1) Which of the following are major recommendations of 14th Finance Commission?
1. Fiscal deficit to be reduced to 3% of the GDP by 2017–18.
2. A target of 62% of GDP for the combined debt of center and states.
3. Initiatives to reduce the number of Central Sponsored Schemes(CSS).
a. 1,2
b. 2,3
c. 1,3
d. All
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Answer
Explanation
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ANSWER: All
Explanation:
14th Finance Commission has recommended an increase in the share of states in the centre's tax revenue from the current 32 per cent to 42 per cent. This is indeed the single largest increase ever recommended by a Finance Commission.
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2) Match the following finance commissions with their chairman
1. Twelfth Commission --------------------------- i. Y. B. Chavan
2. First Commission ------------------------------ ii.Dr. Y. V Reddy
3. Thirteenth Commission ---------------------- iii. C. Rangarajan
4. Eighth Commission-----------------------------iv. Dr. Vijay L. Kelkar
5. Fourteenth Commission ---------------------- v. K. C. Neogy
a. 1- ii, 2- v, 3-i, 4- iii ,5-iv
b. 1- iv, 2- ii, 3-i, 4- v ,5-iii
c. 1- iv, 2- ii, 3-i, 4- v ,5-iii
d. 1- iii, 2- v, 3-iv, 4- i ,5-ii
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Answer
Explanation
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ANSWER: 1- iii, 2- v, 3-iv, 4- i ,5-ii
Explanation:
No explanation is available for this question!
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3) In which of the following situations, a member of finance commission is disqualified from being a member of the Commission?
1. He is mentally unsound
2. He is an undischarged insolvent
3. He has been convicted of an immoral offense
4. His financial and other interests are such that it hinders smooth functioning of the Commission.
a. 1,2
b. 1,3
c. 1,3,4
d. All the above
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Answer
Explanation
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ANSWER: All the above
Explanation:
Following are the members of 14th finance commission:
Abhijit Sen, Member, Planning Commission; Sushama Nath, Former Union Finance Secretary; M Govinda Rao, former Director of National Institute of Public Finance and Policy; Sudipto Mundle, former Acting Chairman, National Statistical Commission.
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4) Which of the following statements is/are correct about Finance Commission?
1. The Chairman of the Finance Commission is selected among people who have had the experience of public affairs.
2. For selecting members, having special knowledge of economics is the only criteria.
a. Only 1
b. Only 2
c. Both
d. None
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Answer
Explanation
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ANSWER: Only 1
Explanation:
Members are selected based on following criteria:
1. Are, or have been, or are qualified, as judges of High Court, or
2. Have knowledge of Government finances or accounts, or
3. Have had experience in administration and financial expertise; or
4. Have special knowledge of economics
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5) The President appoints the Finance Commission for
1) Makes recommendations regarding the devolution of taxes between the Center and the States.
2) The measures, if needed, to augment State government finances to supplement resources of the local bodies (panchayats and municipalities).
3) Review financial position of Local bodies (Panchayats and Municipalities) and suggest measures to improve the position.
4) Suggestions regarding the principles which would govern the quantum and distribution of grants-in-aid (non-plan grants to states).
a. 1 and 2 only
b. 1, 2 and 3 only
c. 1, 2 and 4 only
d. All of the above
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Answer
Explanation
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ANSWER: 1, 2 and 4 only
Explanation:
Financial position is reviewed by state finance commission appointed by the Governor.
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6) The Fourteenth Finance Commission’s Recommendations will
a. Bring about greater fiscal federalism
b. Reduce other Central transfers to states
c. Give greater autonomy to states on revenue and expenditure
d. All of the above
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Answer
Explanation
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ANSWER: All of the above
Explanation:
No explanation is available for this question!
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7) The 14th financial commission has recommended the grants to states for local bodies be in two parts, a basic grant and a performance grant.
The ratio of basic to performance grant is
1. 80:20 with respect to panchayats
2. 90:10 in the case of municipalities.
Which of the above statements are true?
a. Only 1
b. Only 2
c. Both
d. none
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Answer
Explanation
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ANSWER: none
Explanation:
80:20 with respect to municipalities and 90:10 in the case of panchayats
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8) Consider the following statements related to 14th finance commission
1. Vijay Kelkar is chairman of 14th finance commission
2. It has increased states share in central taxes from 32% during last commission to 42%
3. States be taken away from operation of NSSF (National Small Saving Fund) with effect from next financial year
4. States should empower local bodies to impose advertisment tax to augment their revenues
Which of the above statements are true?
a. 1,2
b. 2,3
c. 1,3
d. All the above
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Answer
Explanation
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ANSWER: 2,3
Explanation:
Y V Reddy is chairman of 14th finance commission
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