{"id":12347,"date":"2025-08-30T02:28:57","date_gmt":"2025-08-30T01:28:57","guid":{"rendered":"https:\/\/mcqsadda.com\/?p=12347"},"modified":"2025-10-23T10:47:51","modified_gmt":"2025-10-23T09:47:51","slug":"finance-commission-top-100-mcqs-with-answer-and-explanation","status":"publish","type":"post","link":"https:\/\/mcqsadda.com\/index.php\/2025\/08\/30\/finance-commission-top-100-mcqs-with-answer-and-explanation\/","title":{"rendered":"Finance Commission Top 100 MCQs With Answer and Explanation"},"content":{"rendered":"\n

1. Which Article of the Constitution provides for Finance Commission?
<\/mark><\/strong>a) Article 275
b) Article 280
c) Article 282
d) Article 300
Answer:<\/strong> b) Article 280
Explanation:<\/strong> Article 280 of the Constitution provides for the establishment of a Finance Commission by the President.<\/p>\n\n\n\n

2. The Finance Commission is constituted by the:
<\/mark><\/strong>a) Prime Minister
b) President
c) Parliament
d) Comptroller and Auditor General
Answer:<\/strong> b) President
Explanation:<\/strong> The President constitutes the Finance Commission every five years or earlier as needed.<\/p>\n\n\n\n

3. The Finance Commission is constituted at an interval of:
<\/mark><\/strong>a) 3 years
b) 4 years
c) 5 years
d) 6 years
Answer:<\/strong> c) 5 years
Explanation:<\/strong> Finance Commission is set up every 5 years or earlier by the President.<\/p>\n\n\n\n

4. Which Finance Commission recommended the introduction of GST compensation to states?
<\/mark><\/strong>a) 10th Finance Commission
b) 12th Finance Commission
c) 14th Finance Commission
d) 15th Finance Commission
Answer:<\/strong> d) 15th Finance Commission
Explanation:<\/strong> The 15th Finance Commission recommended GST compensation and revenue deficit grants.<\/p>\n\n\n\n

5. The Finance Commission consists of a Chairman and how many members?
<\/mark><\/strong>a) 3 members
b) 4 members
c) 5 members
d) 6 members
Answer:<\/strong> c) 5 members
Explanation:<\/strong> The Finance Commission consists of a Chairman and four other members.<\/p>\n\n\n\n

6. The qualifications of Finance Commission members are decided by:
<\/mark><\/strong>a) Parliament
b) President
c) Supreme Court
d) Prime Minister
Answer:<\/strong> a) Parliament
Explanation:<\/strong> Parliament determines the qualifications of Finance Commission members by law.<\/p>\n\n\n\n

7. The recommendations of the Finance Commission are:
<\/mark><\/strong>a) Binding on the Government
b) Advisory in nature
c) Enforceable by courts
d) Subject to Supreme Court approval
Answer:<\/strong> b) Advisory in nature
Explanation:<\/strong> The Finance Commission\u2019s recommendations are advisory, not binding.<\/p>\n\n\n\n

8. The main function of Finance Commission is to recommend distribution of:
<\/mark><\/strong>a) Plan funds
b) Non-plan grants
c) Net proceeds of taxes between Centre and States
d) Salaries of MPs
Answer:<\/strong> c) Net proceeds of taxes between Centre and States
Explanation:<\/strong> Finance Commission primarily recommends distribution of tax revenue.<\/p>\n\n\n\n

9. The Finance Commission is a:
<\/mark><\/strong>a) Constitutional body
b) Statutory body
c) Executive body
d) Quasi-judicial body
Answer:<\/strong> a) Constitutional body
Explanation:<\/strong> Established under Article 280, it is a constitutional body.<\/p>\n\n\n\n

10. Who lays the report of the Finance Commission before Parliament?
<\/mark><\/strong>a) President
b) Prime Minister
c) Finance Minister
d) Speaker
Answer:<\/strong> a) President
Explanation:<\/strong> The President lays the Finance Commission report before both Houses of Parliament.<\/p>\n\n\n\n

11. Grants-in-aid to states out of the Consolidated Fund of India are recommended by:
<\/mark><\/strong>a) NITI Aayog
b) Finance Commission
c) Planning Commission
d) Reserve Bank of India
Answer:<\/strong> b) Finance Commission
Explanation:<\/strong> Article 275 empowers the Finance Commission to recommend grants-in-aid to states.<\/p>\n\n\n\n

12. Who decides the qualifications of the Chairman of Finance Commission?
<\/mark><\/strong>a) President
b) Prime Minister
c) Parliament
d) Finance Ministry
Answer:<\/strong> c) Parliament
Explanation:<\/strong> Parliament prescribes qualifications for Chairman and Members of Finance Commission.<\/p>\n\n\n\n

13. The first Finance Commission was constituted in:
<\/mark><\/strong>a) 1947
b) 1950
c) 1951
d) 1952
Answer:<\/strong> c) 1951
Explanation:<\/strong> The first Finance Commission was set up in 1951 under K.C. Neogy as Chairman.<\/p>\n\n\n\n

