Q. Consider the following statements regarding Finance commission.
1. It consists of chairman and two other members to be appointed by the President.
2. It is called as the balancing wheel of Fiscal federalism in India.
3. Its recommendations are binding on the government of India.
How many statements given above are correct?
Answer: A
Notes:
Exp) Option a is the correct answer.
Statement 1 is incorrect. Finance Commission consists of chairman and four other members to be appointed by the President.
Statement 2 is correct. It is called as the balancing wheel of Fiscal federalism in India
Statement 3 is incorrect. Its recommendations are not binding but it should not be turned down by the government unless there are very compelling reasons.
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