Polity (The Finance Commission) MCQ

The ExamPillar provided a collection of important questions for various upcoming exams like SSC (Steno, JE, CGL, CHSL, CPO, MTS etc), RRB (Group D, JE, NTPC etc), State Exam (UKSSSC, UKPCS, UPSSSC, UPPCS, BPSC, BSSC, etc) etc. The team of The ExamPillar provided to Indian Polity (The Finance Commission) MCQ, which questions have been asked in various exams. In this Set we provide the questions 01 – 32.

Subject — Indian Polity
Topic — The Finance Commission
Total Question in This Set — 32

Polity (The Finance Commission) MCQ 

1. Which one of the following institutions will lay down the basic principles for the distribution of the net proceeds of the taxes between the Union and States?
(A) Planning Commission
(B) National Development Council
(C) Finance Commission
(D) Union Ministry of Finance

2. Which one of the following authorities recommends the principles governing the grants-inaid of the revenues to the States out of the Consolidated Fund of India?
(A) Finance Commission
(B) Inter-State Council
(C) Union Ministry of Finance
(D) Public Accounts Committee

3. Finance are distributed between the Centre and the State on the recommendations of which of the following?
(A) Planning Commission
(B) Public Accounts Committee
(C) Finance Commission
(D) National Development Council

4. Generally, in India Finance Commission is appointed for every five years
(A) To determine the financial position of the States
(B) To determine the financial position of Central Government
(C) To determine the financial resources of Central Government
(D) To determine the share of the States in the grants and revenues of the Central Government

5. The Finance Commission is primarily concerned with recommending to the President about
(A) The principle governing grantsin- aid to be given to the States
(B) Distributing the net proceeds of the taxes between the Centre and the States
(C) Neither (A) nor (B)
(D) Both (A) and (B)

5. The main functions of Finance Commission is
(A) To determine the part of States in central taxes and to determine the principles of financial aid given by the Centre to States
(B) Financial control over States
(C) Financial control over Central
(D) None of the above

6. Which one of the following is not a function of Finance Commission in India?
(A) Devolution of Income Tax
(B) Devolution of Excise Duty
(C) Award of grants-in-aid
(D) Devolution of Trade Tax

7. 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 transperancy in financial administration
(D) None of the statements (A), (B) and (C) given above is correct in this context

8. Main agency to resolve the fiscal disputes between the Centre and States is
(A) Supreme Court
(B) Law Minister
(C) Finance Minister
(D) Finance Commission

8. Federal Finance Commission in India relates to
(A) Finances among the States
(B) Finances between States and the Centre
(C) Finances between the Centre and Local Self Governments
(D) None of the above

9. Who was the Chairman of the Twelfth Finance Commission?
(A) A.M. Khusro
(B) K.C. Pant
(C) Montek Singh
(D) C. Rangarajan

10. The Provisions regarding division of taxes between the Union and the States
(A) Can be suspended during Financial Emergency
(B) Can be suspended during National Emergency
(C) Cannot be suspended under any circumstances
(D) Can be suspended only with the consent of a majority of the State Legislatures

11. Who among the following was the Chairman of 14th Finance Commission?
(A) Shanta Kumar
(B) C. Rangarajan
(C) Y.V. Reddy
(D) None of the above

12. Who was the Chairman of the 13th Finance Commission?
(A) Indira Rajaraman
(B) C. Rangarajan
(C) Vijay Kelkar
(D) None of the above

13. The Finance Commission is constituted for a period of
(A) 4 years
(B) 5 years
(C) 7 years
(D) 10 years

14. Who of the following shall causes every recommendation made by the Finance Commission to be laid before each House of the Parliament?
(A) The President of India
(B) The Speaker of Lok Sabha
(C) The Prime Minister of India
(D) The Union Finance Minister

15. After the commencement of the Constitution how many Finance Commissions have been constituted?
(A) 10
(B) 8
(C) 9
(D) 15

16. Which one of the following statements about a State Finance Commission is true?
(A) It is an informal body
(B) It is a Constitutional body
(C) It is an Administrative body
(D) None of the above