{"id":385,"date":"2022-04-23T10:30:42","date_gmt":"2022-04-23T05:00:42","guid":{"rendered":"https:\/\/theexampillar.com\/mcq\/?p=385"},"modified":"2022-04-23T10:30:42","modified_gmt":"2022-04-23T05:00:42","slug":"polity-the-finance-commission-mcq","status":"publish","type":"post","link":"https:\/\/theexampillar.com\/mcq\/polity-the-finance-commission-mcq\/","title":{"rendered":"Polity (The Finance Commission) MCQ"},"content":{"rendered":"

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.<\/span><\/p>\n

Subject \u2014<\/strong> Indian Polity <\/span>
\nTopic \u2014 <\/strong>The Finance Commission
\nTotal Question in This Set \u2014 <\/strong>32<\/span><\/span><\/p>\n

Polity (The Finance Commission) MCQ\u00a0<\/span><\/strong><\/span><\/h2>\n

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?<\/span><\/strong><\/span>
\n(A) Planning Commission<\/span>
\n(B) National Development Council<\/span>
\n(C) Finance Commission<\/span>
\n(D) Union Ministry of Finance<\/span>
\n

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Answer – (C)<\/div><\/div><\/span><\/p>\n

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?<\/span><\/strong><\/span>
\n(A) Finance Commission<\/span>
\n(B) Inter-State Council<\/span>
\n(C) Union Ministry of Finance<\/span>
\n(D) Public Accounts Committee<\/span>
\n

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Answer – (A)<\/div><\/div><\/span><\/p>\n

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

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Answer – (C)<\/div><\/div><\/span><\/p>\n

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

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Answer – (D)<\/div><\/div><\/span><\/p>\n

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

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Answer – (D)<\/div><\/div><\/span><\/p>\n

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

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Answer – (A)<\/div><\/div><\/span><\/p>\n

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

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Answer – (D)<\/div><\/div><\/span><\/p>\n

7. With reference to the Finance Commission of India, which of the following statements is correct?<\/span><\/strong><\/span>
\n(A) It encourages the inflow of foreign capital for infrastructure development<\/span>
\n(B) It facilitates the proper distribution of finances among the Public Sector Undertakings<\/span>
\n(C) It ensures transperancy in financial administration<\/span>
\n(D) None of the statements (A), (B) and (C) given above is correct in this context<\/span>
\n

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Answer – (D)<\/div><\/div><\/span><\/p>\n

8. Main agency to resolve the fiscal disputes between the Centre and States is<\/span><\/strong><\/span>
\n(A) Supreme Court<\/span>
\n(B) Law Minister<\/span>
\n(C) Finance Minister<\/span>
\n(D) Finance Commission<\/span>
\n

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Answer – (D)<\/div><\/div><\/span><\/p>\n

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

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Answer – (B)<\/div><\/div><\/span><\/p>\n

9. Who was the Chairman of the Twelfth Finance Commission?<\/span><\/strong><\/span>
\n(A) A.M. Khusro<\/span>
\n(B) K.C. Pant<\/span>
\n(C) Montek Singh<\/span>
\n(D) C. Rangarajan<\/span>
\n

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Answer – (D)<\/div><\/div><\/span><\/p>\n

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

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Answer – (B)<\/div><\/div><\/span><\/p>\n

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

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Answer – (C)<\/div><\/div><\/span><\/p>\n

12. Who was the Chairman of the 13th Finance Commission?<\/span><\/strong><\/span>
\n(A) Indira Rajaraman<\/span>
\n(B) C. Rangarajan<\/span>
\n(C) Vijay Kelkar<\/span>
\n(D) None of the above<\/span>
\n

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Answer – (C)<\/div><\/div><\/span><\/p>\n

13. The Finance Commission is constituted for a period of<\/span><\/strong><\/span>
\n(A) 4 years
\n(B) 5 years<\/span>
\n(C) 7 years
\n(D) 10 years<\/span>
\n

