The primary function of the Finance Commission in India is to

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Q: 10 (IAS/2000)
The primary function of the Finance Commission in India is to

question_subject: 

Polity

question_exam: 

IAS

stats: 

0,275,97,275,25,40,32

keywords: 

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The primary function of the Finance Commission in India is to distribute revenue between the Centre and the States.

The Finance Commission is a constitutional body established under Article 280 of the Indian Constitution. Its main role is to recommend the distribution of financial resources between the Central government and the State governments.

The Finance Commission examines various factors such as the financial position of the government, the revenue needs and expenditure patterns, the fiscal capacity of the states, and other relevant considerations. Based on its analysis, the Commission makes recommendations on the sharing of tax revenues, grants-in-aid, and other financial resources between the Centre and the States.

The Commission plays a crucial role in ensuring a fair and equitable distribution of financial resources to promote balanced development and fiscal autonomy among the states.

Therefore, the primary function of the Finance Commission in India is to distribute revenue between the Centre and the States.