With reference to the Finance Commission of India, which of the following statements is correct?

examrobotsa's picture
Q: 45 (IAS/2011)
With reference to the Finance Commission of India, which of the following statements is correct?

question_subject: 

Polity

question_exam: 

IAS

stats: 

0,168,113,25,35,53,168

keywords: 

{'finance commission': [8, 1, 3, 1], 'foreign capital': [0, 0, 0, 3], 'financial administration': [0, 0, 0, 1], 'finances': [0, 1, 0, 1], 'infrastructure development': [0, 0, 1, 4], 'public sector undertakings': [0, 0, 1, 0], 'transparency': [1, 0, 0, 1], 'india': [8, 1, 7, 13], 'proper distribution': [0, 0, 0, 1], 'context': [2, 2, 1, 6]}

The Finance Commission of India`s main function is to define the financial relations between the national government and the individual state governments. It does not directly involve itself with foreign capital inflow for infrastructure development (option 1), nor is it responsible for distributing funds among Public Sector Undertakings (option 2). While the Finance Commission promotes financial discipline, it`s not specifically geared towards ensuring transparency in financial administration (option 3). Therefore, option 4 is correct as none of the statements accurately describes the primary functions of the Finance Commission of India.