14. The recommendations of Finance Commission come into effect from:
<\/mark><\/strong>a) Date decided by Finance Ministry
b) Date mentioned by President
c) Date of publication
d) Date of approval by Parliament
Answer:<\/strong> d) Date of approval by Parliament
Explanation:<\/strong> Finance Commission recommendations are placed in Parliament and implemented after approval.<\/p>\n\n\n\n

15. The Finance Commission reports to:
<\/mark><\/strong>a) Prime Minister
b) President
c) Speaker of Lok Sabha
d) Finance Minister
Answer:<\/strong> b) President
Explanation:<\/strong> The Finance Commission submits its report to the President of India.<\/p>\n\n\n\n

16. Which Article empowers Finance Commission to recommend distribution of financial resources?
<\/mark><\/strong>a) Article 275
b) Article 280
c) Article 282
d) Article 289
Answer:<\/strong> b) Article 280
Explanation:<\/strong> Article 280 specifies the functions of Finance Commission.<\/p>\n\n\n\n

17. Which one is NOT a function of Finance Commission?
<\/mark><\/strong>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:<\/strong> d) Deciding monetary policy
Explanation:<\/strong> Monetary policy is decided by RBI, not Finance Commission.<\/p>\n\n\n\n

18. Finance Commission recommendations are related to which fund?
<\/mark><\/strong>a) Consolidated Fund of India
b) Contingency Fund of India
c) Public Account of India
d) National Investment Fund
Answer:<\/strong> a) Consolidated Fund of India
Explanation:<\/strong> Recommendations are about distribution and grants from Consolidated Fund of India.<\/p>\n\n\n\n

19. Who determines the qualifications of members of Finance Commission?
<\/mark><\/strong>a) President
b) Prime Minister
c) Parliament
d) Cabinet
Answer:<\/strong> c) Parliament
Explanation:<\/strong> As per Constitution, Parliament by law decides qualifications.<\/p>\n\n\n\n

20. Who constitutes the Finance Commission under Article 280?
<\/mark><\/strong>a) Prime Minister
b) President
c) Finance Minister
d) Speaker
Answer:<\/strong> b) President
Explanation:<\/strong> The President establishes Finance Commission every 5 years.<\/p>\n\n\n\n

21. Which of the following is TRUE about Finance Commission?
<\/mark><\/strong>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:<\/strong> d) All of the above
Explanation:<\/strong> Finance Commission is constitutional, advisory, and deals with fiscal federalism.<\/p>\n\n\n\n

22. Finance Commission submits its recommendations to:
<\/mark><\/strong>a) Prime Minister
b) Parliament
c) President
d) Finance Minister
Answer:<\/strong> c) President
Explanation:<\/strong> It submits report to President, who lays it before Parliament.<\/p>\n\n\n\n

23. The term of Finance Commission is:
<\/mark><\/strong>a) 3 years
b) 5 years
c) 6 years
d) 10 years
Answer:<\/strong> b) 5 years
Explanation:<\/strong> The Finance Commission is reconstituted every 5 years or earlier.<\/p>\n\n\n\n

24. Which Finance Commission recommended 42% share of states in divisible pool of taxes?
<\/mark><\/strong>a) 12th
b) 13th
c) 14th
d) 15th
Answer:<\/strong> c) 14th
Explanation:<\/strong> The 14th Finance Commission increased states\u2019 share to 42%.<\/p>\n\n\n\n

25. The President can constitute Finance Commission earlier than 5 years if:
<\/mark><\/strong>a) Parliament passes a law
b) States demand
c) There arises a special need
d) Prime Minister recommends
Answer:<\/strong> c) There arises a special need
Explanation:<\/strong> The President can set up Finance Commission earlier than 5 years if deemed necessary.<\/p>\n\n\n\n

26. The recommendations of the Finance Commission are implemented through:
<\/mark><\/strong>a) Presidential Ordinance
b) Union Budget
c) Parliamentary Resolution
d) State Assemblies
Answer:<\/strong> b) Union Budget
Explanation:<\/strong> The Finance Commission\u2019s recommendations are incorporated into the Union Budget after government approval.<\/p>\n\n\n\n

27. Which Finance Commission first recommended measures to augment the resources of Panchayats and Municipalities?
<\/mark><\/strong>a) 10th Finance Commission
b) 11th Finance Commission
c) 12th Finance Commission
d) 13th Finance Commission
Answer:<\/strong> b) 11th Finance Commission
Explanation:<\/strong> The 11th Finance Commission (1998) was the first to recommend measures to augment the resources of Panchayats and Municipalities (73rd and 74th Amendments).<\/p>\n\n\n\n

28. The Finance Commission is constituted under which part of the Constitution?
<\/mark><\/strong>a) Part XII
b) Part XIII
c) Part XIV
d) Part XV
Answer:<\/strong> a) Part XII
Explanation:<\/strong> Finance Commission is provided under Part XII, dealing with Finance, Property, Contracts, and Suits.<\/p>\n\n\n\n

