Question
Which of the following statements is/are correct
regarding the 16th Finance Commission (FC)? 1. It is established under Article 280 of the Indian Constitution. 2. It focuses on fiscal devolution to panchayats and municipalities post the 73rd and 74th amendments. 3. The Finance Commission directly allocates funds to urban local bodies (ULBs).Solution
• Statement 1: Correct. Article 280 establishes the Finance Commission. • Statement 2: Correct. It focuses on empowering panchayats and municipalities post the constitutional amendments. • Statement 3: Incorrect. The Finance Commission recommends fund allocation to the states, which then distribute to ULBs.
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