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Question

Which of the following is NOT a function of the Finance Commission?

  1. Distribution of net proceeds of taxes between the Union and the States
  2. Determining the principles governing grants-in-aid to the States
  3. Making recommendations to the President on measures to improve the finances of the Union and the States.
  4. Adjudicating disputes between the Union and the States regarding taxation matters.

Answer:

Option D: Adjudicating disputes between the Union and the States regarding taxation matters.

Detailed Solution:

The correct answer is “Adjudicating disputes between the Union and the States regarding taxation matters.”.

The Finance Commission is primarily concerned with the distribution of financial resources and making recommendations. Adjudicating disputes regarding taxation falls under the purview of the judiciary.