Question : The Finance Commission:
Option 1: draws up five-year plans
Option 2: formulates monetary policy
Option 3: recommends pay revision of central government employees
Option 4: adjudicates on the sharing of resources between the centre and states
Correct Answer: recommends pay revision of central government employees
Solution : The correct option is to recommend pay revision for central government employees .
A constitutional authority in India called the Finance Commission is in charge of advising how tax income should be split between the Union and state governments. According to Article 280 of the Constitution, the Commission is established by the President of India. The Finance Commission has several duties, including allocating the net proceeds of taxes to the Union and state governments and setting guidelines for the administration of grants-in-aid from state revenues derived from the Consolidated Fund of India.
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