BPSC CCE Prelims
Finance Commission Previous Year Questions (PYQs)
Practice solved questions for Finance Commission with detailed step-by-step solutions, key insights, and trend analysis for BPSC CCE PRELIMS.
Solved Previous Year Questions
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The primary function of the Finance Commission in India is to
Detailed Explanation:
The Finance Commission is a constitutional body under Article 280 that recommends the distribution of net proceeds of taxes between the Centre and the States.
It is appointed every five years by the President and also recommends grants-in-aid to states and measures to augment the Consolidated Fund of a State.
Who among the following determines the qualification which shall be requisite for appointment as member of the finance commission?
Detailed Explanation:
Article 280 of the Constitution provides for the constitution of a Finance Commission by the President every five years.
Parliament determines the qualifications of members and the manner of their selection through law, enacted as the Finance Commission (Miscellaneous Provisions) Act, 1951.
The President only appoints members based on qualifications prescribed by Parliament.
Who among the following is not a member of the 15th Finance Commission?
Detailed Explanation:
The 15th Finance Commission was constituted in November 2017 with N.K. Singh as Chairman and four members: Shaktikanta Das (later replaced by Ajay Narayan Jha), Anoop Singh, Ashok Kumar Lahiri, and Ramesh Chand.
Sudipto Mundle was a member of the 14th Finance Commission (2013–15), not the 15th Finance Commission.
Therefore, Sudipto Mundle was not part of the 15th Finance Commission, making Option 2 the correct answer.
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With reference to the Finance Commission of India, consider the following statements
- The Finance Commission is a statutory body
- The Finance Commission was set up under Article 280 of the Constitution
- The recommendations made by the Finance Commission are only advisory in nature.
- The first Finance Commission was set up in 1950.
Which of the above statements are correct?
Detailed Explanation:
The Finance Commission is a constitutional body (not statutory), established under Article 280 to recommend distribution of tax revenues between Centre and States.
- Statement 1 is Incorrect: Finance Commission is a constitutional body under Article 280, not a statutory body created by an Act of Parliament.
- Statement 2 is Correct: Article 280 of the Constitution mandates the establishment of the Finance Commission every five years.
- Statement 3 is Correct: Recommendations are advisory in nature; the President tables them before Parliament with an action-taken report.
- Statement 4 is Incorrect: The first Finance Commission was constituted in November 1951 under Chairman K.C. Neogy, not in 1950.
- Therefore, only statements 2 and 3 are correct, making Option 3 the correct answer.
According to the 15th Finance Commission’s recommendations, how much share will Bihar receive in divisible pool of Central taxes from 2021-26?
Detailed Explanation:
The 15th Finance Commission (2021-26) allocated Bihar 10.052% of the total divisible pool of Central taxes. This translates to 4.12% when considering Bihar's share in the overall distribution framework recommended by the Commission.
The Commission increased Bihar's allocation compared to the 14th FC, recognizing the state's fiscal needs, population, and developmental backwardness.
Therefore, Bihar receives 4.12% share, making Option 1 the correct answer.
Related Topics in Indian Polity
Panchayati Raj System
Parliamentary Procedures
President
Jurisdiction and Powers
Important Constitutional Amendments
Lok Sabha
Government of India Acts
Rajya Sabha
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