New SIDBI Grade A New Batch Starts on Nov 18

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    Question

    Which of the following statements is INCORRECT about the Finance Commission?

    A Its work involves redressing the vertical imbalances between the taxation powers and expenditure responsibilities of the Centre and the States, respectively. Correct Answer Incorrect Answer
    B It recommends measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats. Correct Answer Incorrect Answer
    C It gives its recommendations on the distribution of tax revenues between the Union and the States only and not among the states. Correct Answer Incorrect Answer
    D It is constituted by the President under Article 280 of the Constitution. Correct Answer Incorrect Answer

    Solution

    The correct answer is C

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