WBCS.LIVE practice question

The Finance Commission constituted for a period of

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. 4 years
  2. 5 years
  3. 7 years
  4. 10 years

Correct answer and explanation

Correct answer: 5 years

Explanation: The correct answer is B. 5 years. As per Article 280 of the Indian Constitution, the Finance Commission is constituted by the President every 5 years. Its main role is to recommend how the financial resources should be distributed between the Centre and the States. The Commission also advises on grants-in-aid to states and other financial matters referred by the President. This 5-year cycle helps ensure periodic review of Centre-State fiscal relations.