Which of the foil!owing is/are the function/ functions of the Finance Commission of India? 1. Making recommendations as to the principles governing grant-in-aid of the revenues of the States. 2. To suggest measures to augment Consolidated Fund of India. S

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Q: 14 (NDA-I/2009)

Which of the foil!owing is/are the function/ functions of the Finance Commission of India?
1. Making recommendations as to the principles governing grant-in-aid of the revenues of the States.
2. To suggest measures to augment Consolidated Fund of India.
Select the correct answer using the code given below :

question_subject: 

Polity

question_exam: 

NDA-I

stats: 

0,40,33,22,3,47,1

keywords: 

{'finance commission': [8, 1, 3, 1], 'consolidated fund': [1, 0, 0, 3], 'functions': [0, 0, 0, 1], 'revenues': [2, 0, 5, 3], 'india': [8, 1, 7, 13], 'grant': [0, 0, 3, 4], 'aid': [3, 0, 3, 0]}

The Finance Commission of India is a constitutional body set up under Article 280 of the Constitution of India. Its primary role is to make recommendations to the President of India on the distribution of tax revenue between the Union government and the state governments, and among the states themselves.

One of the key functions of the Finance Commission is to make recommendations regarding the principles governing the grant-in-aid of the revenues of the states. This means that the Commission examines the financial position of the states and makes recommendations as to how much money should be transferred from the Consolidated Fund of India to the states as grants-in-aid.

However, the Finance Commission does not suggest measures to augment the Consolidated Fund of India. The Consolidated Fund of India is the main fund of the government, out of which all expenditure of the government is incurred, and it is not the function of the Finance Commission to suggest measures to increase this fund.