President of India appoints the Chairman and the four other members of the Finance Commission.

• Eligibility for Reappointment: Unlike some other constitutional bodies, the Chairman and members of the Finance Commission are eligible for reappointment, which is a crucial detail often tested in exams.

• Submission of Recommendations: The Finance Commission presents its recommendations to the President of India, who then causes them to be laid before both Houses of Parliament. It does not submit them directly to the Parliament.

• Nature of Recommendations: The recommendations made by the Finance Commission are of an advisory nature. While the government considers them seriously, they are not binding on the Union government.

• Functions: The primary functions include recommending the distribution of net proceeds of taxes between the Union and the States, recommending the allocation of shares of such proceeds among the States, and recommending principles that should govern grants-in-aid to States.

• Quinquennial Constitution: The Finance Commission is typically constituted every five years (quinquennially), although the President can appoint a commission earlier if deemed necessary.