The primary function of the Finance Commission in India is to
- ADistribution of revenue between the Centre and the States
- BAllocate funds to various ministries of the Union and State Governments
- CAdvise the President on financial matters
- DPrepare the annual budget
Show answer and explanation
Correct answer: (a) Distribution of revenue between the Centre and the States
Explanation
Article 280 of the Constitution provides for the constitution of a Finance Commission by the President every five years or earlier, if necessary. The main function of the Finance Commission is to submit recommendations to the President regarding the distribution of the net proceeds of taxes between the Union and the States, and the allocation of the respective shares among the States.