Skip to content

CS Professional · CSR and Social Governance · Local Self Governance

The Governor of a State wishes to appoint a body to review the financial position of Panchayats and recommend principles for sharing State tax proceeds with them. Under Part IX, which body must be constituted and how often?

A State Finance Commission must be constituted by the Governor at the expiry of every fifth year. It reviews the finances of Panchayats and recommends how State tax proceeds and grants-in-aid should be shared, while the State Election Commission handles only elections.

  1. AA State Election Commission, once every ten years
  2. BA State Finance Commission, at the expiry of every fifth yearCorrect
  3. CA District Planning Committee, annually
  4. DThe Finance Commission of India, once every two years

Explanation

Article 243I requires the Governor to constitute a State Finance Commission within one year of the Amendment and thereafter at the expiry of every fifth year. It reviews Panchayat finances and recommends sharing of tax proceeds and grants-in-aid. The State Election Commission only conducts elections.

Did you get it right without looking?

One question tells you little. A timed set on Local Self Governance shows your real accuracy, how long you take and where you lose marks.

Practise Local Self GovernanceFree diagnostic mock

More Local Self Governance questions