Statement I : The Finance Commission makes principles which govern the grants-in- aid of revenues given to the States out of the Consolidated Fund of India. Statement II Members of the Finance Commission are drawn from all the States and Union Territories

examrobotsa's picture

Submitted by examrobotsa on

Q: 74 (CAPF/2010)

Statement I : The Finance Commission makes principles which govern the grants-in- aid of revenues given to the States out of the Consolidated Fund of India. Statement II Members of the Finance Commission are drawn from all the States and Union Territories.

question_subject: 

Economics

question_exam: 

CAPF

stats: 

0,33,35,17,15,33,3

keywords: 

{'statement ii members': [0, 0, 1, 0], 'finance commission': [8, 1, 3, 1], 'consolidated fund': [1, 0, 0, 3], 'grants': [2, 0, 1, 0], 'union territories': [1, 0, 1, 1], 'principles': [0, 0, 1, 0], 'revenues': [2, 0, 5, 3]}

Statement I is true as the Finance Commission does indeed make principles that govern the grants-in-aid of revenues given to the states. This means that the Finance Commission decides on the criteria and rules for providing financial assistance to the states from the Consolidated Fund of India.

Statement II is false. The members of the Finance Commission are not drawn from all the states and Union Territories. In fact, the Finance Commission consists of a Chairman and four other members who are appointed by the President of India. These members are usually experts in the field of economics, public finance, or related areas. They are not representatives from the states and Union Territories.

Therefore, the correct answer is option 3. While Statement I is true, Statement II is false and does not provide an explanation for Statement I.