Q. Consider the following statements regarding the State Finance Commissions (SFCs) in India:
  1. They are established by Governors of respective states.
  2. They are enshrined in Part-VI of the Constitution.
  3. They recommend the distribution of taxes and revenues between various districts in the state.
Select the correct option from the codes given below:

Answer: Only 1
Notes: Only statement 1 is correct. State Finance Commissions are constituted by the Governor of each state (Article 243-I), but are enshrined in Part IX – not Part VI – of the Constitution. They recommend devolution of funds between the state and local bodies (Panchayats and Municipalities), not districts specifically.