Financial distribution between the Union and the State takes place on the basis of the recommendat ions of which one of the following ?

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Q: 12 (CDS-II/2007)
Financial distribution between the Union and the State takes place on the basis of the recommendat ions of which one of the following ?

question_subject: 

Polity

question_exam: 

CDS-II

stats: 

0,97,13,3,6,4,97

keywords: 

{'finance commission': [8, 1, 3, 1], 'national development council': [2, 0, 4, 5], 'financial distribution': [1, 0, 1, 0], 'union': [17, 3, 24, 36], 'planning commission': [5, 0, 9, 5], 'recommendat ions': [0, 0, 2, 0]}

The correct answer is option 4, The Finance Commission. The Finance Commission is a constitutional body that is responsible for recommending the distribution of financial resources between the Union government and the State governments. The Commission is appointed by the President of India every five years and consists of a chairman and other members.

The Finance Commission analyzes the financial situation of both the Union and the State governments and makes recommendations on various aspects such as the distribution of taxes, grants-in-aid, and borrowing powers of the States. These recommendations are crucial in determining the share of financial resources that each level of government receives.

Option 1, The National Development Council, is incorrect as it is a forum for cooperative federalism and policy planning, but it does not have the authority to recommend financial distribution.

Option 2, The Inter-State Council, is incorrect as it is tasked with addressing inter-state disputes and coordinating policy matters, but it does not play a role in financial distribution.

Option 3, The Planning Commission, is incorrect as it was replaced by the NITI Aayog in 2015. The Planning Commission was responsible for formulating and assessing India`s five-year plans but did not have the authority to recommend financial distribution.

Therefore, the correct answer for the recommendat ions of financial distribution