Indian Polity · Chapter 28 of 36

The Finance Commission: BPSC Prelims PYQs

7 previous-year questions on The Finance Commission, asked 1999–2025. Each one opens to its answer and explanation.

1. 1. 67th BPSC Prelims 2022

   With reference to the Finance Commission of India, consider the following statements:
   1. The Finance Commission is a statutory body.
   2. The Finance Commission was established under Article 280 of the Constitution.
   3. The recommendations made by the Finance Commission are only advisory in nature.
   4. The first Finance Commission was established in 1950. Which of the statements given above is/are correct?

   1. A1 and 4 only
   2. B3 and 4 only
   3. C2 and 3 only
   4. DOnly 2 and 4
   5. ENone of the above/More than one of the above
   Answer and explanation →

2. 2. 64th BPSC Prelims 2018

   Under which one of the following Articles is the formation of Finance Commission laid down?

   1. AArticle 280
   2. BArticle 269
   3. CArticle 268
   4. DArticle 265
   5. ENone of the above/More than one of the above
   Answer and explanation →

3. 3. 43rd BPSC Prelims 1999

   Federal Finance Commission in India relates to –

   1. AFinances among the States
   2. BFinances between States and the Centre
   3. CFinances between the Centre and Local Self Governments
   4. DNone of these
   Answer and explanation →

4. 4. 71st BPSC Prelims 2025

   Who among the following determines the qualification which shall be requisite for appointment as member of the finance commission?

   1. ACouncil of Ministers
   2. BPresident of India
   3. CParliament by act
   4. DUnion Cabinet
   Answer and explanation →

5. 5. 70th BPSC Prelims Re-exam 2024

   The primary function of the Finance Commission in India is to

   1. ADistribution of revenue between the Centre and the States
   2. BAllocate funds to various ministries of the Union and State Governments
   3. CAdvise the President on financial matters
   4. DPrepare the annual budget
   Answer and explanation →

6. 6. 45th BPSC Prelims 2001

   Who was the Chairman of the 12th Finance Commission?

   1. AProfessor D. T. Lakdawala
   2. BDr. C. Rangarajan
   3. CShri Digvijay Singh
   4. DShri K. C. Pant
   Answer and explanation →

7. 7. 67th BPSC Prelims 2022

   Which of the following is NOT a member of the 15th Finance Commission?

   1. AAshok Kumar Lahiri
   2. BSudipto Mundle
   3. CRamesh Chand
   4. DAjay Narayan Jha
   5. ENone of the above/More than one of the above
   Answer and explanation →