1. Which of the following article talks about the formation of the Finance Commission?
- Article 280
- Article 275
- Article 148
- Article 176
Answer: Article 280
2. The Finance Commission of India submits its report to ________.
- The head of NITI Ayog
- The Finance minister of India
- The President of India
- The Prime minister of India
Answer: The President of India
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3. The State Finance Commission is a
- Legal body
- Non-statutory body
- Constitutional body
- None of the above
Answer: Constitutional body
4. How many Finance Commissions have been constituted so far?
- 12
- 13
- 14
- 15
Answer: 14
5. Which factor got the highest priority in tax distribution to the states?
- State's population
- Income inequality in the state
- Area of the state
- Forest area in the state
Answer: Income inequality in the state
6. Which factor has not been kept in mind by the Finance Commission for giving a share of taxes to states?
- Demographic changes in the state
- forest area in the state
- Income inequality in the state
- Level of education in the state
Answer: Level of education in the state
7. Which of the following statements with regard to the constitution of Finance Commission
is/are correct?
1. The Government of India has recently constituted the Sixteenth Finance Commission
under the Chairmanship of Dr. Arvind Panagariya.
2. Finance Commission is constituted in pursuance to Article 263 of the Constitution of India.
Select the answer using the code given below:
- 1 only
- 2 only
- Both 1 and 2
- None of the above
Answer: None of the above
8. Who has been authorised to constitute Finance Commission to review financial position of
Panchayat?
- The Chief Minister of a State
- The Speaker of a legislative assembly
- The President of India
- None of the above
Answer: None of the above
9. Article 280 of the Indian Constitution lays down the establishment of the
- Planning Commission
- Inter-State Council
- River Waters Tribunal
- Finance Commission
Answer: Finance Commission
10. Which of the following statements is not correct?
- The first finance commission was constituted in 1951
- Chairman of the First Finance Commission was Mr. Santhanam
- The Chairman of the 12th Finance Commission was C. Rangarajan
- B and C
Answer: Chairman of the First Finance Commission was Mr. Santhanam
11. Which statement about the 14th Finance Commission is not correct?
- The 14th Finance Commission has a tenure of 2015-2020
- It has recommended 42% share to states in tax collection of Central government
- The highest tax component of the tax collection is given to Maharashtra
- Jammu and Kashmir has been given 1.85% of the total taxes.
Answer: The highest tax component of the tax collection is given to Maharashtra
12. Which of the following states got the highest share in taxes by the 14th Finance Commission recommendation?
- Maharashtra
- Uttar Pradesh
- Bihar
- Madhya Pradesh
Answer: Uttar Pradesh
13. Consider the following statements regarding State Finance Commission?
1. It is a constitutional body.
2. It is constituted by the Governor of the state.
3. The Chairman of the State Finance Commission submits his resignation to the President.
4. The tenure of the State Finance Commission is three years.
Which of the statements given above is/are correct?
- 1 and 3 are correct.
- 1 and 2 are correct.
- 1, 2 and 3 are correct.
- More than one of the above
Answer: 1 and 2 are correct.
14. Who establishes the Finance Commission in India?
- President
- Finance Minister
- Parliament
- Governor of Reserve Bank of India
Answer: President
15. In which Articles of the Indian constitution the constitutional body, Finance commission is
included?
- Article 155
- Article 280
- Article 98
- None of the above
Answer: Article 280
16. Who is the Chairman of the 14th Finance Commission?
- Vijay Kelkar
- Y.V. Reddy
- Arun Kumar Mathur
- Nandan Nilakani
Answer: Y.V. Reddy
17. According to the Indian Constitution, how often is the Finance Commission constituted?
- Every five years
- Every two years
- Every three years
- More than one of the above
Answer: Every five years
18. Which year's population level is considered by the 14th Finance Commission while deciding the share of states?
- 2001
- 1991
- 1971
- 1981
Answer: 1971
19. Who determines the centre - state financial relations from the following?
- Ministry of Finance
- National Development Council
- Planning Commission
- Finance Commission
Answer: Finance Commission
20. Which among the following have been constituted under Article 280 of the constitution?
- Finance Commission
- Central Vigilance Commission
- National Commission for Women (NCW)
- Attorney General of India
Answer: Finance Commission