Q. Consider the following statements regarding the Finance Commission of India:
1.The Finance Commission is constituted by the President of India every five years or at such earlier time as the President considers necessary.
2.The Chairman and four other members of the Finance Commission are appointed by the Parliament of India.
3.The recommendations of the Finance Commission are binding on the government.
4.The Finance Commission recommends measures to augment the Consolidated Fund of a state to supplement the resources of panchayats and municipalities.
Which of the statements given above are correct?
Answer: A
Notes:
Explanation:
Statement 1 is correct: The Finance Commission is constituted by the President of India every five years or at such earlier time as the President considers necessary.
Statement 2 is incorrect: The Chairman and four other members are appointed by the President, not by Parliament.
Statement 3 is incorrect: The recommendations of the Finance Commission are advisory in nature and not binding on the government.
Statement 4 is correct: The Finance Commission recommends measures to augment the Consolidated Fund of a state to supplement the resources of panchayats and municipalities.
