Indian Economy PYQ – Resource Sharing between Union and States
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Federal finance deals with the financial relations between the Centre and the states, including taxation powers, revenue sharing, grants and borrowing.
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Indian Economy PYQ – Resource Sharing between Union and States – 10 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.
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1.
VAS AHGS 2020
In which year did all tax revenues of the Centre become shareable between the Centre and the States?Correct Answer: A [2000]
Explanation:
The 80th Constitutional Amendment of 2000 amended Article 270 on the Tenth Finance Commission's advice, making all Union tax revenues shareable with the states.
2.
AGGS 2021
Following are a few duties collected by the Union and State Governments in India :1. Customs duty
2. Duties in respect of succession to agricultural land
3. Excise duty
4. Estate duty in respect of agricultural land
Select the duties collected by the Union Government :
Correct Answer: C [1 and 3]
Explanation:
Customs duty and the duties on succession to non-agricultural property are Union subjects, whereas duties on agricultural land succession belong to the states, so 1 and 3 are Union levies.
3.
Group 4 2022
Choose the right match :1. Taxes levied and collected by the Union but assigned to the States – Art. 269
2. Duties levied by the Union but collected and appropriated by the States – Art. 268
3. Taxes levied and collected by the Union and distributed between the Union and the States – Art. 267
Correct Answer: C [1 and 2 only]
Explanation:
Taxes assigned to states are covered by Article 269 and duties collected by states by Article 268, while Article 267 deals with the Contingency Fund, so only 1 and 2 are correct.
4.
CAGS 2022
Which of the following taxes are levied by the Union Government but collected and appropriated by the States?(i) Sales tax
(ii) Stamp duty
(iii) Excise duties on medicinal and toilet preparations
(iv) Import duties
Correct Answer: D [(ii) and (iii)]
Explanation:
Under the original Article 268, stamp duties and excise on medicinal and toilet preparations were levied by the Union but collected and kept by the states, not sales tax.
5.
PTGS 2021
To reform Centre–State relations, major recommendations were made by(i) Sarkaria Commission
(ii) Punchhi Commission
(iii) Rajamannar Committee
(iv) Royal Commission
Correct Answer: D [(i), (ii) and (iii)]
Explanation:
The Rajamannar Committee, Sarkaria Commission and Punchhi Commission were the bodies that made major recommendations on Centre-State relations; the Royal Commission was a British body.
6.
CBT 2022
Which one of the following is not a source of State tax revenue?Correct Answer: D [Corporate tax]
Explanation:
Corporation tax is a Union List subject (entry 85), so it is not a source of state tax revenue, unlike land revenue and vehicle tax.
7.
Group 4 2024
Which of the following are incorrectly paired?(i) Taxes on agricultural income – State
(ii) Taxes on land and buildings – State
(iii) Taxes on the consumption or sale of electricity – Centre
(iv) Land revenue – Centre
Correct Answer: C [(iii) and (iv)]
Explanation:
Land revenue, agricultural income tax, taxes on land and buildings and taxes on electricity consumption are state subjects, so pairs (iii) and (iv) are wrongly matched.
8.
Bursar 2023 · CESGS 2023
Which of the following is not listed under the Union List?Correct Answer: C [Capitation tax]
Explanation:
The capitation tax is in the State List (entry 61), whereas corporation tax, non-agricultural income tax and customs are in the Union List.
9.
Asst. Public Prosecutor Gr. II 2025
Identify the subject of the State ListCorrect Answer: B [Irrigation]
Explanation:
Irrigation and canals come under water supply in entry 17 of the State List, while banking, defence and foreign affairs are Union subjects.
10.
FA 2022
Federal finance deals withCorrect Answer: D [Centre and State financial relations]
Explanation:
Federal finance deals with the financial relations between the Centre and the states, including taxation powers, revenue sharing, grants and borrowing.
? Full explanations with tables – Indian Economy PYQ book (₹149): www.shanmugamiasacademy.in/study-materials/tnpsc-indian-economy-pyq
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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
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