Official Answer Key & Detailed Solution
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Correct Answer: Option (D) — None of the statements (a), (b) and (c) given above is correct in this context
Concept & Option Breakdown
Standard Reference VerifiedUnder Article 280, the primary duty of the Finance Commission is to make recommendations to the President regarding: (a) the distribution of net tax proceeds between the Union and the States, (b) the allocation among the States of respective shares, (c) the principles governing grants-in-aid to States from the Consolidated Fund of India, and (d) measures to augment the Consolidated Fund of a State to supplement resources of local bodies. None of options (a), (b), or (c) accurately describe the constitutional role of the Finance Commission.
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