Question

Evaluate the following pairs regarding key figures associated with Finance Commissions:

1. Dr. Arvind Panagariya : Chairman of the First Finance Commission of India.

2. Sri. P.M. Abraham : Chairman of the 7th State Finance Commission of Kerala.

3. K. Santhanam : Chairman of the Second Finance Commission of India.

How many of the above pairs are incorrectly matched?

• A. Only one
• B. Only two
• C. All three
• D. None

Answer 1

Answer:

B. Only two

Finance Commission of India

• The Finance Commission is a constitutional body established under Article 280 of the Indian Constitution.

• Its primary role is to recommend the distribution of financial resources between the Union government and the State governments.

• It also suggests principles for grants-in-aid to states and measures to augment consolidated funds of states.

• The Finance Commission is constituted every five years by the President of India.

Key Figures and Finance Commissions

• First Finance Commission (1951): Chaired by K.C. Neogy.

• Second Finance Commission (1957): Chaired by K. Santhanam. This pairing is correct.

• Seventh Finance Commission (2007-2012): Chaired by Dr. Vijay L. Kelkar.

• Dr. Arvind Panagariya: He was the Vice Chairman of NITI Aayog and a member of the 16th Finance Commission (though the chairman of the 16th FC is Arvind Panagariya, he is associated with the 16th FC, not the first). This pairing is incorrect.

State Finance Commissions

• State Finance Commissions are constituted under Article 243-I of the Constitution to review the financial position of Panchayats and Municipalities and make recommendations to the Governor.

• Kerala State Finance Commission: The 7th State Finance Commission of Kerala was chaired by B.A. Prakash. Sri. P.M. Abraham was associated with the 4th State Finance Commission of Kerala. This pairing is incorrect.

Analysis of the Given Pairs

• Pair 1 (Dr. Arvind Panagariya : Chairman of the First Finance Commission of India) is incorrect.

• Pair 2 (Sri. P.M. Abraham : Chairman of the 7th State Finance Commission of Kerala) is incorrect.

• Pair 3 (K. Santhanam : Chairman of the Second Finance Commission of India) is correct.

Conclusion

• Based on the analysis, two of the given pairs are incorrectly matched.