1. Which Article of the Constitution provides for Finance Commission?
a) Article 275
b) Article 280
c) Article 282
d) Article 300
Answer: b) Article 280
Explanation: Article 280 of the Constitution provides for the establishment of a Finance Commission by the President.
2. The Finance Commission is constituted by the:
a) Prime Minister
b) President
c) Parliament
d) Comptroller and Auditor General
Answer: b) President
Explanation: The President constitutes the Finance Commission every five years or earlier as needed.
3. The Finance Commission is constituted at an interval of:
a) 3 years
b) 4 years
c) 5 years
d) 6 years
Answer: c) 5 years
Explanation: Finance Commission is set up every 5 years or earlier by the President.
4. Which Finance Commission recommended the introduction of GST compensation to states?
a) 10th Finance Commission
b) 12th Finance Commission
c) 14th Finance Commission
d) 15th Finance Commission
Answer: d) 15th Finance Commission
Explanation: The 15th Finance Commission recommended GST compensation and revenue deficit grants.
5. The Finance Commission consists of a Chairman and how many members?
a) 3 members
b) 4 members
c) 5 members
d) 6 members
Answer: c) 5 members
Explanation: The Finance Commission consists of a Chairman and four other members.
6. The qualifications of Finance Commission members are decided by:
a) Parliament
b) President
c) Supreme Court
d) Prime Minister
Answer: a) Parliament
Explanation: Parliament determines the qualifications of Finance Commission members by law.
7. The recommendations of the Finance Commission are:
a) Binding on the Government
b) Advisory in nature
c) Enforceable by courts
d) Subject to Supreme Court approval
Answer: b) Advisory in nature
Explanation: The Finance Commission’s recommendations are advisory, not binding.
8. The main function of Finance Commission is to recommend distribution of:
a) Plan funds
b) Non-plan grants
c) Net proceeds of taxes between Centre and States
d) Salaries of MPs
Answer: c) Net proceeds of taxes between Centre and States
Explanation: Finance Commission primarily recommends distribution of tax revenue.
9. The Finance Commission is a:
a) Constitutional body
b) Statutory body
c) Executive body
d) Quasi-judicial body
Answer: a) Constitutional body
Explanation: Established under Article 280, it is a constitutional body.
10. Who lays the report of the Finance Commission before Parliament?
a) President
b) Prime Minister
c) Finance Minister
d) Speaker
Answer: a) President
Explanation: The President lays the Finance Commission report before both Houses of Parliament.
11. Grants-in-aid to states out of the Consolidated Fund of India are recommended by:
a) NITI Aayog
b) Finance Commission
c) Planning Commission
d) Reserve Bank of India
Answer: b) Finance Commission
Explanation: Article 275 empowers the Finance Commission to recommend grants-in-aid to states.
12. Who decides the qualifications of the Chairman of Finance Commission?
a) President
b) Prime Minister
c) Parliament
d) Finance Ministry
Answer: c) Parliament
Explanation: Parliament prescribes qualifications for Chairman and Members of Finance Commission.
13. The first Finance Commission was constituted in:
a) 1947
b) 1950
c) 1951
d) 1952
Answer: c) 1951
Explanation: The first Finance Commission was set up in 1951 under K.C. Neogy as Chairman.
14. The recommendations of Finance Commission come into effect from:
a) Date decided by Finance Ministry
b) Date mentioned by President
c) Date of publication
d) Date of approval by Parliament
Answer: d) Date of approval by Parliament
Explanation: Finance Commission recommendations are placed in Parliament and implemented after approval.
15. The Finance Commission reports to:
a) Prime Minister
b) President
c) Speaker of Lok Sabha
d) Finance Minister
Answer: b) President
Explanation: The Finance Commission submits its report to the President of India.
16. Which Article empowers Finance Commission to recommend distribution of financial resources?
a) Article 275
b) Article 280
c) Article 282
d) Article 289
Answer: b) Article 280
Explanation: Article 280 specifies the functions of Finance Commission.
17. Which one is NOT a function of Finance Commission?
a) Distribution of net tax proceeds
b) Recommending principles for grants-in-aid
c) Recommending measures to augment resources of Panchayats
d) Deciding monetary policy
Answer: d) Deciding monetary policy
Explanation: Monetary policy is decided by RBI, not Finance Commission.
