Consider the following statements about Finance Commission:

  1. The Finance Commission submits its report to Finance Minister who causes this report to be laid in the Parliament
  2. The recommendations made by the Finance Commission are binding on the government

Which of the above statements is/are correct?

Answer: [D] Neither 1 nor 2

First statement is incorrect because the commission submits its report to the President. Second statement is incorrect because the recommendations made by the Finance Commission are only of advisory nature and hence, not binding on the government.

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