IAS General Studies Prelims Question No. 103

A State Finance Commission in India:
1. is appointed by Governor of respective state
2. can be appointed every five years or earlier than five years also if the Governor thinks it fit
3. consists of members appointed as per eligibility criteria mentioned in Constitution of India
Select the correct statements from the codes given below:
[A] Only 1 & 2
[B] Only 2 & 3
[C] Only 1
[D] 1, 2 & 3


[C] Only 1
The second statement is not correct because as per article 243I, within One Year from the commencement of Constitution 73rd amendment act, (This means April 24, 1993) and afterwards every 5 years , the State Government would appoint a finance commission. We note here that 12th Finance Commission had recommended an amendment of the Constitution and put the phrase “at such earlier time” after the words “every fifth year”. The Third statement is also incorrect. There is no eligibility criteria fixed in constitution. Here also, 12th FC made recommendation that each State should prescribe through an Act, the qualifications of persons eligible to be appointed as Members of the State Finance Commission.


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