18. Finance Commission recommendations are related to which fund?
a) Consolidated Fund of India
b) Contingency Fund of India
c) Public Account of India
d) National Investment Fund
Answer: a) Consolidated Fund of India
Explanation: Recommendations are about distribution and grants from Consolidated Fund of India.
19. Who determines the qualifications of members of Finance Commission?
a) President
b) Prime Minister
c) Parliament
d) Cabinet
Answer: c) Parliament
Explanation: As per Constitution, Parliament by law decides qualifications.
20. Who constitutes the Finance Commission under Article 280?
a) Prime Minister
b) President
c) Finance Minister
d) Speaker
Answer: b) President
Explanation: The President establishes Finance Commission every 5 years.
21. Which of the following is TRUE about Finance Commission?
a) It is a constitutional body under Article 280
b) It is advisory in nature
c) It deals with distribution of financial resources between Centre and States
d) All of the above
Answer: d) All of the above
Explanation: Finance Commission is constitutional, advisory, and deals with fiscal federalism.
22. Finance Commission submits its recommendations to:
a) Prime Minister
b) Parliament
c) President
d) Finance Minister
Answer: c) President
Explanation: It submits report to President, who lays it before Parliament.
23. The term of Finance Commission is:
a) 3 years
b) 5 years
c) 6 years
d) 10 years
Answer: b) 5 years
Explanation: The Finance Commission is reconstituted every 5 years or earlier.
24. Which Finance Commission recommended 42% share of states in divisible pool of taxes?
a) 12th
b) 13th
c) 14th
d) 15th
Answer: c) 14th
Explanation: The 14th Finance Commission increased states’ share to 42%.
25. The President can constitute Finance Commission earlier than 5 years if:
a) Parliament passes a law
b) States demand
c) There arises a special need
d) Prime Minister recommends
Answer: c) There arises a special need
Explanation: The President can set up Finance Commission earlier than 5 years if deemed necessary.
26. The recommendations of the Finance Commission are implemented through:
a) Presidential Ordinance
b) Union Budget
c) Parliamentary Resolution
d) State Assemblies
Answer: b) Union Budget
Explanation: The Finance Commission’s recommendations are incorporated into the Union Budget after government approval.
27. Which Finance Commission first recommended measures to augment the resources of Panchayats and Municipalities?
a) 10th Finance Commission
b) 11th Finance Commission
c) 12th Finance Commission
d) 13th Finance Commission
Answer: b) 11th Finance Commission
Explanation: The 11th Finance Commission (1998) was the first to recommend measures to augment the resources of Panchayats and Municipalities (73rd and 74th Amendments).
28. The Finance Commission is constituted under which part of the Constitution?
a) Part XII
b) Part XIII
c) Part XIV
d) Part XV
Answer: a) Part XII
Explanation: Finance Commission is provided under Part XII, dealing with Finance, Property, Contracts, and Suits.
29. The recommendations of the Finance Commission are finally accepted by:
a) Parliament
b) President
c) Council of Ministers
d) Union Cabinet
Answer: d) Union Cabinet
Explanation: Recommendations are advisory; final acceptance lies with the Union Cabinet.
30. Which Finance Commission recommended Goods and Services Tax (GST) compensation to states?
a) 13th
b) 14th
c) 15th
d) 12th
Answer: c) 15th
Explanation: The 15th Finance Commission recommended GST compensation to states after implementation of GST.
31. Which Article deals with grants-in-aid of the revenues of states in need of assistance?
a) Article 275
b) Article 280
c) Article 282
d) Article 293
Answer: a) Article 275
Explanation: Article 275 provides for statutory grants-in-aid to states in need of assistance, recommended by Finance Commission.
32. Who appoints the Chairman of Finance Commission?
a) Prime Minister
b) Finance Minister
c) President
d) Vice-President
Answer: c) President
Explanation: The President appoints the Chairman and members of the Finance Commission.
33. The Finance Commission mainly recommends sharing of revenues from which taxes?
a) Direct taxes only
b) Indirect taxes only
c) Net proceeds of all taxes between Centre and States
d) Non-tax revenues
Answer: c) Net proceeds of all taxes between Centre and States
Explanation: Its primary duty is to recommend the distribution of net proceeds of taxes.
34. Who determines the salary and allowances of Finance Commission members?
a) Parliament
b) President
c) Finance Ministry
d) Union Cabinet
Answer: a) Parliament
Explanation: The Parliament by law decides the salaries, allowances, and conditions of service.
