Q1. In 2024, Arvind Panagariya was the 16th Chairman of the Finance Commission of India. Which of the following is correct regarding the responsibilities of the Finance Commission?
- (a) Conducting monetary policy and controlling inflation
- (b) Deciding the number of seats in the Lok Sabha and Rajya Sabha
- (c) Recommending the distribution of financial resources between the Centre and States
- (d) Regulating share markets and financial intermediaries
Answer & solution
Answer: (c) Recommending the distribution of financial resources between the Centre and States
Option 1 is wrong: Monetary policy and inflation control is the mandate of the Reserve Bank of India (RBI), not the Finance Commission.
Option 2 is wrong: Deciding the number of seats in the Lok Sabha and Rajya Sabha is the function of the Delimitation Commission, not the Finance Commission.
Option 4 is wrong: Regulating share markets and financial intermediaries is the mandate of SEBI (Securities and Exchange Board of India).