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Consider the following statements regarding the State Finance Commission (SFC):
i. The SFC is a statutory body established by an Act of the State Legislature.
ii. It is constituted by the Governor of the state every five years.
iii. Its primary mandate is to review the financial position of Panchayats and Municipalities.

Which of the above statements are correct?

Ai and ii only

Bii and iii only

Ci and iii only

DAll i, ii, and iii are correct

Answer:

B. ii and iii only

Read Explanation:

State Finance Commission (SFC)

  • Constitutional Basis: The State Finance Commission (SFC) is established under Article 243-I and Article 243-Y of the Indian Constitution.

  • Establishment: The Governor of a state constitutes the SFC.

  • Tenure: The SFC is typically constituted every five years, or earlier if deemed necessary by the Governor.

  • Functions: The primary role of the SFC is to review the financial position of:

    • Panchayats (local self-government bodies at the rural level)

    • Municipalities (local self-government bodies at the urban level)

  • Mandate: The SFC recommends measures to improve the financial health of these local bodies. This includes:

    • Distribution of taxes, duties, tolls, and fees between the state and local bodies.

    • Assignment of taxes, duties, tolls, and fees to local bodies.

    • Grants-in-aid to local bodies from the state consolidated fund.

  • Distinction from Central Finance Commission: While the Finance Commission (Article 280) deals with the division of finances between the Union and the States, the SFC focuses on the financial relationship between the State government and its local self-government bodies.

  • Statutory vs. Constitutional Body: While the Constitution mandates the establishment of SFCs, the specific details of their composition, powers, and functioning are often laid down by State Acts or executive orders. Therefore, it is a constitutionally recognized body, but its specific operational framework is statutory. Statement (i) is partially correct in that state legislature plays a role in defining its functioning, but its existence is rooted in the Constitution itself, not solely by an Act of the State Legislature.

  • Reporting: The SFC submits its report to the Governor, who then causes it to be laid before the State Legislature.

Related Questions:

Choose the correct statement(s) regarding the Comptroller and Auditor General (CAG) of India.

  1. The CAG is appointed by the President of India and can only be removed in the same manner as a Supreme Court judge.

  2. The CAG’s salary and administrative expenses are charged upon the Consolidated Fund of India, not subject to parliamentary vote.

  3. The CAG has the authority to control withdrawals from the Consolidated Fund of India.

  4. The CAG submits audit reports on state accounts to the President, who presents them to the Parliament.

Which of the following statements about the CAG’s duties is/are not correct?
i. The CAG audits the accounts of all local bodies without requiring a request from the President or Governor.
ii. The CAG compiles and maintains the accounts of both the Central and state governments.
iii. The CAG acts as a guide, friend, and philosopher to the Public Accounts Committee of Parliament.

Which of the following statements accurately describe the duties and functions of the Advocate General?

  1. He/She is the chief law officer of the state government.

  2. He/She advises the state government on legal matters referred by the Chief Minister.

  3. He/She performs other legal duties assigned by the Governor.

  4. He/She discharges functions conferred by the Constitution or any other law.

How many of the above statements are correct?

Which of the following statements are correct?

a. The CAG audits the accounts of all government companies as per the provisions of the Companies Act.

b. The CAG can inspect any office or department subject to their audit and call for any records or documents.

c. The CAG compiles and maintains the accounts of the Central Government.

d. The CAG acts as a guide, friend, and philosopher to the Public Accounts Committee of Parliament.

The Child Labour (Prohibition and Regulation) Act, 1986

1. Prohibits all kinds of employment of children below the age of eighteen.

2. Prohibits all kinds of employment of female children below the age of eighteen.

3. Regulates employment of children above the age of fourteen in some kinds of employment.

4. Defines a 'child' to be a person who has not completed the age of eighteen years.