UPSC CSE Prelims
Question 77
With reference to the Finance Commission of India, which of the following statements is correct ?
View correct answer and explanation
Correct answer: D
Correct Option: D
Explanation: Under Article 280, the Finance Commission recommends how selected tax revenues and grants should be distributed between the Union and States and among States.
Option-wise Analysis:
A: Incorrect - It is not an agency tasked with attracting overseas infrastructure investment.
B: Incorrect - It does not divide funds among public-sector companies.
C: Incorrect - Broad accountability is important, but ensuring administrative transparency is not its constitutional mandate.
D: Correct - none of A–C states its key role in federal fiscal devolution.