Question

Which authority recommends the principles governing the grants-in-aid of the revenues of the states out of the Consolidated Fund of India?

• A. Public Accounts Committee
• B. Union Ministry of Finance
• C. Finance Commission
• D. Inter State Council

Hint:

Remember: Finance Commission = Article 280 = Revenue sharing + Grants-in-aid recommendations.

Answer 1

The Correct Option is C

Step 1: Article 280 of the Indian Constitution provides for the Finance Commission.
Step 2: The Finance Commission recommends how the Union government should distribute tax revenues between the Centre and the States.
Step 3: It also lays down the principles governing grants-in-aid from the Consolidated Fund of India to the states in need of financial assistance. \[ \boxed{\text{Finance Commission}} \]