Indian Economy PYQ – Finance Commission

← Back

Indian Economy PYQ – Finance Commission – 24 questions, subject: Economy. Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.

Get daily current affairs & exam alerts – follow us YouTube WhatsApp Channel Telegram Channel Facebook Page Instagram
Share with friends & study groups
Link to this page from your website / blog (HTML code)
1.  
CBT 2022 · Fisheries Dept. 2023
Name the article of the Indian Constitution which authorizes the appointment of Finance Commission.

Correct Answer: D [Article 280]

Explanation:

Article 280 of the Constitution empowers the President to constitute a Finance Commission every five years.

2.  
AGGS 2021
Consider the following statements :
1. Finance Commission determines the resources transfer to the States.
2. Article 280(3) speaks about the functions of the Finance Commission.
3. The tenure of Finance Commission is six years.
4. The Finance Commission is appointed by President.
From the above, which are correct statements?

Correct Answer: D [1, 2 and 4]

Explanation:

The Finance Commission recommends resource transfers to states, Article 280(3) lists its functions, and it is constituted under Article 280(1), making statements 1, 2 and 4 correct.

3.  
AHGS 2021
Which of the following is not the function of Finance Commission?

Correct Answer: D [To formulate a plan for the most effective utilisation of the country's resources]

Explanation:

Framing a plan for the most effective use of national resources was the Planning Commission's task, not a Finance Commission function listed in Article 280(3).

4.  
Group 1 & 1A 2025
Which of the following is not the function of the Finance Commission in India?

Correct Answer: A [Preparation of Union budget]

Explanation:

The Union budget is prepared by the Finance Ministry; the Finance Commission only recommends tax sharing, grants-in-aid and other matters referred by the President.

5.  
Junior Technical Asst. (Textile) 2023
Which one of the following statements is correct about Finance Commission?
1. Non-Judicial Body
2. Quasi-Judicial Body
3. Complete-Judicial Body
4. None of the above

Correct Answer: A [2 only correct]

Explanation:

The Finance Commission is a constitutional body with certain civil-court powers such as summoning witnesses and calling for documents, so it is quasi-judicial.

6.  
ARGS 2020 · AGGS 2021 · CEGS 2022 · DEO 2023 · CESGS 2023
The Chairman of the Fifteenth Finance Commission of India

Correct Answer: D [N.K. Singh]

Explanation:

N.K. Singh chaired the Fifteenth Finance Commission, constituted on 27 November 2017.

7.  
Road Inspector 2023
In which year was the 15th Finance Commission established?

Correct Answer: B [2017]

Explanation:

The 15th Finance Commission was constituted on 27 November 2017.

8.  
ADGS 2021
Match List I with List II :
(a) Second Finance Commission – 1. C. Rangarajan
(b) Seventh Finance Commission – 2. K. Santhanam
(c) Twelfth Finance Commission – 3. J.M. Shelat

Correct Answer: A [2 3 1]

Explanation:

K. Santhanam chaired the Second Finance Commission, J.M. Shelat the Seventh and C. Rangarajan the Twelfth, giving 2 3 1.

9.  
PSY 2022
Match List I with List II :
(a) Fourth Finance Commission – 1. A.M. Khusro
(b) Eighth Finance Commission – 2. P.V. Rajamannar
(c) Eleventh Finance Commission – 3. Y.B. Chavan

Correct Answer: A [2 3 1]

Explanation:

P.V. Rajamannar chaired the Fourth Finance Commission, Y.B. Chavan the Eighth and A.M. Khusro the Eleventh, giving 2 3 1.

10.  
FA 2022 · Health Officer 2023 · JSO 2023 · CTS (Non-Interview Posts) 2024
Match the following :
(a) Eighth Finance Commission – 1. Dr. Vijay Kelkar
(b) Twelfth Finance Commission – 2. Dr. Y.V. Reddy
(c) Thirteenth Finance Commission – 3. Y.B. Chavan
(d) Fourteenth Finance Commission – 4. Dr. C. Rangarajan

Correct Answer: A [3 4 1 2]

Explanation:

Y.B. Chavan chaired the Eighth, C. Rangarajan the Twelfth, Vijay Kelkar the Thirteenth and Y.V. Reddy the Fourteenth Finance Commission, giving 3 4 1 2.

11.  
CTS (Non-Interview Posts) 2025 · CTS (ITI Posts) 2025
Match the following :
(a) The Fourth Finance Commission Chairman of India – 1. N.K.P. Salve
(b) The Sixth Finance Commission Chairman of India – 2. C. Rangarajan
(c) The Ninth Finance Commission Chairman of India – 3. P.V. Rajamannar
(d) The Twelfth Finance Commission Chairman of India – 4. K. Brahmananda Reddi

Correct Answer: C [3 4 1 2]

Explanation:

P.V. Rajamannar headed the Fourth, K. Brahmananda Reddy the Sixth, N.K.P. Salve the Ninth and C. Rangarajan the Twelfth Finance Commission, giving 3 4 1 2.

12.  
Group 1 & 1A 2025
Choose the correct matches from the following :
(i) Fourth Finance Commission – A.K. Chanda
(ii) Tenth Finance Commission – Shri K.C. Pant
(iii) Sixth Finance Commission – Dr. Rajamannar
(iv) Ninth Finance Commission – Shri N.K.P. Salve

Correct Answer: B [(ii) and (iv) are correct]

Explanation:

K.C. Pant chaired the Tenth and N.K.P. Salve the Ninth Finance Commission; A.K. Chanda chaired the Third and Rajamannar the Fourth, so (i) and (iii) are wrong.

