UPPCS 2021 Pre

The primary duty of the Finance Commission of India is

Verified Answer
A. To give the recommendations on distribution of tax revenue between the Union and States
B. To prepare the Union Annual Budget
C. To advise the President on financial matters
D. To allocate funds to various Ministries/Departments of the Union and State Governments

Explanation:

Article 280 of the Indian Constitution mandates the establishment of a Finance Commission. Its primary duty is to make recommendations to the President regarding the distribution of net proceeds of taxes between the Union and the States, and the allocation of shares of such proceeds among the States.