Q. Consider the following statements about the differences between Central Finance Commission (CFC) and State Finance Commission (SFC) in India:
1. Central Financial Commission is a constitutional body, whereas SFC is a statutory body.
2. The recommendations of the CFC are binding on the Government of India, while the recommendations of the SFC are advisory in nature.
Which of the statements given above is/are correct?
Answer: D
Notes:
Exp) Option d is the correct answer.
Statement 1 is incorrect: The Central Finance Commission (CFC) is a constitutional body under Article 280 of the Constitution. State Finance Commission (SFC) is also a constitutional body that is established in every State of India under Article 243-I of the Constitution.
Statement 2 is incorrect: The recommendation of both the Commissions are advisory in nature. The President and governor places the recommendations of the commission along with the action taken report before the Parliament and state legislature respectively
