Skip to content

CSEET · Economic and Business Environment · Key Government Institutions

Under the Constitution of India, the Finance Commission is constituted by the President at intervals of every how many years, unless an earlier constitution is considered necessary?

The Finance Commission is constituted by the President every five years, or earlier if necessary, under Article 280 of the Constitution. It recommends how net tax proceeds are shared between the Union and States and the principles for grants-in-aid to States.

  1. AThree years
  2. BFive yearsCorrect
  3. CSeven years
  4. DTen years

Explanation

Article 280 requires the President to constitute a Finance Commission at the expiry of every fifth year or earlier. Its main task is to recommend the sharing of net tax proceeds between the Union and the States. Three, seven or ten years do not match the constitutional interval.

Did you get it right without looking?

One question tells you little. A timed set on Key Government Institutions shows your real accuracy, how long you take and where you lose marks.

Practise Key Government InstitutionsFree diagnostic mock

More Key Government Institutions questions