29. The recommendations of the Finance Commission are finally accepted by:
<\/mark><\/strong>a) Parliament
b) President
c) Council of Ministers
d) Union Cabinet
Answer:<\/strong> d) Union Cabinet
Explanation:<\/strong> Recommendations are advisory; final acceptance lies with the Union Cabinet.<\/p>\n\n\n\n

30. Which Finance Commission recommended Goods and Services Tax (GST) compensation to states?
<\/mark><\/strong>a) 13th
b) 14th
c) 15th
d) 12th
Answer:<\/strong> c) 15th
Explanation:<\/strong> The 15th Finance Commission recommended GST compensation to states after implementation of GST.<\/p>\n\n\n\n

31. Which Article deals with grants-in-aid of the revenues of states in need of assistance?
<\/mark><\/strong>a) Article 275
b) Article 280
c) Article 282
d) Article 293
Answer:<\/strong> a) Article 275
Explanation:<\/strong> Article 275 provides for statutory grants-in-aid to states in need of assistance, recommended by Finance Commission.<\/p>\n\n\n\n

32. Who appoints the Chairman of Finance Commission?
<\/mark><\/strong>a) Prime Minister
b) Finance Minister
c) President
d) Vice-President
Answer:<\/strong> c) President
Explanation:<\/strong> The President appoints the Chairman and members of the Finance Commission.<\/p>\n\n\n\n

33. The Finance Commission mainly recommends sharing of revenues from which taxes?
<\/mark><\/strong>a) Direct taxes only
b) Indirect taxes only
c) Net proceeds of all taxes between Centre and States
d) Non-tax revenues
Answer:<\/strong> c) Net proceeds of all taxes between Centre and States
Explanation:<\/strong> Its primary duty is to recommend the distribution of net proceeds of taxes.<\/p>\n\n\n\n

34. Who determines the salary and allowances of Finance Commission members?
<\/mark><\/strong>a) Parliament
b) President
c) Finance Ministry
d) Union Cabinet
Answer:<\/strong> a) Parliament
Explanation:<\/strong> The Parliament by law decides the salaries, allowances, and conditions of service.<\/p>\n\n\n\n

35. Which of the following is NOT a recommendation function of the Finance Commission?
<\/mark><\/strong>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:<\/strong> c) Distribution of loan assistance from World Bank
Explanation:<\/strong> External loans are not a subject of Finance Commission.<\/p>\n\n\n\n

36. The 14th Finance Commission was chaired by:
<\/mark><\/strong>a) Y.V. Reddy
b) Vijay Kelkar
c) C. Rangarajan
d) N.K. Singh
Answer:<\/strong> a) Y.V. Reddy
Explanation:<\/strong> Y.V. Reddy, former RBI Governor, chaired the 14th Finance Commission.<\/p>\n\n\n\n

37. The 15th Finance Commission was chaired by:
<\/mark><\/strong>a) C. Rangarajan
b) Y.V. Reddy
c) N.K. Singh
d) K.C. Neogy
Answer:<\/strong> c) N.K. Singh
Explanation:<\/strong> N.K. Singh chaired the 15th Finance Commission (2020\u201325).<\/p>\n\n\n\n

38. The recommendations of the Finance Commission are placed before Parliament under whose responsibility?
<\/mark><\/strong>a) Finance Minister
b) President
c) Prime Minister
d) Speaker of Lok Sabha
Answer:<\/strong> b) President
Explanation:<\/strong> The President places the report along with an explanatory memorandum before Parliament.<\/p>\n\n\n\n

39. The Finance Commission is considered an instrument to maintain:
<\/mark><\/strong>a) Administrative federalism
b) Cooperative federalism
c) Political federalism
d) Judicial federalism
Answer:<\/strong> b) Cooperative federalism
Explanation:<\/strong> It balances financial relations between Centre and States, strengthening cooperative federalism.<\/p>\n\n\n\n

40. Which Finance Commission recommended an increase of state\u2019s share in central taxes from 32% to 42%?
<\/mark><\/strong>a) 12th Finance Commission
b) 13th Finance Commission
c) 14th Finance Commission
d) 15th Finance Commission
Answer:<\/strong> c) 14th Finance Commission
Explanation:<\/strong> The 14th Finance Commission raised the share to 42%.<\/p>\n\n\n\n

41. Under which Article does the Finance Commission recommend principles for augmenting the resources of municipalities?
<\/mark><\/strong>a) Article 280(3)(a)
b) Article 280(3)(bb)
c) Article 280(3)(c)
d) Article 280(3)(d)
Answer:<\/strong> d) Article 280(3)(d)
Explanation:<\/strong> Article 280(3)(d) empowers Finance Commission to recommend measures to augment resources of municipalities.<\/p>\n\n\n\n

42. Which Finance Commission recommended revenue deficit grants to states?
<\/mark><\/strong>a) 11th
b) 12th
c) 14th
d) 15th
Answer:<\/strong> d) 15th
Explanation:<\/strong> The 15th Finance Commission recommended revenue deficit grants to states.<\/p>\n\n\n\n

