UPSC Prelims 2010 · General Studies
Question 144: Polity and Governance
Which one of the following authorities makes recommendation to the Governor of a State as to the principles for determining the taxes and duties which may be appropriated by the Panchayats in that particular State ?
AnswerThe answer is (b).
Under Article 243I the State Finance Commission reviews the finances of the Panchayats and recommends to the Governor the principles governing the taxes, duties, tolls and fees that may be assigned to or appropriated by them, and the grants-in-aid to them from the State's Consolidated Fund. District Planning Committees prepare draft development plans for the district, and the State ministries do not make this recommendation. Remember: Article 243I = State Finance Commission; Article 280 = Union Finance Commission.
Why each option is right or wrong
- (a) District Planning Committees prepare district plans, not finance recommendations.
- (b) Right: the State Finance Commission makes this recommendation to the Governor.
- (c) The State Finance Ministry does not make the recommendation.
- (d) The State Panchayati Raj Ministry does not make the recommendation.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2010, General Studies, Series A. The paper on upsc.gov.in.