GK question and answer on Indian Economy: Finance Commission of India
The Finance Commission is a constitutional body which is constituted by the President of India to divide Central Government's taxes into all states. In this article, 10 questions related to Finance Commission are given which will be very useful for upcoming exams like IAS, PCS, SSC ect.
1. Who determines the eligibility of members of the Finance Commission?
(c) Law Minister
(d) Prime Minister
2. Which of the following statement talks about the formation of the Finance Commission?
(a) Article 280
(b) Article 275
(c) Article 148
(d) Article 176
Explanation: Article 280
3. How many members are in the Finance Commission of India?
Explanation: There are four members and one Chairman in the Finance Commission.
4. Which statement about the 14th Finance Commission is not correct?
(a) The 14th Finance Commission has tenure of 2015-2020
(b) It has recommended the share of states to 42% in tax collection of the central Govt.
(c) The highest tax component of total taxes is given to Maharashtra
(d) Jammu and Kashmir has been given 1.85% of the total taxes.
Explanation: The highest tax share of the total taxes collection is 17.95% given to Uttar Pradesh.
5. How many finance commissions have been set up so far?
Explanation: So far 14 Finance Commission has been constituted.
6. Chairman of Finance Commission submits his report to...
(b) Finance Minister
(c) Prime Minister
(d) President of India
Explanation: President of India
7. Which of the following has never been the Chairman of the Finance Commission?
(a) Pranab Mukherjee
(b) Mahavir Tyagi
(c) C. Rangarajan
(d) Brahmand Reddy
Explanation: Pranab Mukherjee
8. Which of the following statements is not correct?
(a) The first Finance Commission was constituted in 1955
(b) Article 281 is related to the recommendations of the Finance Commission
(c) The recommendations of the Finance Commission are advisory to the Central Government, not binding
(d) Finance Commission is constituted for 5 years
Explanation: The first Finance Commission was constituted in 1951.
9. Which of the following criteria is not kept in mind by the Finance Commission while deciding the share of states?
(a) Demographic changes in the state
(b) Forest area in the state
(c) Income inequality in the state
(d) Level of education in the state
Explanation: Level of education in the state
10. Who constitutes the Finance Commission in India?
(b) Finance Minister
(d) Reserve Bank Governor