35. Which of the following is NOT a recommendation function of the Finance Commission?
a) Sharing of taxes between Centre and States
b) Principles of grants-in-aid to states
c) Distribution of loan assistance from World Bank
d) Augmentation of resources of Panchayats
Answer: c) Distribution of loan assistance from World Bank
Explanation: External loans are not a subject of Finance Commission.
36. The 14th Finance Commission was chaired by:
a) Y.V. Reddy
b) Vijay Kelkar
c) C. Rangarajan
d) N.K. Singh
Answer: a) Y.V. Reddy
Explanation: Y.V. Reddy, former RBI Governor, chaired the 14th Finance Commission.
37. The 15th Finance Commission was chaired by:
a) C. Rangarajan
b) Y.V. Reddy
c) N.K. Singh
d) K.C. Neogy
Answer: c) N.K. Singh
Explanation: N.K. Singh chaired the 15th Finance Commission (2020–25).
38. The recommendations of the Finance Commission are placed before Parliament under whose responsibility?
a) Finance Minister
b) President
c) Prime Minister
d) Speaker of Lok Sabha
Answer: b) President
Explanation: The President places the report along with an explanatory memorandum before Parliament.
39. The Finance Commission is considered an instrument to maintain:
a) Administrative federalism
b) Cooperative federalism
c) Political federalism
d) Judicial federalism
Answer: b) Cooperative federalism
Explanation: It balances financial relations between Centre and States, strengthening cooperative federalism.
40. Which Finance Commission recommended an increase of state’s share in central taxes from 32% to 42%?
a) 12th Finance Commission
b) 13th Finance Commission
c) 14th Finance Commission
d) 15th Finance Commission
Answer: c) 14th Finance Commission
Explanation: The 14th Finance Commission raised the share to 42%.
41. Under which Article does the Finance Commission recommend principles for augmenting the resources of municipalities?
a) Article 280(3)(a)
b) Article 280(3)(bb)
c) Article 280(3)(c)
d) Article 280(3)(d)
Answer: d) Article 280(3)(d)
Explanation: Article 280(3)(d) empowers Finance Commission to recommend measures to augment resources of municipalities.
42. Which Finance Commission recommended revenue deficit grants to states?
a) 11th
b) 12th
c) 14th
d) 15th
Answer: d) 15th
Explanation: The 15th Finance Commission recommended revenue deficit grants to states.
43. The Finance Commission is a balance wheel of:
a) Judicial relations
b) Legislative relations
c) Fiscal relations
d) Political relations
Answer: c) Fiscal relations
Explanation: It is called a balance wheel of fiscal federalism.
44. The Finance Commission can recommend distribution of financial resources between:
a) Centre and States only
b) States only
c) Centre and Panchayats only
d) Centre, States, and Local Bodies
Answer: d) Centre, States, and Local Bodies
Explanation: After 73rd and 74th Amendments, Finance Commission also covers Panchayats and Municipalities.
45. The President constitutes the Finance Commission under:
a) Article 275
b) Article 280(1)
c) Article 282
d) Article 289
Answer: b) Article 280(1)
Explanation: Article 280(1) mandates the President to constitute Finance Commission.
46. Which Finance Commission was set up during the implementation of GST?
a) 14th
b) 15th
c) 13th
d) 12th
Answer: b) 15th
Explanation: GST was implemented in 2017; the 15th Finance Commission was tasked with its impact.
47. The Finance Commission recommendations are valid for a period of:
a) 3 years
b) 4 years
c) 5 years
d) 6 years
Answer: c) 5 years
Explanation: Normally recommendations are made for a 5-year period.
48. Which body recommends principles for allocation of grants to states out of the Consolidated Fund of India?
a) Planning Commission
b) Finance Commission
c) NITI Aayog
d) Reserve Bank of India
Answer: b) Finance Commission
Explanation: Finance Commission recommends grants to states under Article 275.
49. Which Finance Commission recommended debt relief measures for states?
a) 11th
b) 12th
c) 13th
d) 14th
Answer: b) 12th
Explanation: The 12th Finance Commission recommended debt relief and fiscal consolidation.
50. Who decides the number of members in the Finance Commission?
a) Parliament
b) President
c) Prime Minister
d) Supreme Court
Answer: b) President
Explanation: The President decides the composition, but generally it is one Chairman + four Members.
