Indian Polity · Local Self Government
What is the primary duty of the Central Finance Commission (constituted under Article 280) regarding local bodies?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1To approve the taxation and borrowal limits proposed by the State Panchayati Raj Departments
- 2To recommend measures needed to augment the Consolidated Fund of a State to supplement the resources of local bodies✓
- 3To directly allocate and distribute operational grants to individual Municipalities
- 4To conduct regular delimitation and fiscal audits of rural local bodies
Correct answer
To recommend measures needed to augment the Consolidated Fund of a State to supplement the resources of local bodies
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