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Q. Which of the following is NOT the function of the Finance Commission?

A
Recommendations on the distribution between the Union and the States of the net proceeds of taxes
B
Outlining the principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India
C
Recommendations. on any other matter referred to the commission by the President in the Interest of sound finance
D
Recommendations on the increase of dearness allowance to central government employees
Solution:

Setting up rules regarding the distribution of the tax revenues between the Centre and the states.

Determining the principles governing the allocation of Grants-in-Aid to the states and local bodies.

Determining the magnitude of Grants-in-Aid allocated to the states and local bodies.

Any other matter referred to the Commission.

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