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With reference to the Finance Commission of India, which of the following statements is correct

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With reference to the Finance Commission of India, which of the following statements is correct?

(a)

It encourages the inflow of foreign capital for infrastructure development

(b)

It facilitates the proper distribution of finances among the Public Sector Undertakings

(c)

It ensures transparency in financial administration

(d)

None of the statements (a), (b) and (c) given above is correct in this context

Answer:

(d)

Core Books/NCERT

Explanation

The Finance Commission of India makes recommendations on the distribution of tax proceeds between the center and the states, principles for grants-in-aid to states, and measures to augment state resources. It does not handle foreign capital inflows, Public Sector Undertakings’ finances, or ensure transparency in financial administration.