What is the primary purpose of the Finance Commission in India?

CA Foundation · Business Economics · MTP · January 2025
What is the primary purpose of the Finance Commission in India?
(A) A. To formulate monetary policy
(B) B. To allocate central taxes to state governments
(C) C. To recommend measures for economic planning
(D) D. To audit the accounts of the government

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. To allocate central taxes to state governments

Topics: Determination of National Income

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