With reference to the Finance Commission, consider the following statements:
1. The qualifications for the chairman and other members of the finance commission are laid down in the constitution
2. The recommendations of the finance commission are binding on neither parliament nor president
Which among the above is / are correct statements?

Answer: [B] Only 2

The first statement is incorrect because it is the Finance Commission Act of 1951, which states the terms of qualification, appointment and disqualification, the term, eligibility and powers of the Finance Commission.  Second statement is correct. The recommendations made by the Finance Commission are only of advisory nature and hence, not binding on the government. It is up to the Union government to implement its recommendations on granting money to the states.

This question is a part of GKToday's Integrated IAS General Studies Module