Table of Contents
- 1 Who determines Center state financial?
- 2 Who acts as the constitutional link between the Centre and the states?
- 3 Who is divided financial resources in central and state government?
- 4 Who is responsible to safeguard the distribution of powers between the Centre and the states?
- 5 How are financial relations between centre and state?
- 6 Which is a discretionary grant made by the centre?
Who determines Center state financial?
The Indian Constitution provides for the appointment of a Finance Commission every five years to determine the criteria and amount of finance to be divided between the Centre and the States.
Which Commission review the existing financial relations between Centre and state?
Finance Commission: According to the Constitution the President is empowered to set up a Finance Commission after every five years to make recommendations to him about the distribution of net proceeds of taxes to be divided between the centre and the states.
What is financial relations between Centre and state?
Generally, in a typical federation along with the distribution of legislative and administrative powers, the financial resources of the country are also so distributed to ensure the financial independence of the units.
Who acts as the constitutional link between the Centre and the states?
The Constitution divides legislative authority between the Union and the States in three lists- the Union List, the State List and the Concurrent List. The Union list consists of 99 items. The Union Parliament has exclusive authority to frame laws on subjects enumerated in the list.
Which is the method of financial adjustments between Centre and states?
1. Tax Sharing: Under this method, the proceeds of certain selected taxes, imposed and realised by the Centre, are apportioned between the Centre and the different states.
How the administrative powers are distributed between Centre and state?
As a rule, the Central Government exercises administrative authority over all the matters on which the Parliament has the power to make laws, whereas the State Governments exercise authority over the matters included in the State List.
Who is divided financial resources in central and state government?
Finance Commission Grants & Other Transfers definition: The Finance Commission is a constitutional body set up by the President of India, every five years or earlier to decide the share of the Union government and state governments in the divisible pool of tax revenue.
Who divided financial resources in central and state government Mcq?
The constitution of India has divided the executive, legislative and financial powers between the centre and the states.
Who has complete control over the financial affairs of the state *?
Legislative control over finances is exercised mainly in two stages. The first is at the time of policy-making and the second while reviewing the implementation of the policy. The legislature has the control of the purse and determines the quantum of resources and the manner of raising and spending the same.
Who is responsible to safeguard the distribution of powers between the Centre and the states?
Government of India to be necessary for the purpose. It is further stipulated under Article 246 of the Constitution that if the state government fails to endorse the laws passed by the Parliament within its jurisdiction, the union government can issue directions to the states to ensure their compliance.
Who plays vital role in the relation between Centre state administrative relations?
Articles 256 to 263 in Part XI of the Constitution deal with the administrative relations between the Centre and the states. The President can establish (under Article 263) an Inter-State Council to investigate and discuss subjects of common interest between the Centre and the states.
How do states get revenue from the center?
States receive 46% of their revenue from the central government: (i) 26% received as states share in central taxes, and (ii) 20% received as grants-in-aid for schemes and other programmes.
How are financial relations between centre and state?
In this article we will discuss about the financial relations between centre and state. In financial field too the centre is more powerful than the states. In fact, for their development plans the states are purely dependent on the centre. No state can afford to work without active financial assistance of the central government.
What is the Constitution of the Finance Commission?
Provision has been made for the constitution of a Finance Commission to recommend to the President certain measures for the distribution of financial resources between the Union and the States (Art.280).
How are loans given to States by the centre?
Loans are given by the Centre to the State at concessional rates by extending overdraft facilities without any consideration of productivity and repayment capacity. These loans have been rising steadily over the entire plan period. Such loans are outside the scope of recommendations of the Finance Commissions.
Which is a discretionary grant made by the centre?
Apart from this, Art.282 provides for discretionary grants by the Centre and States both, for any public purposes. The Centre makes such grants on the recommendation of the Planning Commission (an extra-constitutional body). Loans: The Union Government may provide loan to any State or give guarantees with respect to loans raised by any State.