Consider the following statements: The function (S) of the Finance Commission is/are 1. to allow the withdrawal of 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?

The Finance Commission is a constitutional body constituted under Article 280 of the Indian Constitution. Its primary functions include recommending the distribution of net proceeds of taxes between the Union and the States, and among the States themselves, which validates statement 2. It also recommends the principles that should govern the grants in aid of the revenues of the States out of the Consolidated Fund of India, which validates statement 3. Statement 1 is incorrect because the withdrawal of money from the Consolidated Fund of India is authorized by the Parliament through the Appropriation Act, not the Finance Commission. Statement 4 is incorrect because the Finance Commission does not have the power to supervise or report on the tax levying process of governments; that is generally the role of the Comptroller and Auditor General and the respective legislatures. Therefore, only statements 2 and 3 are correct.