Consider the following statements regarding the Finance Commission in India:
The Finance Commission is a constitutional body established under Article 280.
The President of India appoints the chairman and members of the Finance Commission.
The recommendations of the Finance Commission are legally binding on both the central and state governments.
The 16th Finance Commission, chaired by Dr. Arvind Panagariya, has a specific focus on urban fiscal devolution.
Which of the above statements are correct?
Explanation:
Statement 1 is correct: The Finance Commission is indeed a constitutional body established under Article 280.
Statement 2 is correct: The President of India appoints the chairman and members based on their expertise in public affairs, finance, economics, and law.
Statement 3 is incorrect: The recommendations of the Finance Commission are advisory in nature and not legally binding. However, they hold significant persuasive value and are generally accepted.
Statement 4 is correct: The 16th Finance Commission has prioritized urban fiscal devolution, recognizing the growing importance of cities in India's economic landscape.
Explanation:
Statement 1 is correct: The Finance Commission is indeed a constitutional body established under Article 280.
Statement 2 is correct: The President of India appoints the chairman and members based on their expertise in public affairs, finance, economics, and law.
Statement 3 is incorrect: The recommendations of the Finance Commission are advisory in nature and not legally binding. However, they hold significant persuasive value and are generally accepted.
Statement 4 is correct: The 16th Finance Commission has prioritized urban fiscal devolution, recognizing the growing importance of cities in India's economic landscape.