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Q57 (NDA-II/2012) Polity & Governance › Local Government › State Finance Commission Answer Verified

Consider the following statements: The State government shall appoint a fincance commission to review the financial position of the Panchayats and to make recommendations as to 1. the distribution between the State and Panchayats of the net proceeds of taxes, tolls and fees leviable by the states. 2. the determinates of the taxes duteis, tolls and fees which may be assigned to the panchayats. 3. the principles that will determine grant-in- aid to the Panchayats. Which of the statement(s) given above is/are correct?

Result
Your answer: —  Â·  Correct: D
Explanation

Under Article 243-I of the Constitution, the Governor of a State appoints a State Finance Commission (SFC) every five years to review the financial position of Panchayats [3]. The SFC is mandated to make recommendations regarding: (1) the distribution between the State and the Panchayats of the net proceeds of taxes, duties, tolls, and fees leviable by the State [2]; (2) the determination of taxes, duties, tolls, and fees which may be assigned to or appropriated by the Panchayats [3]; and (3) the principles governing the grants-in-aid to the Panchayats from the Consolidated Fund of the State [3]. Additionally, the SFC recommends measures to improve the financial position of these local bodies . Since all three statements accurately reflect the constitutional duties of the State Finance Commission as outlined in the 73rd Amendment, the correct option is 4.

Sources

  1. [1] https://www.tnsfc.tn.gov.in/constitutional_provision
  2. [3] https://sfcassam.nic.in/4thSFC/chapter2.pdf
  3. [2] https://www.sfc.sikkim.gov.in/visitor/aboutfincomm
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SIMILAR QUESTIONS

IAS · 2025 · Q91 Relevance score: 3.97

Consider the following statements : I. Panchayats at the intermediate level exist in all States. II. To be eligible to be a Member of a Panchayat at the intermediate level, a person should attain the age of thirty years. III. The Chief Minister of a State constitutes a commission to review the financial position of Panchayats at the intermediate levels and to make recommendations regarding the distribution of net proceeds of taxes and duties, leviable by the State, between the State and Panchayats at the intermediate level. Which of the statements given above are not correct?

CDS-II · 2006 · Q79 Relevance score: 2.87

Consider the following statement s about 11 Finance Commission 1. It was constituted to go recommendations on specified aspects of Centre - State fiscal relations during 2005- 2010. 2. It has recommended that the share of states in the net proceeds of share alike Central taxes shall be 50%. Which of the statements given above is/ are correct ?

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Consider the following statements about State Election Commission: 1. The State Election Commissioner shall be appointed by the Governor of the State. 2. The State Election Commission shall have the power of even preparing the electoral rolls besides the power of superintendence, direction and control of election to the panchayats. 3. The State Election Commissioner cannot be removed in any manner from his office until he demits himself or completes his tenure. Which of the above statements is/are correct ?

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Consider the following statements : 1. No money bill can be introduced in the Parliament without the recommendation of the President of India. 2. The Prime Minister appoints Finance Commission for distribution of taxes between the Union and the States. Which of the statements given above is/are correct ?

IAS · 2003 · Q73 Relevance score: 1.37

Consider the following statements: The function (S) of the Finance Commission is/are 1. to allow the withdrawal of money out of the Consolidated Fund of India. 2. to allocate between the States the shares of proceeds of taxes. 3. to consider applications for grants-in-aid from States. 4. to supervise and report on whether the Union and State governments are levying taxes in accordance with the budgetary provisions. Which of these statements is/are correct?