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Question No. 292Interactive Test Mode
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Q292. Consider the following statements: The function(s) of the Finance commission is/are: 1. to allow the withdrawal of the money out of the Consolidated Fund of India 2. to allocate between the States the shares of proceeds of taxes 3. to consider applications for grants-in-aid from States 4. to supervise and report on whether the Union and State governments are levying taxes in accordance with the budgetary provisions Which of these statements is/are correct?

Consider the following statements: The function(s) of the Finance commission is/are:

  1. to allow the withdrawal of the money out of the Consolidated Fund of India
  2. to allocate between the States the shares of proceeds of taxes
  3. to consider applications for grants-in-aid from States
  4. to supervise and report on whether the Union and State governments are levying taxes in accordance with the budgetary provisions Which of these statements is/are correct?
Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

Ready to check the official UPSC Answer Key?

Click any option above to test yourself under exam conditions, or reveal the explanation directly.

Official UPSC Answer KeyUPSC Prelims 2003 • Polity

Correct Answer: Option (B) — 2 and 3

Concept & Option Breakdown

Standard Reference Verified

Statement 1 is incorrect: Withdrawal of money from the Consolidated Fund of India requires parliamentary authorization via Appropriation Acts, audited by the CAG. Statement 2 is correct: The Commission determines the distribution of the net proceeds of taxes between the Centre and the States. Statement 3 is correct: The Commission evaluates and recommends grants-in-aid to the States from the Consolidated Fund of India under Article 275. Statement 4 is incorrect: The Finance Commission is an advisory body on revenue devolution and does not supervise executive tax collection or budgetary compliance.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2003 (Q292)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicPolity → Constitution & Amendments
Official Answer KeyOption (B) — 2 and 3

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Frequently Asked Questions — UPSC Prelims 2003 Q292

What is the official answer for UPSC Prelims 2003 GS Paper I Question 292 (Polity)?

The official UPSC answer key for this 2003 Polity (Constitution & Amendments) question is Option (B): "2 and 3". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2003 question belong to?

This question belongs to GS Paper I under the subject "Polity" and micro-topic "Constitution & Amendments". You can explore all repeated questions from Constitution & Amendments in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Constitution & Amendments UPSC Prelims question using option elimination?

To solve Constitution & Amendments questions in UPSC Prelims, identify extreme modifiers, verify core NCERT conceptual definitions, and eliminate mutually contradictory statement pairs before locking your final option.

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