Which of the following statements is/are true?

A. Composition of the State Finance Commission will be provided by the state government.

B. Article 280 of the Indian Constitution deals with State Finance Commission.

Choose the correct answer:

Key Points

• The composition of the State Finance Commission is indeed provided by the state government as per the Indian Constitution.
• Article 243-I of the Indian Constitution specifically deals with the State Finance Commission, not Article 280.
• Article 280 of the Indian Constitution deals with the Finance Commission of India, which is a central body.
• The State Finance Commission is constituted to review the financial position of the Panchayats and Municipalities and make recommendations to the Governor of the State.

Additional Information

• Article 243-I:
  • This article mandates the constitution of a State Finance Commission every five years by the Governor of the state.
  • The Commission reviews the financial position of the Panchayats and Municipalities and recommends measures to improve their financial status.
  • It suggests the distribution of taxes, duties, tolls, and fees between the state and local bodies.
  • It also advises on grant-in-aid to the Panchayats and Municipalities from the consolidated fund of the state.
• Article 280:
  • This article provides for the constitution of the Finance Commission of India by the President every five years.
  • The Finance Commission is a central body that makes recommendations regarding the distribution of the net proceeds of taxes between the Centre and the States.
  • It also advises on the principles governing grant-in-aid to the states from the Consolidated Fund of India.
  • The Finance Commission ensures a fair and equitable distribution of financial resources between the Centre and the States.