Question:
Which authority recommends the principles governing the grants-in-aid of the revenues of the states out of the Consolidated Fund of India?
Which authority recommends the principles governing the grants-in-aid of the revenues of the states out of the Consolidated Fund of India?
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Remember: Finance Commission = Article 280 = Revenue sharing + Grants-in-aid recommendations.
Updated On: Aug 20, 2025
- Public Accounts Committee
- Union Ministry of Finance
- Finance Commission
- Inter State Council
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The Correct Option is C
Solution and Explanation
Step 1: Article 280 of the Indian Constitution provides for the Finance Commission.
Step 2: The Finance Commission recommends how the Union government should distribute tax revenues between the Centre and the States.
Step 3: It also lays down the principles governing grants-in-aid from the Consolidated Fund of India to the states in need of financial assistance. \[ \boxed{\text{Finance Commission}} \]
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