Question

Which of the following accurately describes the role of the President of India in relation to the Central Finance Commission?

i. The President constitutes the commission and specifies the period for which the members will hold office.
ii. The President refers matters to the commission in the interests of sound finance.
iii. The President can turn down the recommendations of the commission if there are compelling reasons.
iv. The President submits the commission's report before both Houses of Parliament along with an explanatory memorandum.

• A. Only i, ii, and iv
• B. Only i and iii
• C. Only ii and iv
• D. All the above (i, ii, iii and iv)

Answer 1

Answer:

A. Only i, ii, and iv

Role of the President with Central Finance Commission

• Constitution of the Finance Commission: The President of India is mandated to constitute a Finance Commission every five years or at such earlier time as the President considers necessary. This is in accordance with Article 280 of the Constitution.

• Appointment of Members: The President appoints the Chairman and other members of the Finance Commission. The qualifications for appointment are laid down by Parliament.

• Referral of Matters: The President may refer to the Finance Commission any other matter in the interest of sound finance. This allows for the commission's scope to be expanded beyond its core mandate if deemed necessary.

• Laying the Report Before Parliament: After the Finance Commission submits its report to the President, the President is required to cause the report to be laid before both Houses of Parliament. This is to be done along with an explanatory memorandum as to the action taken on the recommendations.

• Non-binding Recommendations: While the recommendations of the Finance Commission are highly persuasive, they are not binding on the President (and by extension, the Government). The government can choose not to accept certain recommendations, but it must provide a justification in the explanatory memorandum laid before Parliament.

• Significance for Competitive Exams: Understanding the President's role in constituting the commission, referring matters, and laying the report before Parliament is crucial for Indian Polity sections in competitive exams like UPSC Civil Services, State PSCs, and other government recruitment exams. Pay attention to the constitutional articles and the binding nature of the recommendations.