43. The Finance Commission is a balance wheel of:
<\/mark><\/strong>a) Judicial relations
b) Legislative relations
c) Fiscal relations
d) Political relations
Answer:<\/strong> c) Fiscal relations
Explanation:<\/strong> It is called a balance wheel of fiscal federalism.<\/p>\n\n\n\n

44. The Finance Commission can recommend distribution of financial resources between:
<\/mark><\/strong>a) Centre and States only
b) States only
c) Centre and Panchayats only
d) Centre, States, and Local Bodies
Answer:<\/strong> d) Centre, States, and Local Bodies
Explanation:<\/strong> After 73rd and 74th Amendments, Finance Commission also covers Panchayats and Municipalities.<\/p>\n\n\n\n

45. The President constitutes the Finance Commission under:
<\/mark><\/strong>a) Article 275
b) Article 280(1)
c) Article 282
d) Article 289
Answer:<\/strong> b) Article 280(1)
Explanation:<\/strong> Article 280(1) mandates the President to constitute Finance Commission.<\/p>\n\n\n\n

46. Which Finance Commission was set up during the implementation of GST?
<\/mark><\/strong>a) 14th
b) 15th
c) 13th
d) 12th
Answer:<\/strong> b) 15th
Explanation:<\/strong> GST was implemented in 2017; the 15th Finance Commission was tasked with its impact.<\/p>\n\n\n\n

47. The Finance Commission recommendations are valid for a period of:
<\/mark><\/strong>a) 3 years
b) 4 years
c) 5 years
d) 6 years
Answer:<\/strong> c) 5 years
Explanation:<\/strong> Normally recommendations are made for a 5-year period.<\/p>\n\n\n\n

48. Which body recommends principles for allocation of grants to states out of the Consolidated Fund of India?
<\/mark><\/strong>a) Planning Commission
b) Finance Commission
c) NITI Aayog
d) Reserve Bank of India
Answer:<\/strong> b) Finance Commission
Explanation:<\/strong> Finance Commission recommends grants to states under Article 275.<\/p>\n\n\n\n

49. Which Finance Commission recommended debt relief measures for states?
<\/mark><\/strong>a) 11th
b) 12th
c) 13th
d) 14th
Answer:<\/strong> b) 12th
Explanation:<\/strong> The 12th Finance Commission recommended debt relief and fiscal consolidation.<\/p>\n\n\n\n

50. Who decides the number of members in the Finance Commission?
<\/mark><\/strong>a) Parliament
b) President
c) Prime Minister
d) Supreme Court
Answer:<\/strong> b) President
Explanation:<\/strong> The President decides the composition, but generally it is one Chairman + four Members.<\/p>\n\n\n\n

51. The recommendations of the Finance Commission are\u2014
<\/mark><\/strong>A) Binding on the government
B) Advisory in nature
C) Partly binding, partly advisory
D) Mandatory for Parliament
Answer: B<\/strong>
Explanation:<\/strong> Finance Commission recommendations are advisory in nature. The government may accept, modify, or reject them.<\/p>\n\n\n\n

52. Who decides the distribution of net proceeds of taxes between the Centre and the States?
<\/mark><\/strong>A) Union Cabinet
B) Parliament
C) Finance Commission
D) Planning Commission
Answer: C<\/strong>
Explanation:<\/strong> Finance Commission recommends the distribution of net proceeds of taxes between Union and States under Article 280.<\/p>\n\n\n\n

53. Which of the following is NOT a function of the Finance Commission?
<\/mark><\/strong>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<\/strong>
Explanation:<\/strong> Finance Commission does not directly allocate resources to Panchayats\/Municipalities; State Finance Commissions do.<\/p>\n\n\n\n

54. The Finance Commission is appointed by\u2014
<\/mark><\/strong>A) Prime Minister
B) President
C) Finance Minister
D) Lok Sabha Speaker
Answer: B<\/strong>
Explanation:<\/strong> Under Article 280, the President of India appoints the Finance Commission every five years.<\/p>\n\n\n\n

55. Which Article provides for grants-in-aid to States from the Consolidated Fund of India?
<\/mark><\/strong>A) Article 270
B) Article 275
C) Article 280
D) Article 282
Answer: B<\/strong>
Explanation:<\/strong> Article 275 provides for statutory grants-in-aid to certain States.<\/p>\n\n\n\n

56. Which of the following taxes is excluded from the purview of the Finance Commission?
<\/mark><\/strong>A) Income Tax
B) Corporate Tax
C) Goods and Services Tax (GST)
D) Agricultural Income Tax
Answer: D<\/strong>
Explanation:<\/strong> Agricultural income tax belongs exclusively to the States, hence not shared via Finance Commission.<\/p>\n\n\n\n

57. Finance Commission reports are laid before\u2014
<\/mark><\/strong>A) Parliament
B) Supreme Court
C) Finance Ministry only
D) State Legislatures
Answer: A<\/strong>
Explanation:<\/strong> The recommendations of the Finance Commission are submitted to the President and laid before Parliament.<\/p>\n\n\n\n

