Indian Polity · Polity
Which of the following statements is false regarding State Finance Commissions (SFCs)?
- 1It helps in enhancing fiscal federalism within the state and country.
- 2SFCs are entrusted to review the financial position of Panchayats and Municipalities and suggest devolution principles.
- 3The primary role of the SFC is to distribute funds that are received strictly from the central government's consolidated fund directly to local bodies.✓
- 4SFCs have been provided under Article 243I of the Constitution of India.
Correct answer
The primary role of the SFC is to distribute funds that are received strictly from the central government's consolidated fund directly to local bodies.
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