Question
Write the functions of Finance commission of India.
Answer :
Word Count : 449
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The Finance Commission of India is a constitutional body established under Article 280 of the Constitution of India. Its primary function is to recommend the distribution of financial resources between the Union and the States, ensuring fiscal federalism and equitable sharing of resources. The Finance Commission plays a pivotal role in maintaining financial stability and promoting balanced development across different regions of the country. One of the main functions of the Finance Commission is to determine the distribution of net proceeds of taxes between the Union and the States. It decides what proportion of the central taxes should be allocated to the states, taking into account their population, income, and developmental needs. This ensures that less developed states receive adequate financial support to carry out their administrative and developmental responsibilities. Another crucial function is to recommend the principles that should govern grants-in-aid to the states from the Consolidated Fund of India. These grants are intended to bridge the fiscal gap of states that may not have
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