58. Which Finance Commission first recommended revenue deficit grants?
<\/mark><\/strong>A) 7th Finance Commission
B) 9th Finance Commission
C) 10th Finance Commission
D) 11th Finance Commission
Answer: C<\/strong>
Explanation:<\/strong> The 10th Finance Commission introduced revenue deficit grants to cover States\u2019 deficits.<\/p>\n\n\n\n

59. Which Finance Commission recommended the introduction of the Goods and Services Tax (GST)?
<\/mark><\/strong>A) 12th Finance Commission
B) 13th Finance Commission
C) 14th Finance Commission
D) 15th Finance Commission
Answer: B<\/strong>
Explanation:<\/strong> The 13th Finance Commission (2007) recommended the introduction of GST.<\/p>\n\n\n\n

60. Which Finance Commission introduced the concept of \u2018Performance Grants\u2019?
<\/mark><\/strong>A) 10th Finance Commission
B) 11th Finance Commission
C) 12th Finance Commission
D) 13th Finance Commission
Answer: D<\/strong>
Explanation:<\/strong> 13th Finance Commission introduced performance-based grants for better fiscal discipline.<\/p>\n\n\n\n

61. The vertical distribution recommended by the Finance Commission refers to\u2014
<\/mark><\/strong>A) Distribution among different States
B) Distribution between Union and States
C) Distribution within one State
D) Distribution among local bodies
Answer: B<\/strong>
Explanation:<\/strong> Vertical distribution means division of resources between Union and States.<\/p>\n\n\n\n

62. The horizontal distribution recommended by the Finance Commission refers to\u2014
<\/mark><\/strong>A) Distribution among different States
B) Distribution between Union and States
C) Distribution among districts
D) Distribution to Panchayats
Answer: A<\/strong>
Explanation:<\/strong> Horizontal distribution is allocation among different States.<\/p>\n\n\n\n

63. Which of the following is true regarding Finance Commission recommendations?
<\/mark><\/strong>A) They are final and unquestionable
B) They are implemented without Parliament\u2019s approval
C) They require approval of the President and Parliament
D) They are judicially enforceable
Answer: C<\/strong>
Explanation:<\/strong> Recommendations need acceptance by the government and approval in Parliament.<\/p>\n\n\n\n

64. The Finance Commission shares tax revenues under which fund?
<\/mark><\/strong>A) Public Account of India
B) Contingency Fund of India
C) Consolidated Fund of India
D) Planning Fund of India
Answer: C<\/strong>
Explanation:<\/strong> Tax revenue is shared from the Consolidated Fund of India.<\/p>\n\n\n\n

65. Grants given by Finance Commission for meeting expenditure of States on special needs are called\u2014
<\/mark><\/strong>A) Performance grants
B) Specific purpose grants
C) Statutory grants
D) Revenue deficit grants
Answer: C<\/strong>
Explanation:<\/strong> Statutory grants under Article 275 are given for special needs.<\/p>\n\n\n\n

66. Which Finance Commission recommended higher share of States in central taxes from 32% to 42%?
<\/mark><\/strong>A) 12th Finance Commission
B) 13th Finance Commission
C) 14th Finance Commission
D) 15th Finance Commission
Answer: C<\/strong>
Explanation:<\/strong> 14th Finance Commission increased States\u2019 share from 32% to 42%.<\/p>\n\n\n\n

67. Which of the following is NOT true about the Finance Commission?
<\/mark><\/strong>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<\/strong>
Explanation:<\/strong> Monetary policy is decided by RBI, not the Finance Commission.<\/p>\n\n\n\n

68. The Finance Commission is responsible for recommending principles governing\u2014
<\/mark><\/strong>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<\/strong>
Explanation:<\/strong> Article 280 empowers Finance Commission to recommend distribution of tax proceeds.<\/p>\n\n\n\n

69. The Finance Commission does not deal with\u2014
<\/mark><\/strong>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<\/strong>
Explanation:<\/strong> Panchayat finances are handled by State Finance Commissions.<\/p>\n\n\n\n

70. Which body recommends financial devolution to local bodies?
<\/mark><\/strong>A) Union Finance Commission
B) State Finance Commission
C) Planning Commission
D) NITI Aayog
Answer: B<\/strong>
Explanation:<\/strong> State Finance Commissions recommend financial distribution to Panchayats and Municipalities.<\/p>\n\n\n\n

71. The first Finance Commission was constituted under the chairmanship of\u2014
<\/mark><\/strong>A) K. Santhanam
B) K.C. Neogy
C) Y.V. Reddy
D) C. Rangarajan
Answer: B<\/strong>
Explanation:<\/strong> The first Finance Commission (1951) was chaired by K.C. Neogy.<\/p>\n\n\n\n

72. Which Article empowers the Finance Commission to suggest measures for augmenting State resources?
<\/mark><\/strong>A) Article 270
B) Article 275
C) Article 280
D) Article 282
Answer: C<\/strong>
Explanation:<\/strong> Article 280 empowers Finance Commission to suggest measures to augment State Consolidated Funds.<\/p>\n\n\n\n

