Question

Which body is primarily responsible for making recommendations to the President regarding distribution of taxes between Centre and States?

• A. Public Accounts Committee
• B. NITI Aayog
• C. Finance Commission
• D. GST Council

Hint:

Think "Finance" = "Finance Commission". This constitutional body is the key arbiter for the distribution of financial resources between the Centre and the States.

Answer 1

The Correct Option is C

Step 1: Understand the constitutional mechanism for financial distribution.
The Indian Constitution provides for a specific body to be set up periodically to make recommendations on the division of financial resources between the Union government and the State governments.

Step 2: Identify the specific body and its constitutional basis.
This body is the Finance Commission.
It is a constitutional body established by the President of India under Article 280 of the Constitution every five years.
Its primary role is to define the financial relations between the central government and the individual state governments.
This includes recommending how the net proceeds of taxes are to be distributed between them.