MCQ
Fiscal Federalism & Finance Commission MCQ - Practice Questions with Answers
Solve 135 Fiscal Federalism & Finance Commission questions for RAS/RPSC preparation.
Practice questions
Q1Consider the following statements: 1. The Sixteenth Finance Commission was to recommend distribution of net tax proceeds between the Union and the States. 2. It was to recommend allocation among States of the respective shares of such proceeds. 3. It was to recommend principles governing grants-in-aid of State revenues out of the Consolidated Fund of India. 4. It was constituted to decide repo rate changes for the Reserve Bank of India. Which of the statements given above are correct?
Statements 1, 2 and 3 match the PIB description of the Sixteenth Finance Commission's recommendation domain. Statement 4 is incorrect because repo rate decisions are not part of that mandate.
Q2Consider the following statements: 1. Article 279A(1) required the GST Council to be constituted by the President within 60 days of the commencement of the 101st Constitutional Amendment Act, 2016. 2. The GST Council is barred from recommending special GST rates for natural calamities or disasters. 3. Where a proposal is put to vote in the GST Council, the Central Government has one-third weightage and all State Governments together have two-thirds weightage. 4. A voted proposal in the GST Council is carried if the weighted votes in favour are equal to or greater than three-fourths of members present and voting. Which of the statements given above are correct?
Statements 1, 3 and 4 are correct. The GST Council had to be constituted within 60 days; weighted voting gives the Centre one-third and all States two-thirds; and a proposal needs at least three-fourths weighted support. Statement 2 is incorrect because Article 279A(4) expressly includes special rates for additional resources during calamities or disasters among matters on which the Council may recommend.
Q3Consider the following statements: 1. Stamp Duty and Registration Fees are levied by States and are a source of States' own tax revenue. 2. State Excise on liquor is among the major own tax sources of States. 3. Vehicle Tax and State GST are also listed among major State own taxes. Which of the statements given above are correct?
All three statements are correct. The corpus identifies Stamp Duty and Registration Fees, State Excise on liquor, VAT on petroleum products, Vehicle Tax, and State GST as important State own-tax sources.
Q4The Goods and Services Tax Appellate Tribunal (GSTAT) was constituted in:
GSTAT was constituted in 2023 after the Madras High Court struck down provisions on the Tribunal's composition. The principal bench is in New Delhi, with state benches across India.
Q5Consider the following statements: 1. K.C. Neogy was the Chairman of the First Finance Commission of India. 2. The Fifteenth Finance Commission covered FY 2021-22 to 2025-26. 3. Regional Rural Banks are owned 50% by the Central Government, 35% by the concerned State Government, and 15% by the Sponsor Bank. 4. SBI, ICICI Bank and HDFC Bank are designated as Domestic Systemically Important Banks in India. Which of the statements given above are correct?
Statement 1 is correct because K.C. Neogy chaired the First Finance Commission, constituted in 1951. Statement 2 is correct because the Fifteenth Finance Commission covered FY 2021-22 to 2025-26. Statement 3 is incorrect because RRB ownership is Central Government 50%, concerned State Government 15%, and Sponsor Bank 35%; the state and sponsor-bank shares are reversed in the statement. Statement 4 is correct because RBI designates SBI, ICICI Bank and HDFC Bank as D-SIBs.
You've seen 5 of 135 sample questions
Unlimited practice on Fiscal Federalism & Finance Commission comes with the RAS Test Series + Practice pack or Gate Pass.
More questions
6Under the Union Budget 2025-26, the government proposed a new 'Urban Challenge Fund' with a corpus of:
7The Fifteenth Finance Commission covered the period:
8What percentage of capital acquisition in Defence Budget 2026-27 is earmarked for domestic procurement?
9Which committee recommended the merger of railway budget with general budget?
10Consider the following statements: 1. The Fifteenth Finance Commission covered FY 2021-22 to FY 2025-26. 2. The Fifteenth Finance Commission recommended 42% of the divisible pool of central taxes to states after the Jammu and Kashmir reorganisation. 3. The Sixteenth Finance Commission retained the states' share in central taxes at 41%. 4. Cesses and surcharges are retained entirely by the Centre and are not part of the divisible pool. Which of the statements given above are correct?
11Consider the following statements: 1. The Consolidated Fund of India is provided under Article 266. 2. The Contingency Fund of India is established under Article 266. 3. Money can be withdrawn from the Consolidated Fund of India without Parliamentary approval. Which of the statements given above are correct?
12The Goods and Services Tax (GST) Council has recommended how many rate slabs?
13Consider the following statements: 1. The Finance Commission recommends principles governing grants-in-aid of State revenues out of the Consolidated Fund of India. 2. Under Article 280-related terms, the Finance Commission may recommend measures to supplement the resources of Panchayats and Municipalities through the Consolidated Fund of a State. 3. The Sixteenth Finance Commission's terms included reviewing financing arrangements for Disaster Management initiatives. 4. Monetary policy rate-setting is one of the constitutional functions of the Finance Commission. Which of the statements given above are correct?
14What is the net tax receipts estimate in Union Budget 2026-27?
15Under which Article of the Indian Constitution is the Finance Commission established?