73. Recommendations of the Finance Commission are implemented through\u2014
<\/mark><\/strong>A) Executive orders only
B) Presidential orders and Parliamentary approval
C) Supreme Court directions
D) State legislatures directly
Answer: B<\/strong>
Explanation:<\/strong> Recommendations are implemented through Presidential orders and Parliamentary approval.<\/p>\n\n\n\n

74. Which Finance Commission\u2019s recommendations are currently in force (2021\u20132026)?
<\/mark><\/strong>A) 14th Finance Commission
B) 15th Finance Commission
C) 16th Finance Commission
D) 13th Finance Commission
Answer: B<\/strong>
Explanation:<\/strong> The 15th Finance Commission (2021\u20132026) chaired by N.K. Singh is in force.<\/p>\n\n\n\n

75. The recommendations of the Finance Commission are considered by\u2014
<\/mark><\/strong>A) President only
B) Parliament only
C) President and Parliament
D) Union Cabinet alone
Answer: C<\/strong>
Explanation:<\/strong> Recommendations are submitted to the President, then placed before Parliament for consideration.<\/p>\n\n\n\n

76. Which of the following bodies is described as a quasi-judicial body in the Constitution?
<\/mark><\/strong>A) Election Commission
B) Finance Commission
C) UPSC
D) CAG
Answer: B) Finance Commission<\/strong>
Explanation:<\/strong> The Finance Commission is often described as a quasi-judicial body as it adjudicates financial relations between Union and States.<\/p>\n\n\n\n

77. Finance Commission is mainly related to\u2014
<\/mark><\/strong>A) Administrative Reforms
B) Financial Relations
C) Political Reforms
D) Electoral Reforms
Answer: B) Financial Relations<\/strong>
Explanation:<\/strong> The Finance Commission deals with the division of finances between Union and States under Article 280.<\/p>\n\n\n\n

78. Finance Commission\u2019s recommendations are\u2014
<\/mark><\/strong>A) Binding on the Government
B) Advisory in nature
C) Decided by Parliament
D) Decided by Supreme Court
Answer: B) Advisory in nature<\/strong>
Explanation:<\/strong> The recommendations of the Finance Commission are advisory, but generally accepted by the Union Government.<\/p>\n\n\n\n

79. The Finance Commission reviews\u2014
<\/mark><\/strong>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<\/strong>
Explanation:<\/strong> Its primary role is revenue distribution, ensuring fiscal balance between Union and States.<\/p>\n\n\n\n

80. Which Article provides that Finance Commission recommendations shall be laid before Parliament?
<\/mark><\/strong>A) Article 280(3)
B) Article 281
C) Article 282
D) Article 283
Answer: B) Article 281<\/strong>
Explanation:<\/strong> Article 281 mandates that the President shall lay Finance Commission recommendations before both Houses of Parliament.<\/p>\n\n\n\n

81. The Finance Commission is a\u2014
<\/mark><\/strong>A) Permanent Body
B) Quasi-permanent Body
C) Temporary Body
D) Judicial Body
Answer: C) Temporary Body<\/strong>
Explanation:<\/strong> It is constituted every 5 years, so it is not permanent.<\/p>\n\n\n\n

82. Which Finance Commission recommended the creation of a Consolidated Fund for States?
<\/mark><\/strong>A) 1st
B) 2nd
C) 3rd
D) 4th
Answer: A) 1st<\/strong>
Explanation:<\/strong> The 1st Finance Commission (1951) recommended the creation of a Consolidated Fund for States.<\/p>\n\n\n\n

83. Finance Commission recommendations are implemented through\u2014
<\/mark><\/strong>A) Finance Bill
B) Appropriation Bill
C) Presidential Order
D) Constitutional Amendment
Answer: C) Presidential Order<\/strong>
Explanation:<\/strong> After acceptance, recommendations are implemented by a Presidential order.<\/p>\n\n\n\n

84. Finance Commission deals with which fund?
<\/mark><\/strong>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<\/strong>
Explanation:<\/strong> It makes recommendations regarding the distribution of taxes from the Consolidated Fund of India.<\/p>\n\n\n\n

85. Which Finance Commission introduced \u201cDebt Relief\u201d for States?
<\/mark><\/strong>A) 7th
B) 9th
C) 12th
D) 14th
Answer: C) 12th<\/strong>
Explanation:<\/strong> The 12th Finance Commission (2005) introduced measures for debt relief to States.<\/p>\n\n\n\n

86. Which Finance Commission recommended GST compensation to States?
<\/mark><\/strong>A) 13th
B) 14th
C) 15th
D) 16th
Answer: C) 15th<\/strong>
Explanation:<\/strong> The 15th Finance Commission provided recommendations for GST compensation to States.<\/p>\n\n\n\n

87. Which Finance Commission recommended 42% devolution of central taxes to States?
<\/mark><\/strong>A) 12th
B) 13th
C) 14th
D) 15th
Answer: C) 14th<\/strong>
Explanation:<\/strong> The 14th Finance Commission raised States\u2019 share in central taxes from 32% to 42%.<\/p>\n\n\n\n