51. The recommendations of the Finance Commission are—
A) Binding on the government
B) Advisory in nature
C) Partly binding, partly advisory
D) Mandatory for Parliament
Answer: B
Explanation: Finance Commission recommendations are advisory in nature. The government may accept, modify, or reject them.
52. Who decides the distribution of net proceeds of taxes between the Centre and the States?
A) Union Cabinet
B) Parliament
C) Finance Commission
D) Planning Commission
Answer: C
Explanation: Finance Commission recommends the distribution of net proceeds of taxes between Union and States under Article 280.
53. Which of the following is NOT a function of the Finance Commission?
A) Recommend principles for grants-in-aid to States
B) Distribution of Union excise duties
C) Allocation of resources to Panchayats and Municipalities
D) Distribution of income-tax proceeds
Answer: C
Explanation: Finance Commission does not directly allocate resources to Panchayats/Municipalities; State Finance Commissions do.
54. The Finance Commission is appointed by—
A) Prime Minister
B) President
C) Finance Minister
D) Lok Sabha Speaker
Answer: B
Explanation: Under Article 280, the President of India appoints the Finance Commission every five years.
55. Which Article provides for grants-in-aid to States from the Consolidated Fund of India?
A) Article 270
B) Article 275
C) Article 280
D) Article 282
Answer: B
Explanation: Article 275 provides for statutory grants-in-aid to certain States.
56. Which of the following taxes is excluded from the purview of the Finance Commission?
A) Income Tax
B) Corporate Tax
C) Goods and Services Tax (GST)
D) Agricultural Income Tax
Answer: D
Explanation: Agricultural income tax belongs exclusively to the States, hence not shared via Finance Commission.
57. Finance Commission reports are laid before—
A) Parliament
B) Supreme Court
C) Finance Ministry only
D) State Legislatures
Answer: A
Explanation: The recommendations of the Finance Commission are submitted to the President and laid before Parliament.
58. Which Finance Commission first recommended revenue deficit grants?
A) 7th Finance Commission
B) 9th Finance Commission
C) 10th Finance Commission
D) 11th Finance Commission
Answer: C
Explanation: The 10th Finance Commission introduced revenue deficit grants to cover States’ deficits.
59. Which Finance Commission recommended the introduction of the Goods and Services Tax (GST)?
A) 12th Finance Commission
B) 13th Finance Commission
C) 14th Finance Commission
D) 15th Finance Commission
Answer: B
Explanation: The 13th Finance Commission (2007) recommended the introduction of GST.
60. Which Finance Commission introduced the concept of ‘Performance Grants’?
A) 10th Finance Commission
B) 11th Finance Commission
C) 12th Finance Commission
D) 13th Finance Commission
Answer: D
Explanation: 13th Finance Commission introduced performance-based grants for better fiscal discipline.
61. The vertical distribution recommended by the Finance Commission refers to—
A) Distribution among different States
B) Distribution between Union and States
C) Distribution within one State
D) Distribution among local bodies
Answer: B
Explanation: Vertical distribution means division of resources between Union and States.
62. The horizontal distribution recommended by the Finance Commission refers to—
A) Distribution among different States
B) Distribution between Union and States
C) Distribution among districts
D) Distribution to Panchayats
Answer: A
Explanation: Horizontal distribution is allocation among different States.
63. Which of the following is true regarding Finance Commission recommendations?
A) They are final and unquestionable
B) They are implemented without Parliament’s approval
C) They require approval of the President and Parliament
D) They are judicially enforceable
Answer: C
Explanation: Recommendations need acceptance by the government and approval in Parliament.
64. The Finance Commission shares tax revenues under which fund?
A) Public Account of India
B) Contingency Fund of India
C) Consolidated Fund of India
D) Planning Fund of India
Answer: C
Explanation: Tax revenue is shared from the Consolidated Fund of India.
65. Grants given by Finance Commission for meeting expenditure of States on special needs are called—
A) Performance grants
B) Specific purpose grants
C) Statutory grants
D) Revenue deficit grants
Answer: C
Explanation: Statutory grants under Article 275 are given for special needs.
66. Which Finance Commission recommended higher share of States in central taxes from 32% to 42%?
A) 12th Finance Commission
B) 13th Finance Commission
C) 14th Finance Commission
D) 15th Finance Commission
Answer: C
Explanation: 14th Finance Commission increased States’ share from 32% to 42%.
