IGNOU BPAC 103 2025 2026 - Write the functions of Finance commission of India.

Question

Write the functions of Finance commission of India.

16 Nov 2025

Answer :

Word Count : 307

The Finance Commission of India plays a crucial role in ensuring financial stability and equitable distribution of resources between the Union and the States. One of its primary functions is to recommend the distribution of the net proceeds of taxes between the Union and the States. This involves determining the share of each state in the central taxes, ensuring that resources are allocated based on factors such as population, income, and fiscal capacity, which helps in reducing regional imbalances. Another

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