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    Question

    Centre-State financial relations are looked after by

    the:
    A Ministry of Finance Correct Answer Incorrect Answer
    B Finance Commission Correct Answer Incorrect Answer
    C Sarkaria Commission Correct Answer Incorrect Answer
    D Planning Commission Correct Answer Incorrect Answer

    Solution

    In Centre state financial relations Finance Commission plays an important role. 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 center and the states.

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