Vision Academy EducareVision Academy Educare
Question 29 of 60 · Constitutional & Statutory Bodies
Questioneasy
This question was previously asked in

SSC

Besides its Chairman, the Finance Commission consists of how many other members?

Answer View answer ▾

Answer: Option B — Four other members

Detailed Solution

The Finance Commission consists of a Chairman and four other members, appointed by the President.

Appointment:

  • The Finance Commission is appointed by the President every five years, or earlier if needed.
  • Parliament decides the qualifications of the members and the manner of their selection by law.

Qualifications under the Finance Commission (Miscellaneous Provisions) Act:

The Chairman should be a person with experience in public affairs.

The other four members should be selected from among the following:

  • A judge of a High Court or a person qualified to be appointed as one.
  • A person with special knowledge of the finances and accounts of the government.
  • A person with wide experience in financial matters and administration.
  • A person with special knowledge of economics.

Term and re-appointment:

  • Members hold office for the period specified by the President in the order of appointment.
  • They are eligible for re-appointment.

Functions of the Finance Commission:

  • To recommend how the net proceeds of shared taxes should be divided between the Centre and the states, and how they should be allocated among the states.
  • To recommend the principles governing grants-in-aid to the states out of the Consolidated Fund of India.
  • To suggest measures to augment the Consolidated Fund of a state to supplement the resources of panchayats and municipalities.
  • Any other matter referred to it by the President in the interests of sound finance.

Nature of its recommendations:

  • Its recommendations are advisory and not binding on the government.
  • They are laid before both Houses of Parliament with an explanatory memorandum on the action taken.

Importance:

It is called a "balancing wheel of fiscal federalism" because it helps reduce imbalances between the Centre and the states, and among states.

Goods and Services Tax:

After the introduction of GST, the GST Council also plays an important role in fiscal federalism.

Why not the other options?

  • ✗Two, three and six other members do not match the composition of the Commission.

Quick tip

Remember: Finance Commission = Chairman + 4 members, appointed by the President every five years.

💬 Discussions on this question

Ask a doubt ›

Still stuck on this question? Ask our faculty and fellow students — answers appear here.

Ask a doubt

More Constitutional & Statutory Bodies Questions

View all ›
  1. Q1.The Planning Commission was replaced by:
  2. Q2.The Election Commission of India was established on:
  3. Q3.Article 148 of the Constitution of India deals with the:
  4. Q4.The National Commission for Women was set up in:
  5. Q5.Who gives advice to the Government of India on legal matters?

More General Knowledge Questions

  1. Q1.The techniques of Rasa and Bhava used in Indian classical dance trace their origin to which ancient text?Indian Dance Forms
  2. Q2.Lavani, Powada, Koli, Waghya Murali and Dhangari Gaja are folk dances of which state?Indian Dance Forms
  3. Q3.The one-act play associated with the Sattriya tradition of Assam is called:Indian Dance Forms
  4. Q4.Which dance form of Goa is known as the 'Warrior Dance'?Indian Dance Forms
  5. Q5.Manipuri dance is based on the Rasleela themes of:Indian Dance Forms

Constitutional & Statutory Bodies — Preparation

This question tests your understanding of Constitutional & Statutory Bodies, a key topic in the General Knowledge section. The detailed solution above uses a step-by-step approach to show the reasoning, and where available, a shortcut that helps you solve similar questions in under 90 seconds during the actual exam.

This topic covers bodies set up under the Constitution, such as the Election Commission, UPSC, Finance Commission, Comptroller and Auditor General and the national commissions for Scheduled Castes and Scheduled Tribes, and statutory or executive bodies such as NITI Aayog, the NHRC, the CVC, the CBI and Lokpal. Questions often ask whether a body is constitutional or not, which article creates it, who appoints its head and for how long. For example, the CAG is appointed under Article 148, the Finance Commission under Article 280, and NITI Aayog replaced the Planning Commission in 2015 by an executive resolution. Practise the constitutional and statutory bodies questions below, written in the style of the general awareness sections of exams such as SSC, banking, railways, CUET GAT, MAH CET and CLAT. Each question comes with a detailed explanation that adds related facts, so every question helps you revise more than one point.

‹ All Constitutional & Statutory Bodies questionsBrowse all topics ›