Indian Polity › Public Finance & Finance Commission – UPSC Prelims PYQs

With reference to Union Budget, consider the following statements :

1. The Union Finance Minister on behalf of the Prime Minister lays the Annual Financial Statement before both the Houses of Parliament.
2. At the Union level, no demand for a grant can be made except on the recommendation of the President of India.

Which of the statements given above is/are correct ?

With reference to the funds under Members of Parliament Local Area Development Scheme (MPLADS), which of the following statements are correct ?

1. MPLADS funds must be used to create durable assets like physical infrastructure for health, education, etc.
2. A specified portion of each MP's fund must benefit SC/ST populations.
3. MPLADS funds are sanctioned on yearly basis and the unused funds cannot be carried forward to the next year.
4. The district authority must inspect at least 10% of all works under implementation every year.

Select the correct answer using the code given below :

With reference to the Union Government, consider the following statements :

1. The Department of Revenue is responsible for the preparation of Union Budget that is presented to the Parliament.
2. No amount can be withdrawn from the Consolidated Fund of India without the authorization from the Parliament of India.
3. All the disbursements made from Public Account also need the authorization from the Parliament of India.

Which of the statements given above is/are correct?

The authorization for the withdrawal of funds from the Consolidated Fund of India must come from

All revenues received by the Union Government by way of taxes and other receipts for the conduct of Government business are credited to the

With reference to the Finance Commission of India, which of the following statements is correct?

Who of the following shall cause every recommendation made by the Finance Commission to be laid before each House of Parliament?

Consider the following statements: In India, stamp duties on financial transactions are

1. Levied and collected by the State Government
2. Appropriated by the Union Government.

Which of these statements is/are correct?

Consider the following statements: The function(s) of the Finance Commission is/are

1. To allow the withdrawal of money out of the Consolidated Fund of India.
2. To allocate between the States the shares of proceeds of taxes.
3. To consider applications for grants-in-aid from States.
4. To supervise and report on whether the Union and State governments are levying taxes in accordance with the budgetary provisions.

Which of these statements is/are correct?

Which one of the following authorities recommends the principles governing grants-in-aid of the revenues to the states out of the Consolidated Fund of India?

The primary function of the Finance Commission in India is to

Which one of the following statements regarding the levying, collecting and distribution of Income Tax is correct?

Agricultural income tax is assigned to the State Governments by