Finance Commission mCQ

What is the primary function of the Finance Commission in India?

a) Allocating funds for defense expenditure

b) Determining the distribution of central taxes among states

c) Regulating the stock market

d) Auditing government accounts

Which article of the Indian Constitution deals with the appointment and functions of the Finance Commission?

a) Article 280

b) Article 315

c) Article 370

d) Article 412

How often is the Finance Commission constituted in India?

a) Once every five years

b) Once every three years

c) Once every two years

d) Once every ten years

Who appoints the members of the Finance Commission?

a) President of India

b) Prime Minister

c) Chief Justice of India

d) Parliament

What is the tenure of the Finance Commission?

a) 1 year

b) 2 years

c) 3 years

d) 5 years

Which Finance Commission was constituted most recently in India (as of 2022)?

a) 13th Finance Commission

b) 14th Finance Commission

c) 15th Finance Commission

d) 16th Finance Commission

What is the main criterion used by the Finance Commission to determine the distribution of central taxes among states?

a) Population

b) Land area

c) Gross Domestic Product (GDP)

d) Literacy rate

Which of the following is NOT a function of the Finance Commission?

a) Recommending grants-in-aid to states

b) Evaluating the fiscal policy of the government

c) Determining the salary of government employees

d) Reviewing the financial performance of states

How many members are typically appointed to the Finance Commission?

a) 5

b) 7

c) 10

d) 15

Which Finance Commission introduced the concept of grants-in-aid to states for disaster management?

a) 12th Finance Commission

b) 13th Finance Commission

c) 14th Finance Commission

d) 15th Finance Commission

What is the role of the Finance Commission in recommending measures for revenue augmentation?

a) Implementing tax reforms

b) Proposing new tax rates

c) Advising on fiscal deficit targets

d) Suggesting methods for resource mobilization

Which Finance Commission recommended the introduction of Goods and Services Tax (GST) in India?

a) 11th Finance Commission

b) 12th Finance Commission

c) 13th Finance Commission

d) 14th Finance Commission

What is the primary objective of the Finance Commission's recommendations regarding grants-in-aid to states?

a) Reducing fiscal deficit

b) Promoting balanced regional development

c) Enhancing defense capabilities

d) Funding infrastructure projects

Which Finance Commission emphasized the need for strengthening local government finances and implementing fiscal responsibility legislation?

a) 10th Finance Commission

b) 11th Finance Commission

c) 12th Finance Commission

d) 13th Finance Commission

Which article of the Indian Constitution empowers the President to appoint a Finance Commission?

a) Article 280

b) Article 315

c) Article 370

d) Article 412

What is the primary criterion used by the Finance Commission to assess the financial position of states?

a) Population density

b) Per capita income

c) Industrial output

d) Agricultural productivity

Which Finance Commission recommended the abolition of the Planning Commission and the establishment of NITI Aayog?

a) 11th Finance Commission

b) 12th Finance Commission

c) 13th Finance Commission

d) 14th Finance Commission

What is the primary purpose of devolution of funds from the center to the states as per the Finance Commission's recommendations?

a) Financing national defense

b) Financing centrally sponsored schemes

c) Promoting local entrepreneurship

d) Supporting social welfare programs

Which Finance Commission recommended the introduction of performance-based incentives for states?

a) 11th Finance Commission

b) 12th Finance Commission

c) 13th Finance Commission

d) 14th Finance Commission

Which of the following is NOT a parameter considered by the Finance Commission while evaluating states' fiscal performance?

a) Debt sustainability

b) Fiscal deficit

c) Industrial growth rate

d) Tax revenue effort