Indian Economy·MCQ Practice

Finance Commission Recommendations — MCQ Practice

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Version 1Updated 6 Mar 2026

Interactive MCQ Practice

Test your knowledge. Click “Solve” to reveal options, select your answer, then check the result. 5 questions available.

Q1medium

Which of the following statements about the Finance Commission of India is/are correct? 1. It is a statutory body constituted by an Act of Parliament. 2. It recommends the distribution of net proceeds of taxes between the Union and the States. 3. The 15th Finance Commission recommended a vertical devolution of 42% of the divisible pool to the states. 4. Its recommendations are binding on the Union government.

Q2hard

Which of the following criteria has NOT been a significant factor in the horizontal devolution formula of recent Finance Commissions (14th and 15th FCs)?

Q3medium

Consider the following statements regarding the 16th Finance Commission: 1. It is chaired by Dr. Arvind Panagariya. 2. Its terms of reference include reviewing the present arrangements for financing disaster management initiatives. 3. It is mandated to make recommendations for the period 2024-2029.

Q4easy

Which Constitutional Amendment Act implemented the 'alternative scheme of devolution' recommended by the 10th Finance Commission, making almost all Union taxes part of the divisible pool?

Q5medium

Regarding grants-in-aid to states by the Finance Commission, which of the following statements is most accurate?

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