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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:

Given below are two statements, Assertion (A) and Reason (R).

Assertion (A): The State Finance Commission has the power to require any person to furnish information on relevant matters.

Reason (R): This power is crucial for the Commission to conduct a comprehensive and evidence-based review of the financial position of the Panchayats.

Choose the correct answer from the options given below:

Which of the following statements is/are correct about the Doctrine of Pleasure?

i. The Doctrine of Pleasure allows the President or Governor to terminate a civil servant’s service without any notice.

ii. The Doctrine of Pleasure is based on the British Crown’s prerogative and has been adopted without modifications in India.

iii. Article 311 imposes restrictions on the arbitrary dismissal of civil servants.

iv. The tenure of the Chief Election Commissioner is subject to the pleasure of the President.

v. The Supreme Court in State of Bihar vs. Abdul Majid (1954) held that the English Common Law was adopted in its entirety for the Doctrine of Pleasure.


Choose the correct statement(s) regarding the Doctrine of Pleasure in India.

  1. The Doctrine of Pleasure is enshrined in Article 310 of the Constitution of India.

  2. Article 311 provides safeguards against arbitrary dismissal of civil servants.

Consider the following statements regarding specific provisions for the SFC:

  1. The provision that members may be appointed on a part-time basis offers flexibility in securing expert services.

  2. The provision for re-appointment allows for continuity and utilization of acquired experience.

Which of the statements given above is/are correct?

Read each of the following two statements: Assertion (A) and Reason (R) and indicate your answer using the codes given below:

Assertion (A): The recommendations of the State Finance Commission are not automatically binding on the state government.

Reason (R): The Constitution requires the Governor to lay the report before the legislature along with an 'explanatory memorandum' detailing the action taken, which implies the government has the discretion to accept, reject, or modify the recommendations.