67. Which of the following is NOT true about the Finance Commission?
A) It is a quasi-judicial body
B) It is an advisory body
C) It distributes resources between Union and States
D) It decides monetary policy
Answer: D
Explanation: Monetary policy is decided by RBI, not the Finance Commission.
68. The Finance Commission is responsible for recommending principles governing—
A) Loans given by Union to States
B) Distribution of net proceeds of certain taxes
C) Distribution of wealth among individuals
D) Budget presentation in Parliament
Answer: B
Explanation: Article 280 empowers Finance Commission to recommend distribution of tax proceeds.
69. The Finance Commission does not deal with—
A) Distribution of Union taxes
B) Grants-in-aid to States
C) Distribution of financial resources to Panchayats
D) Distribution of excise duties
Answer: C
Explanation: Panchayat finances are handled by State Finance Commissions.
70. Which body recommends financial devolution to local bodies?
A) Union Finance Commission
B) State Finance Commission
C) Planning Commission
D) NITI Aayog
Answer: B
Explanation: State Finance Commissions recommend financial distribution to Panchayats and Municipalities.
71. The first Finance Commission was constituted under the chairmanship of—
A) K. Santhanam
B) K.C. Neogy
C) Y.V. Reddy
D) C. Rangarajan
Answer: B
Explanation: The first Finance Commission (1951) was chaired by K.C. Neogy.
72. Which Article empowers the Finance Commission to suggest measures for augmenting State resources?
A) Article 270
B) Article 275
C) Article 280
D) Article 282
Answer: C
Explanation: Article 280 empowers Finance Commission to suggest measures to augment State Consolidated Funds.
73. Recommendations of the Finance Commission are implemented through—
A) Executive orders only
B) Presidential orders and Parliamentary approval
C) Supreme Court directions
D) State legislatures directly
Answer: B
Explanation: Recommendations are implemented through Presidential orders and Parliamentary approval.
74. Which Finance Commission’s recommendations are currently in force (2021–2026)?
A) 14th Finance Commission
B) 15th Finance Commission
C) 16th Finance Commission
D) 13th Finance Commission
Answer: B
Explanation: The 15th Finance Commission (2021–2026) chaired by N.K. Singh is in force.
75. The recommendations of the Finance Commission are considered by—
A) President only
B) Parliament only
C) President and Parliament
D) Union Cabinet alone
Answer: C
Explanation: Recommendations are submitted to the President, then placed before Parliament for consideration.
76. Which of the following bodies is described as a quasi-judicial body in the Constitution?
A) Election Commission
B) Finance Commission
C) UPSC
D) CAG
Answer: B) Finance Commission
Explanation: The Finance Commission is often described as a quasi-judicial body as it adjudicates financial relations between Union and States.
77. Finance Commission is mainly related to—
A) Administrative Reforms
B) Financial Relations
C) Political Reforms
D) Electoral Reforms
Answer: B) Financial Relations
Explanation: The Finance Commission deals with the division of finances between Union and States under Article 280.
78. Finance Commission’s recommendations are—
A) Binding on the Government
B) Advisory in nature
C) Decided by Parliament
D) Decided by Supreme Court
Answer: B) Advisory in nature
Explanation: The recommendations of the Finance Commission are advisory, but generally accepted by the Union Government.
79. The Finance Commission reviews—
A) Distribution of revenue between Centre and States
B) Lok Sabha election process
C) Judicial appointments
D) Citizenship rules
Answer: A) Distribution of revenue between Centre and States
Explanation: Its primary role is revenue distribution, ensuring fiscal balance between Union and States.
80. Which Article provides that Finance Commission recommendations shall be laid before Parliament?
A) Article 280(3)
B) Article 281
C) Article 282
D) Article 283
Answer: B) Article 281
Explanation: Article 281 mandates that the President shall lay Finance Commission recommendations before both Houses of Parliament.
81. The Finance Commission is a—
A) Permanent Body
B) Quasi-permanent Body
C) Temporary Body
D) Judicial Body
Answer: C) Temporary Body
Explanation: It is constituted every 5 years, so it is not permanent.
82. Which Finance Commission recommended the creation of a Consolidated Fund for States?
A) 1st
B) 2nd
C) 3rd
D) 4th
Answer: A) 1st
Explanation: The 1st Finance Commission (1951) recommended the creation of a Consolidated Fund for States.
