PREVIOUSLY ASKED IN:
PSC Miscellaneous 2012
Answer
Distribution of revenue between Union and States
Explanation
The main function of the Finance Commission, constituted under Article 280 of the Indian Constitution, is to determine the principles for distributing tax revenues between the Union and the States.
Key Points
- > It is constituted under Article 280.
- > It distributes revenue between the Union and the States.
- > It is constituted by the President every 5 years.
Additional Information
- The first Finance Commission was constituted in 1951.
- It is a constitutional body.
- The Finance Commission maintains the balance in the financial relationship between the Centre and the States.
| Subject | Detail |
|---|---|
| Constitutional Article | 280 |
| Main Function | Revenue Distribution |
| Constituted by | President |