Finance Commissions(Macro Economics ) Questions and Answers

Question 1. Which one of the following authorities recommends the Principles governing the grants-in aid of the revenues to the States out of the Consolidated Fund of India?
  1.    Finance Commission
  2.    Inter-State Council
  3.    Union Ministry of Finance
  4.    Public Accounts Committee
Explanation:-
Answer: Option A. -> Finance Commission


Question 2. Who was the Chairman of the Twelfth Finance Commission?
  1.    A.M. Khusro
  2.    K.C. Pant
  3.    Montek Singh
  4.    C. Rangarajan
Explanation:-
Answer: Option D. -> C. Rangarajan


Question 3. Which one of the following institutions will lay down the basic principles for the distribution of the net proceeds of the taxes between the Union and States?
  1.    Planning Commission
  2.    National Development Council
  3.    Finance Commission
  4.    Union Ministry of Finance
Explanation:-
Answer: Option C. -> Finance Commission


Question 4. Who was the Chairman of the 13th Finance Commission?
  1.    Indira Rajaraman
  2.    C. Rangarajan
  3.    Vijay Kelkar
  4.    None of the above
Explanation:-
Answer: Option C. -> Vijay Kelkar


Question 5. Generally, in India Finance Commission is appointed for every five years _________.
  1.    To determine the financial position of the States
  2.    To determine the financial position of Central Government
  3.    To determine the financial resources of Central Government
  4.    To determine the share of the States in the grants and revenues of the Central Government
Explanation:-
Answer: Option D. -> To determine the share of the States in the grants and revenues of the Central Government


Question 6. Who among the following was the Chairman of 14th Finance Commission?
  1.    Shanta Kumar
  2.    C. Rangarajan
  3.    Y.V. Reddy
  4.    None of the above
Explanation:-
Answer: Option C. -> Y.V. Reddy


Question 7. Finance is distributed between the Centre and the State on the recommendations of which of the following?
  1.    Planning Commission
  2.    Public Accounts Committee
  3.    Finance Commission
  4.    National Development Council
Explanation:-
Answer: Option C. -> Finance Commission


Question 8. Who of the following shall cause every recommendation made by the Finance Commission to be laid before each House of the Parliament?
  1.    The President of India
  2.    The Speaker of Lok Sabha
  3.    The Prime Minister of India
  4.    The Union Finance Minister
Explanation:-
Answer: Option A. -> The President of India


Question 9. The main functions of Finance Commission is __________.
  1.    To determine the part of States in central taxes and to determine the principles of financial aid given by the Centre to States
  2.    Financial control over States
  3.    Financial control over Central
  4.    None of the above
Explanation:-
Answer: Option A. -> To determine the part of States in central taxes and to determine the principles of financial aid given by the Centre to States


Question 10. The Finance Commission is primarily concerned with recommending to the President about _________.
  1.    The principle governing grantsin-aid to be given to the States
  2.    Distributing the net proceeds of the taxes between the Centre and the States
  3.    Neither (A) nor (B)
  4.    Both (A) and (B)
Explanation:-
Answer: Option D. -> Both (A) and (B)


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