88. The Finance Commission is constituted to maintain\u2014
<\/mark><\/strong>A) Administrative balance
B) Fiscal federalism
C) Political unity
D) Judicial independence
Answer: B) Fiscal federalism<\/strong>
Explanation:<\/strong> The Commission ensures proper fiscal federalism between Union and States.<\/p>\n\n\n\n

89. Who examines Finance Commission recommendations before acceptance?
<\/mark><\/strong>A) Supreme Court
B) Finance Ministry
C) Parliament
D) CAG
Answer: B) Finance Ministry<\/strong>
Explanation:<\/strong> The Ministry of Finance examines the recommendations before final implementation.<\/p>\n\n\n\n

90. The Finance Commission has jurisdiction over\u2014
<\/mark><\/strong>A) Union only
B) States only
C) Union and States
D) Municipalities
Answer: C) Union and States<\/strong>
Explanation:<\/strong> It works on the financial distribution between Union and States.<\/p>\n\n\n\n

91. Which Commission recommended \u201cEqualisation Grants\u201d?
<\/mark><\/strong>A) 2nd
B) 4th
C) 10th
D) 12th
Answer: A) 2nd<\/strong>
Explanation:<\/strong> The 2nd Finance Commission introduced the concept of equalisation grants to reduce regional disparities.<\/p>\n\n\n\n

92. Which Finance Commission recommended grants for Panchayats and Municipalities?
<\/mark><\/strong>A) 10th
B) 11th
C) 12th
D) 13th
Answer: B) 11th<\/strong>
Explanation:<\/strong> The 11th Finance Commission (1998) first recommended grants for Panchayats and Municipalities.<\/p>\n\n\n\n

93. Who prescribes the conditions of service of Finance Commission members?
<\/mark><\/strong>A) President
B) Parliament
C) Cabinet
D) Finance Minister
Answer: B) Parliament<\/strong>
Explanation:<\/strong> Parliament decides by law the conditions of service of members.<\/p>\n\n\n\n

94. Which Finance Commission recommended fiscal consolidation and FRBM targets?
<\/mark><\/strong>A) 11th
B) 12th
C) 13th
D) 15th
Answer: C) 13th<\/strong>
Explanation:<\/strong> The 13th Finance Commission recommended fiscal consolidation with FRBM targets.<\/p>\n\n\n\n

95. Who submits Finance Commission\u2019s report?
<\/mark><\/strong>A) Prime Minister
B) Finance Minister
C) President
D) Speaker
Answer: C) President<\/strong>
Explanation:<\/strong> The Finance Commission submits its report to the President.<\/p>\n\n\n\n

96. Grants-in-aid to States are recommended under\u2014<\/strong>
<\/mark>A) Article 270
B) Article 275
C) Article 280
D) Article 282
Answer: B) Article 275<\/strong>
Explanation:<\/strong> Article 275 provides for grants-in-aid to States based on Finance Commission recommendations.<\/p>\n\n\n\n

97. The principle of \u201cequity and efficiency\u201d in revenue distribution was emphasised by\u2014
<\/mark><\/strong>A) 9th Finance Commission
B) 10th Finance Commission
C) 12th Finance Commission
D) 14th Finance Commission
Answer: D) 14th Finance Commission<\/strong>
Explanation:<\/strong> The 14th Finance Commission stressed on equity and efficiency in fiscal transfers.<\/p>\n\n\n\n

98. Finance Commission recommendations are placed before Parliament by\u2014
<\/mark><\/strong>A) Finance Minister
B) Speaker
C) President
D) Prime Minister
Answer: C) President<\/strong>
Explanation:<\/strong> As per Article 281, the President lays the recommendations before Parliament.<\/p>\n\n\n\n

99. Which Commission made provision for performance-based grants to States?
<\/mark><\/strong>A) 12th
B) 13th
C) 14th
D) 15th
Answer: B) 13th<\/strong>
Explanation:<\/strong> The 13th Finance Commission introduced performance-based grants to improve governance.<\/p>\n\n\n\n

100. Finance Commission is an instrument of\u2014
<\/mark><\/strong>A) Political federalism
B) Cooperative federalism
C) Administrative federalism
D) Competitive federalism
Answer: B) Cooperative federalism<\/strong>
Explanation:<\/strong> The Finance Commission strengthens cooperative federalism by balancing Union\u2013State finances.<\/p>\n","protected":false},"excerpt":{"rendered":"

