The jurisdiction of the Finance Commission does not extend to

Q. The jurisdiction of the Finance Commission does not extend to

1. Recommendation of the distribution between the Union and the States of the net proceeds of taxes.
2. Recommendation of the allocation to the states of the respective shares of such tax proceeds.
3. Recommendation of the allocation of funds among the various heads of expenditure in the Union and State budgets.
4. Recommendation of the principles which govern the Grants in aid of the revenue of the states out of the Consolidated Fund of India.

Answer: Recommendation of the allocation of funds among the various heads of expenditure in the Union and State budgets.