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Answer – (B)<\/div><\/div><\/span><\/p>\n

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

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Answer – (A)<\/div><\/div><\/span><\/p>\n

15. After the commencement of the Constitution how many Finance Commissions have been constituted?<\/span><\/strong><\/span>
\n(A) 10
\n(B) 8<\/span>
\n(C) 9
\n(D) 15<\/span>
\n

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Answer – (D)<\/div><\/div><\/span><\/p>\n

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

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Answer – (B)<\/div><\/div><\/span><\/p>\n

<\/p>\n

17. Consider the following statements. In India taxes on transactions in Stock-Exchanges and Futures Markets are<\/span><\/strong><\/span>
\n1. Levied by Union<\/span>
\n2. Collected by the State Government
\nCode<\/strong><\/span>
\n(A) Only 1<\/span>
\n(B) Only 2<\/span>
\n(C) Both 1 and 2<\/span>
\n(D) Neither 1 nor 2<\/span>
\n

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Answer – (C)<\/div><\/div><\/span><\/p>\n

18. The Finance Commission consists of a Chairman and<\/span><\/strong><\/span>
\n(A) Seven other members<\/span>
\n(B) Five other members<\/span>
\n(C) Four other members<\/span>
\n(D) Such other members as may be decided by the President from time-to-time<\/span>
\n

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Answer – (C)<\/div><\/div><\/span><\/p>\n

19. Consider the following statements and select the correct answer from the code given below.<\/strong>
\nAssertion (A):<\/strong> State Finance Commission is a Constitutional body.
\nReason (R):<\/strong> Union Finance Commission cannot recommend financial assistance to Panchayats.
\nCode<\/strong><\/span>
\n(A) Both (A) and (R) are true and <\/span>(R) is the correct explanation of <\/span>(A)<\/span><\/span>
\n(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A)<\/span>
\n(C) (A) is true, but (R) is false<\/span>
\n(D) (A) is false, but (R) is true<\/span>
\n

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Answer – (C)<\/div><\/div><\/span><\/p>\n

20. Consider the following statements. The function(s) of the Finance Commission is\/are<\/span><\/strong><\/span>
\n1. To allow the withdrawal of the money out of the Consolidated Fund of India.<\/span>
\n2. To allocate among the States the shares of proceeds of taxes.<\/span>
\n3. To consider applications for grants-in-aid from States.<\/span>
\n4. To supervise and report on whether the Union and State Governments are levying taxes in accordance with the budgetary provisions.
\nWhich of these statements is\/are correct?<\/strong><\/span>
\n(A) Only 1<\/span>
\n(B) 2 and 3<\/span>
\n(C) 3 and 4<\/span>
\n(D) 1, 2 and 4<\/span>
\n

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Answer – (B)<\/div><\/div><\/span><\/p>\n

21. Article 280 of the Indian Constitution lays down the establishment of the.<\/strong><\/span>
\n(A) Planning Commission <\/span>
\n(B) Inter-State Council <\/span>
\n(C) River Waters Tribunal <\/span>
\n(D) Finance Commission<\/span>
\n

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Answer – (D)<\/div><\/div><\/span><\/p>\n

22. Which one of the following statements about the 15th Fifteenth Finance Commission is NOT correct?<\/strong><\/span>
\n(A) The 15th Fifteenth Finance Commission was appointed by the Government of India in November 27, 2017.<\/span>
\n(B) Sri N.K. Singh is its Chairman.<\/span>
\n(C) The recommendations of the commission will cover the five year period 2021-26.<\/span>
\n(D) The commission has been asked to submit its report by August 30, 2020.<\/span>
\n

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Answer – (D)<\/div><\/div><\/span><\/p>\n

23. The first Finance Commission of India was set up in the year:<\/strong><\/span>
\n(A) 1956<\/span>
\n(B) 1965<\/span>
\n(C) 1951<\/span>
\n(D) 1948<\/span>
\n