13.  
CTS (Interview Posts) 2025
Choose the right matches :
(1) First Finance Commission – K.C. Neogy
(2) Fifth Finance Commission – P.V. Rajamannar
(3) Tenth Finance Commission – K.C. Pant
(4) Twelfth Finance Commission – A.M. Khusro

Correct Answer: C [(1) and (3) are correct]

Explanation:

K.C. Neogy chaired the First Finance Commission and K.C. Pant the Tenth; the Fifth was headed by Mahavir Tyagi, so matches (1) and (3) are correct.

14.  
CTS (ITI Posts) 2024
Choose the right matches (Finance Commission period – Chairman) :
(i) 2000 – 2005 – C. Rangarajan
(ii) 1957 – 1962 – K. Santhanam
(iii) 2015 – 2020 – N.K. Singh
(iv) 1995 – 2000 – K.C. Pant

Correct Answer: D [(ii) and (iv) correct]

Explanation:

K. Santhanam's Second Commission covered 1957-62 and K.C. Pant's Tenth covered 1995-2000, so (ii) and (iv) are correct.

15.  
Library Service 2023
Arrange chronologically the chairmen of the Finance Commission :
1. Y.B. Chavan
2. K. Santhanam
3. K.C. Pant
4. Mahavir Tyagi

Correct Answer: B [2, 4, 1, 3]

Explanation:

The chairmen in order are K. Santhanam (2nd), Mahavir Tyagi (5th), Y.B. Chavan (8th) and K.C. Pant (10th), giving 2, 4, 1, 3.

16.  
Geology Service 2023
What is the period for which the 14th Finance Commission has made its recommendations?

Correct Answer: B [2015 – 2020]

Explanation:

The 14th Finance Commission under Y.V. Reddy made recommendations for 2015-16 to 2019-20, raising the states' share of central taxes from 32% to 42%.

17.  
Group 1B/1C 2024
As per the 15th Finance Commission's report, the states' share of central taxes for the period 2021 – 2026 is ______ percent.

Correct Answer: B [41]

Explanation:

The 15th Finance Commission recommended a 41% share of central taxes for states for 2021-26, 1 point lower than the 14th's 42% because Jammu and Kashmir became a Union Territory.

18.  
Group 1 & 1A 2025
Which of the following statements are true about the Fifteenth Finance Commission?
(i) The criterion of demographic performance has been introduced.
(ii) The criterion of fiscal discipline is given 10% weightage.
(iii) The criterion of forest cover is replaced with forest and ecology.

Correct Answer: C [(i) and (iii) only]

Explanation:

The 15th Finance Commission introduced demographic performance as a criterion in its devolution formula, so (i) and (iii) are true.

19.  
Group 1 2024
In accordance with the recommendation of the 15th Finance Commission, states will be allowed a fiscal deficit of 4.0% of GSDP, of which 0.5% will be tied to reform in the following sector.

Correct Answer: B [Power sector reform]

Explanation:

On the 15th Finance Commission's recommendation, states could borrow 4% of GSDP in 2021-22, of which 0.5% was tied to power sector reforms.

20.  
Combined Research Assistant 2023
The Eighth Finance Commission introduced a new formula for distribution of the income tax among the states as
(i) 10 per cent distributed on the basis of collection of income tax
(ii) 90 per cent distributed on the basis of population and per capita income

Correct Answer: C [Both (i) and (ii)]

Explanation:

The Eighth Finance Commission (Y.B. Chavan) gave 10% of the states' income tax share by collection and the other 90% by population and per capita income criteria, so both are correct.

21.  
Combined Accounts Service 2024
Fast Track Courts have been set up on the recommendation of the

Correct Answer: A [Eleventh Finance Commission]

Explanation:

Fast Track Courts to clear pending cases were set up from 2000-01 on the recommendation of the Eleventh Finance Commission headed by A.M. Khusro.

22.  
Library Service 2023
The mechanisms for balancing the financial might of the centre and the needs of the states are :
(i) Parliamentary Standing Committee on Finance
(ii) NITI Aayog
(iii) Comptroller and Auditor General of India
(iv) Finance Commission

Correct Answer: C [(ii) and (iv) only]

Explanation:

The Finance Commission recommends tax sharing and grants to states, and NITI Aayog coordinates states' development needs with the Centre through cooperative federalism.

23.  
VCGS 2022
Match List I (Commission) with List II (Article of the Constitution of India) :
(a) UPSC – 1. Article 39
(b) Planning Commission – 2. Article 315
(c) Finance Commission – 3. Article 280
(d) Election Commission – 4. Article 324

Correct Answer: A [2 1 3 4]

Explanation:

The UPSC is under Article 315, the Finance Commission under Article 280 and the Election Commission under Article 324, while the Planning Commission was set up by a 1950 resolution, giving 2 1 3 4.

24.  
ACF 2023
The First State Finance Commission was constituted in

Correct Answer: D [1994]

Explanation:

After the 73rd Amendment took effect on 24 April 1993, Article 243-I required state Finance Commissions within a year, and the first was constituted in 1994.

? Full explanations with tables – Indian Economy PYQ book (₹149): www.shanmugamiasacademy.in/study-materials/tnpsc-indian-economy-pyq

📘 இந்தியப் பொருளாதாரம் — முந்தைய ஆண்டு வினா – விடை – விளக்கம் (2020 – 2026)
Here you get the answer with a one-line explanation. 474 வினாக்கள் தமிழ் + ஆங்கிலத்தில் · சரிபார்க்கப்பட்ட விடை + விளக்கம் · 46 அட்டவணைகள் & குறிப்புகள் · 25 பகுதிகள் · 2020 – 2026 TNPSC தேர்வுகள்
Get the book – ₹149 ₹299 →
Score: 0 Answered: 0 / 0