QuestionPolity / Finance Commission
Which one of the following statements about the Finance Commissions, periodically established by the Government of India, is NOT true?
- (a) It recommends distribution of taxes between the Union and the states
- (b) It recommends the principles governing the grants-in-aid of revenues of states
- (c) It recommends measures to augment the consolidated fund of a state
- (d) It recommends measures regarding the salary of government employees
Answer: (d) It recommends measures regarding the salary of government employees
Under Art. 280, the FC recommends sharing of taxes (vertical and horizontal), principles of grants-in-aid (Art. 275), and measures to augment state consolidated funds for local bodies. Salaries of government employees are fixed by Pay Commissions, not the FC.