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State PCS PYQPrelims 2021

UPPCS · Question 134

The primary duty of the Finance Commission of India is:

To give recommendations on distribution of tax revenue between the Union and States
To prepare the Union Annual Budget
To advise the President on financial matters
To allocate funds to various Ministries/Departments of the Union and State Governments

Show answer & explanation

Answer: (A) To give recommendations on distribution of tax revenue between the Union and States

Explanation

Article 280(3)(a): the FC recommends sharing of divisible tax proceeds between the Union and the states.