Indian Polity · Polity
Which of the following statements is correct regarding the State Finance Commission constituted under Article 243-I of the Indian Constitution?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It is constituted by the Central Government.
- 2It recommends the principles governing the distribution of taxes between the Union and the States.
- 3It reviews the financial position of the Panchayats and makes recommendations to the Governor.✓
- 4It is a permanent body functioning continuously without re-constitution.
Correct answer
It reviews the financial position of the Panchayats and makes recommendations to the Governor.
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