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UPSC Prelims PYQ 2002: Authority recommending grants‑in‑aid principles

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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. Interstate Council
  3. Union Ministry of Finance
  4. Public Accounts Committee

Explanation

Option (a) is correct
  • Under Article 280 of the Constitution of India, the Finance Commission of India is responsible for recommending the principles governing the distribution of taxes between the Union and the States, as well as grants-in-aid from the Consolidated Fund of India to the States.
Answer: (a) Finance Commission
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