Home PYQs UPPSC UPPSC MCQs Prelims 2007 (GS Paper I)

Question

Finance is divided between the Central and the States:

  1. On the recommendation of the finance ministry
  2. On the recommendation of the finance commission
  3. On the recommendation of the Reserve Bank
  4. On the Recommendation of NABARD

Answer:

Option B: On the recommendation of the finance commission

Detailed Solution:

The correct answer is “On the recommendation of the finance commission”.

The division of finances between the Central government and the States in India is determined by the recommendations of the Finance Commission, which is constituted under Article 280 of the Indian Constitution.