Central and State Financial Relations — Prelims Questions

Consider the following statements about center-state financial relations in India: 1. Cesses and surcharges levied by the Union are shared with states as per Finance Commission recommendations 2. Article 269A was introduced by the 101st Constitutional Amendment to deal with GST 3. The GST Council decisions require a three-fourths majority for passage 4. Service tax was originally assigned to states under Article 268A Which of the statements given above are correct?

Which of the following best describes the constitutional provision under Article 282?

The 15th Finance Commission introduced which of the following new criteria for tax devolution? 1. Demographic performance 2. Forest and ecology 3. Tax and fiscal effort 4. Disaster management

In the context of GST compensation mechanism, consider the following: 1. States were guaranteed 14% annual growth in GST revenues for 5 years 2. Compensation is calculated based on the difference between actual and projected revenues 3. The compensation period was extended beyond the original 5 years due to COVID-19 4. Compensation is funded through a dedicated cess on luxury and sin goods Which of the above statements are correct?

Which of the following statements about the GST Council is/are correct? 1. It is a constitutional body established under Article 279A 2. The Union has one vote while states collectively have two votes 3. Decisions require a three-fourths majority of weighted votes 4. The Union Finance Minister is the ex-officio Chairman