Which of the following commissions has the power to distribute financial resources between the centre and the states?
Answer & explanation
Correct answer: option 2
***The correct answer is Option (2) - Finance commission***
The Finance Commission of India has the power to distribute financial resources between the central government and the state governments. The Finance Commission is a constitutional body established under Article 280 of the Constitution of India. Its primary function is to recommend the distribution of tax revenues and grants-in-aid from the central government to the state governments. The Commission also recommends measures to improve the financial position of both the central and state government.