The question asks to identify the body responsible for recommending statutory grants provided by the Union government to states under Article 275 of the Indian Constitution.
Understanding Article 275 Statutory Grants
Article 275 of the Constitution of India empowers Parliament to make provisions for grants-in-aid of the revenues of such States as may be specified in the Orders of the President. These grants are charged on the Consolidated Fund of India. Such grants are generally provided to assist states in need, particularly those facing financial difficulties or requiring funds for specific purposes like promoting the welfare of Scheduled Tribes.
Role of the Finance Commission
The body primarily responsible for recommending the principles governing the distribution of taxes and the allocation of grants-in-aid between the Union and the States is the Finance Commission. Established under Article 280 of the Constitution, the Finance Commission makes recommendations to the President regarding:
- The distribution between the Union and the States of the net proceeds of taxes.
- The allocation between the States of the respective shares of such proceeds.
- The principles that should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India.
Therefore, the recommendations for statutory grants under Article 275 fall within the purview of the Finance Commission.
Analysis of Other Options
- National Development Council (NDC): While the NDC plays a role in economic development planning, it does not constitutionally recommend specific grants under Article 275.
- Ministry of Finance: This ministry is part of the executive branch and implements financial policies but does not make the constitutional recommendation for these grants; rather, it acts upon recommendations made by constitutionally mandated bodies.
- NITI Aayog: NITI Aayog serves as a policy think tank and promotes cooperative federalism, but the specific constitutional role of recommending grants-in-aid is vested in the Finance Commission.
Based on the constitutional framework, the Finance Commission is the body that recommends statutory grants to states under Article 275.
Important Questions from Centre–State Relations
- Distribution of Taxes between Centre and States in India is done by the :
Consider the following statements :
1. The Inter-State Council (ISC) was set up under Article 263 of the Constitution.
2. Punchhi Commission recommended the establishment of the Inter-State Council.
3. The Union Home Minister is the Chairman of the Inter-State Council.
4. It discusses matters of common interests and suggests policies for better coordination.
Choose the correct codes :
- Consider the following statements with reference to the Constitution of India :
1. The Parliament can make laws on matters enumerated in the Union List and/or the Concurrent List.
2. The Parliament can make laws on any matter not enumerated in the Concurrent List or the State List.
Which of the statements given above is/are correct? - Government of which one of the following States has appointed the Rajamannar Committee to study the Centre-State relations ?
- Which one of the following was the mandate of the Dhar Commission (1948)?
