SSC Indian Polity and Civics Sample Paper NCERT Sample Paper-6

  • question_answer
    Under the Constitution, the Central Government collects various types of taxes, which it has to share with the state governments. Which one of the following enjoys constitutional authority to decide the share of states in the tax?

    A)  The Union Finance Minister

    B)  The Finance Commission

    C)  The Planning Commission

    D)  The Union Cabinet in consultation with the Finance Commission

    Correct Answer: B

    Solution :

    [b] Functions of the FC: Distribution of net proceeds of taxes between Centre and the States, to be divided as per their respective contributions to the taxes. Determine factors governing Grants-in Aid to the states and the magnitude of the same. To make recommendations to president as to the measures needed to augment the Consolidated Fund of a State to supplement the resources of the panchayats and municipalities in the state on the basis of the recommendations made by the Finance Commission of the state, and any other matter related to it by the president in the interest of sound finance

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