The Finance Commission is responsible for adjudicating on the sharing of resources between the Centre (central government) and the States in India. This means that the Commission recommends the distribution of tax revenues, grants-in-aid, and other financial resources between the central government and the state governments. The Commission plays a crucial role in ensuring a fair and equitable distribution of resources to promote balanced development across the country.

Option 1 is incorrect because the Finance Commission does not draw up Five Year Plans. Five Year Plans are formulated by the Planning Commission, which has now been replaced by the NITI Aayog.

Option 2 is incorrect because the formulation of monetary policy is the responsibility of the Reserve Bank of India (RBI).

Option 3 is incorrect because the Finance Commission does not recommend pay revisions of Central Government employees. This responsibility falls under the purview of the Pay Commission.

Alert - correct answer should be option 4.