The Finance Commission is a constitutional body established under Article 280 of the Constitution. Its main function is to define the financial relations between the central government of India and the state governments. While it advises the President on financial matters, its core mandated duty is revenue distribution. It also makes recommendations on grants-in-aid to states.
The primary duty of the Finance Commission of India is
Asked in UPPCS Prelims 2021 · Topic: The Finance Commission (Core functions: Vertical and horizontal devolution of taxes)
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Answer: A. To give the recommendations on distribution of tax revenue between the Union and States
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