Question

Which statement(s) about the constitutional and legal status of the Finance Commissions is/are incorrect?

i. The Central Finance Commission is described as a quasi-judicial body in Article 280 of the Constitution.
ii. The qualifications of the members of the Central Finance Commission are laid down in the Constitution itself.
iii. The recommendations of the Central Finance Commission automatically become law upon being laid before the Parliament.
iv. The State Finance Commission is a constitutional body established under Articles 243-I and 243-Y.

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

Answer 1

Answer:

C. Only ii and iii

Constitutional and Legal Status of Finance Commissions

• Article 280 of the Constitution designates the Finance Commission as a quasi-judicial body. This implies it has the authority to make recommendations and decisions based on legal principles, similar to a court, though its recommendations are advisory.

• The qualifications and method of selection of the members of the Central Finance Commission are not explicitly laid down in the Constitution. Instead, they are determined by an Act of Parliament, the Finance Commission (Miscellaneous Provisions) Act, 1951. This makes statement (ii) incorrect.

• The Finance Commission's recommendations, once presented to the Parliament, are subject to review and approval. They do not automatically become law. The government may choose to accept or reject these recommendations, or modify them, usually explaining the reasons for any deviation to the Parliament. This makes statement (iii) incorrect.

• State Finance Commissions are indeed established under the constitutional provisions of Articles 243-I and 243-Y, which were introduced by the 73rd and 74th Constitutional Amendments in 1992. These amendments aimed to strengthen local self-governance by mandating the creation of these commissions at the state level.