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Answer – (C)<\/div><\/div><\/span><\/p>\n

24. Who among the following is the 15th Chairman of the Finance Commission of India?<\/strong><\/span>
\n(A) C. Rangarajan<\/span>
\n(B) Vijay L. Kelkar<\/span>
\n(C) Y. V. Reddy<\/span>
\n(D) N.K Singh<\/span>
\n

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Answer – (D)<\/div><\/div><\/span><\/p>\n

25. Who determines the centre – state financial relations from the following?<\/strong><\/span>
\n(A) Ministry of Finance<\/span>
\n(B) National Development Council<\/span>
\n(C) Planning Commission<\/span>
\n(D) Finance Commission<\/span>
\n

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Answer – (D)<\/div><\/div><\/span><\/p>\n

26. Who was the Chairman of the first Finance Commission of India?<\/strong><\/span>
\n(A) K. C. Niyogi<\/span>
\n(B) Mahavir Tyagi<\/span>
\n(C) K. Santhanam<\/span>
\n(D) Y. B. Chavan<\/span>
\n

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Answer – (A)<\/div><\/div><\/span><\/p>\n

27. Which of the following statements is\/are correct about the Finance Commission of India?<\/strong><\/span>
\n1. The eligibility of members of the Finance Commission is determined by the President.<\/span>
\n2. The First Finance Commission was constituted in 1951.<\/span>
\n3. The President of India constitutes the Finance Commission every 5 years.<\/span>
\n4. Chairman of Finance Commission submits his report to the Parliament of India.<\/span>
\n(A) 1 and 2 only<\/span>
\n(B) 2 and 3 only<\/span>
\n(C) 3 and 4 only<\/span>
\n(D) 1 and 4 only<\/span>
\n

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Answer – (B)<\/div><\/div><\/span><\/p>\n

28. The controlling authority of government expenditure is ?<\/strong><\/span>
\n(A) The Reserve Bank of India<\/span>
\n(B) The Planning Commission<\/span>
\n(C) The Finance Ministry<\/span>
\n(D) The Finance Commission<\/span>
\n

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Answer – (C)<\/div><\/div><\/span><\/p>\n

29. With respect to the Finance Commission, consider the following statements:<\/strong><\/span>
\n1. The Finance Commission is a statutory body<\/span>
\n2. Recommendations made by the Finance Commission are only advisory in nature<\/span>
\nWhich of the statement(s) given above is\/are incorrect?<\/strong><\/span>
\n(A) 1 only<\/span>
\n(B) 2 only<\/span>
\n(C) Both 1 and 2<\/span>
\n(D) Neither 1 nor 2<\/span>
\n

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Answer – (A)<\/div><\/div><\/span><\/p>\n

30. When is the report submitted by the Finance Commission available in the public domain?<\/strong><\/span>
\n(A) After the submission of the report to the President.<\/span>
\n(B) After the approval of the President<\/span>
\n(C) After it is presented to Prime Minister<\/span>
\n(D) After the report is tabled in the Parliament<\/span>
\n

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Answer – (D)<\/div><\/div><\/span><\/p>\n

31. Which are the two base years of the population taken by the 15th Finance Commission for the tax calculation for states?<\/strong><\/span>
\n(A) 1971 and 2001<\/span>
\n(B) 1971<\/span>
\n(C) 2011<\/span>
\n(D) 1981, 2011<\/span>
\n

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Answer – (C)<\/div><\/div><\/span><\/p>\n

32. Which of the following is not a member of the 15th Finance Commission?<\/strong><\/span>
\n(A) Dr. Rajiv Kumar<\/span>
\n(B) Dr. Ashok Lahiri<\/span>
\n(C) Ajay Narayan Jha<\/span>
\n(D) Dr. Ramesh Chand <\/span>
\n

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Answer – (A)<\/div><\/div><\/span><\/p>\n

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