UPSC Prelims 2002·GS1·polity-and-governance·federal structure

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?

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Last updated 23 May 2026, 3:31 pm IST
  1. AFinance CommissionCorrect
  2. BInterstate Council
  3. CUnion Ministry of Finance
  4. DPublic Accounts Committee

Explanation

The correct answer is A because according to Article 280 of the Constitution of India, the Finance Commission is mandated to recommend the principles that should govern the grants in aid of the revenues of the States out of the Consolidated Fund of India. This constitutional body is appointed by the President every five years to define the financial relations between the central government and the individual state governments. While the Union Ministry of Finance manages the funds, the actual recommendations on the principles for distribution are the primary responsibility of the Finance Commission.
polity-and-governance: Which one of the following authorities recommends the principles governing the grants-in-aid of the revenues to the stat
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