83. Finance Commission recommendations are implemented through—
A) Finance Bill
B) Appropriation Bill
C) Presidential Order
D) Constitutional Amendment
Answer: C) Presidential Order
Explanation: After acceptance, recommendations are implemented by a Presidential order.
84. Finance Commission deals with which fund?
A) Contingency Fund of India
B) Consolidated Fund of India
C) Public Account of India
D) All of the above
Answer: B) Consolidated Fund of India
Explanation: It makes recommendations regarding the distribution of taxes from the Consolidated Fund of India.
85. Which Finance Commission introduced “Debt Relief” for States?
A) 7th
B) 9th
C) 12th
D) 14th
Answer: C) 12th
Explanation: The 12th Finance Commission (2005) introduced measures for debt relief to States.
86. Which Finance Commission recommended GST compensation to States?
A) 13th
B) 14th
C) 15th
D) 16th
Answer: C) 15th
Explanation: The 15th Finance Commission provided recommendations for GST compensation to States.
87. Which Finance Commission recommended 42% devolution of central taxes to States?
A) 12th
B) 13th
C) 14th
D) 15th
Answer: C) 14th
Explanation: The 14th Finance Commission raised States’ share in central taxes from 32% to 42%.
88. The Finance Commission is constituted to maintain—
A) Administrative balance
B) Fiscal federalism
C) Political unity
D) Judicial independence
Answer: B) Fiscal federalism
Explanation: The Commission ensures proper fiscal federalism between Union and States.
89. Who examines Finance Commission recommendations before acceptance?
A) Supreme Court
B) Finance Ministry
C) Parliament
D) CAG
Answer: B) Finance Ministry
Explanation: The Ministry of Finance examines the recommendations before final implementation.
90. The Finance Commission has jurisdiction over—
A) Union only
B) States only
C) Union and States
D) Municipalities
Answer: C) Union and States
Explanation: It works on the financial distribution between Union and States.
91. Which Commission recommended “Equalisation Grants”?
A) 2nd
B) 4th
C) 10th
D) 12th
Answer: A) 2nd
Explanation: The 2nd Finance Commission introduced the concept of equalisation grants to reduce regional disparities.
92. Which Finance Commission recommended grants for Panchayats and Municipalities?
A) 10th
B) 11th
C) 12th
D) 13th
Answer: B) 11th
Explanation: The 11th Finance Commission (1998) first recommended grants for Panchayats and Municipalities.
93. Who prescribes the conditions of service of Finance Commission members?
A) President
B) Parliament
C) Cabinet
D) Finance Minister
Answer: B) Parliament
Explanation: Parliament decides by law the conditions of service of members.
94. Which Finance Commission recommended fiscal consolidation and FRBM targets?
A) 11th
B) 12th
C) 13th
D) 15th
Answer: C) 13th
Explanation: The 13th Finance Commission recommended fiscal consolidation with FRBM targets.
95. Who submits Finance Commission’s report?
A) Prime Minister
B) Finance Minister
C) President
D) Speaker
Answer: C) President
Explanation: The Finance Commission submits its report to the President.
96. Grants-in-aid to States are recommended under—
A) Article 270
B) Article 275
C) Article 280
D) Article 282
Answer: B) Article 275
Explanation: Article 275 provides for grants-in-aid to States based on Finance Commission recommendations.
97. The principle of “equity and efficiency” in revenue distribution was emphasised by—
A) 9th Finance Commission
B) 10th Finance Commission
C) 12th Finance Commission
D) 14th Finance Commission
Answer: D) 14th Finance Commission
Explanation: The 14th Finance Commission stressed on equity and efficiency in fiscal transfers.
98. Finance Commission recommendations are placed before Parliament by—
A) Finance Minister
B) Speaker
C) President
D) Prime Minister
Answer: C) President
Explanation: As per Article 281, the President lays the recommendations before Parliament.
99. Which Commission made provision for performance-based grants to States?
A) 12th
B) 13th
C) 14th
D) 15th
Answer: B) 13th
Explanation: The 13th Finance Commission introduced performance-based grants to improve governance.
100. Finance Commission is an instrument of—
A) Political federalism
B) Cooperative federalism
C) Administrative federalism
D) Competitive federalism
Answer: B) Cooperative federalism
Explanation: The Finance Commission strengthens cooperative federalism by balancing Union–State finances.