1. Which Article of the Constitution provides for Finance Commission?a) Article 275b) Article 280c) Article 282d) Article 300Answer: b) Article 280Explanation: 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 Ministerb) Presidentc) Parliamentd) Comptroller and Auditor GeneralAnswer: b) PresidentExplanation:<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[17546,17542,17530,17556,17536,17533,17531,17548,10661,10675,10644,17534,17541,17529,10660,10674,10589,17554,10631,10612,10576,10654,17543,17547,17550,17555,17557,10640,17535,10671,10588,17551,17194,17189,17552,17202,17219,4029,5649,5652,5623,17532,10642,17549,17537,17539,17553,17538,17545,17558,17540,10602,10609,10617,10579,10643,10657,10616,10667,10585,10630,10614,10582,10578,10668,10599,10646,10606,10621,10587,10649,10637,8946,10647,10638,10584,10598,10618,10673,10581,10590,10651,10610,10601,10613,10629,10583,10608,10639,10619,17544,17265,10607,10592,10648,10577,10632,10655,10652,10623,10670,10663,10605,10626,10659,10635,10662,10597,10615,10624,10669,10604,10665,10656,10645,10620,10658,10580,10634,10622,10650,10653,10633,10611,10641,10596,10636,10627,10595,10600,10593,10625,10628,10591,10594,10603,10664,10586,10666,10672],"class_list":{"0":"post-12347","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-ic","7":"tag-advisory-role-of-finance-commission","8":"tag-allocation-of-resources","9":"tag-articles-280-to-281","10":"tag-central-and-state-taxes","11":"tag-centre-state-financial-relations","12":"tag-chairman-and-members-of-finance-commission","13":"tag-constitutional-provisions-for-finance-commission","14":"tag-economic-planning-and-finance-commission","15":"tag-finance-commission-deals-with-which-fund","16":"tag-finance-commission-is-an-instrument-of","17":"tag-finance-commission-is-mainly-related-to","18":"tag-finance-commission-mcqs","19":"tag-finance-commission-mcqs-with-explanation","20":"tag-finance-commission-of-india","21":"tag-finance-commission-recommendations-are-implemented-through","22":"tag-finance-commission-recommendations-are-placed-before-parliament-by","23":"tag-finance-commission-recommendations-are-related-to-which-fund","24":"tag-finance-commission-reports","25":"tag-finance-commission-reports-are-laid-before","26":"tag-finance-commission-submits-its-recommendations-to","27":"tag-finance-commission-top-100-mcqs-with-answer-and-explanation","28":"tag-finance-commissions-recommendations-are","29":"tag-financial-management-in-india","30":"tag-financial-relations-between-centre-and-states","31":"tag-fiscal-policy-and-governance","32":"tag-fiscal-responsibility-and-accountability","33":"tag-grants-and-loans-to-states","34":"tag-grants-given-by-finance-commission-for-meeting-expenditure-of-states-on-special-needs-are-called","35":"tag-grants-in-aid-to-states","36":"tag-grants-in-aid-to-states-are-recommended-under","37":"tag-grants-in-aid-to-states-out-of-the-consolidated-fund-of-india-are-recommended-by","38":"tag-important-articles-on-finance-commission","39":"tag-indian-constitution","40":"tag-indian-constitution-practice-questions","41":"tag-indian-economy-and-constitution","42":"tag-indian-polity-mcqs","43":"tag-indian-polity-questions-with-answers","44":"tag-mcqs-adda","45":"tag-mcqs-for-pc-psi-sda-fda-pdo-vao-banking-kas-ias-ssc-gd-ssc-chsl-ssc-cgl-for-all-compitative-exams","46":"tag-mcqs-for-pc-psi-sda-fda-pdo-vao-banking-kas-ias-ssc-gd-ssc-chsl-ssc-cgl-for-all-compitative-examsin-kannada","47":"tag-mcqs-for-sda-fda-pdo-vao-banking-kas-ias-ssc-gd-ssc-chsl-ssc-cgl-for-all-compitative-exams","48":"tag-powers-and-functions-of-finance-commission","49":"tag-recommendations-of-the-finance-commission-are-implemented-through","50":"tag-recommendations-on-state-debts","51":"tag-recommendations-on-tax-sharing","52":"tag-revenue-distribution","53":"tag-role-in-cooperative-federalism","54":"tag-role-of-finance-commission-in-fiscal-federalism","55":"tag-state-finance-and-budgets","56":"tag-structure-of-finance-commission","57":"tag-tenure-of-finance-commission","58":"tag-the-14th-finance-commission-was-chaired-by","59":"tag-the-15th-finance-commission-was-chaired-by","60":"tag-the-finance-commission-can-recommend-distribution-of-financial-resources-between","61":"tag-the-finance-commission-consists-of-a-chairman-and-how-many-members","62":"tag-the-finance-commission-does-not-deal-with","63":"tag-the-finance-commission-has-jurisdiction-over","64":"tag-the-finance-commission-is-a-balance-wheel-of","65":"tag-the-finance-commission-is-a-2","66":"tag-the-finance-commission-is-a","67":"tag-the-finance-commission-is-appointed-by","68":"tag-the-finance-commission-is-considered-an-instrument-to-maintain","69":"tag-the-finance-commission-is-constituted-at-an-interval-of","70":"tag-the-finance-commission-is-constituted-by-the","71":"tag-the-finance-commission-is-constituted-to-maintain","72":"tag-the-finance-commission-is-constituted-under-which-part-of-the-constitution","73":"tag-the-finance-commission-is-responsible-for-recommending-principles-governing","74":"tag-the-finance-commission-mainly-recommends-sharing-of-revenues-from-which-taxes","75":"t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