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UPSC 2000: The primary function of the Finance Commission in India is to
(a)distribute revenue between the Centre and the States
(b)prepare the Annual Budget
(c)advise the President on financial matters
(d)allocate funds to various ministries of the Union and State Governments
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Not attemptedCorrect Answer: (a) distribute revenue between the Centre and the States
Article 280 directs the Finance Commission to recommend ‘the distribution between the Union and the States of the net proceeds of taxes’ and the principles of grants-in-aid; it is therefore chiefly concerned with sharing revenue, not with preparing the Union Budget, presidential advice or ministry-wise allocations. Option (a) is thus correct. ([en.wikipedia.org](https://en.wikipedia.org/wiki/Finance_Commission?utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 2000 Indian Polity question?▼
The correct answer is option (a): distribute revenue between the Centre and the States. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Public Finance & Finance Commission question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2000, GS Paper 1, as Question 10. It falls under Indian Polity > Public Finance & Finance Commission.
What is the difficulty level of this UPSC question?▼
This question is rated "easy". It tests basic recall and most well-prepared aspirants should answer it correctly.
How many UPSC Prelims questions have been asked from Public Finance & Finance Commission?▼
UPSC has asked 13 questions from Public Finance & Finance Commission (under Indian Polity) across multiple years. Visit the topic page to see the full list and year-wise trends.