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UPSC 2011: With reference to the Finance Commission of India, which of the following statements is correct?
(a)It encourages the inflow of foreign capital for infrastructure development
(b)It facilitates the proper distribution of finances among the Public Sector Undertakings
(c)It ensures transparency in financial administration
(d)None of the statements (a), (b) and (c) given above is correct in this context
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Not attemptedCorrect Answer: (d) None of the statements (a), (b) and (c) given above is correct in this context
The Finance Commission (Art. 280) recommends the vertical and horizontal sharing of the Union’s tax revenues between the Centre and States; its mandate does not include encouraging foreign capital flows, distributing funds among PSUs or policing transparency in financial administration. Consequently, none of the three statements is correct. ([testbook.com](https://testbook.com/question-answer/ques--60202a0dc37b0527abb4aca3?utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 2011 Indian Polity question?▼
The correct answer is option (d): None of the statements (a), (b) and (c) given above is correct in this context. 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 2011, GS Paper 1, as Question 45. 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.