Q51. The ‘Discretionary Grants’ provided by the Union Government to the States under Article 282 of the Constitution are primarily meant for:
Union-State Relations: RAS Prelims MCQs
86 RAS Prelims MCQs on Union-State relations cover how legislative and executive powers are divided and when Parliament can make laws on State subjects. Residuary powers, Articles 249, 250, 252 and 253, the Governor’s role as an agent of the Centre, Article 356 and the landmark cases are asked as facts and statements.
Practice questions based on the RPSC RAS Prelims syllabus. They follow the exam pattern but are not past-paper questions.
Showing 51–60 of 86 questions
Q52. Arrange the following Articles related to Centre- State financial relations in ascending numerical order:
I. Statutory Grants
II. Finance Commission
III. Taxes levied by Union but collected and appropriated by States
IV. Borrowing by States
I. Statutory Grants
II. Finance Commission
III. Taxes levied by Union but collected and appropriated by States
IV. Borrowing by States
Explanation
The constitutional articles for financial relations follow a specific numerical sequence. Article 268 deals with taxes levied by the Union but collected by states. Article 275 provides for statutory grants to states in need. Article 280 establishes the Finance Commission to recommend tax distribution. Finally, Article 293 outlines the borrowing powers and limitations of the states, completing the fiscal framework of the federation.
Q53. Which of the following taxes is NOT levied by the Union but collected and appropriated by the States (Article 268)?
Explanation
Article 268 specifies certain taxes, like stamp duties on bills of exchange and excise duties on medicinal preparations, that the Union levies but the States collect and keep. Taxes on agricultural income, however, are entirely within the jurisdiction of the State List. States possess the exclusive power to both levy and collect taxes on agricultural income, making it a direct revenue source for regional governments.
Q54. Under Article 280 of the Constitution, the Finance Commission consists of:
Explanation
According to Article 280, the Finance Commission is a quasi-judicial body consisting of a Chairman and four other members. All members are appointed by the President of India. The Constitution empowers Parliament to determine the qualifications and the manner of selection for these members, ensuring the commission possesses the necessary expertise in economics, public affairs, and government finance to fulfill its duties.
Q55. In the context of the Finance Commission’s recommendations, ‘Horizontal Devolution’ refers to:
Explanation
Horizontal devolution refers to the criteria and formula used by the Finance Commission to divide the total divisible pool of taxes among the various states. This differs from vertical devolution, which is the split between the Union and the States collectively. Horizontal devolution considers factors like population, income distance, and fiscal performance to ensure an equitable distribution of resources based on each state’s specific needs.
Q56. Match the Finance Commissions in List-I with their respective Chairmen in List-II:
| Finance Commissions | Chairmen |
|---|---|
| A. 13th Finance Commission | i. Arvind Panagariya |
| B. 14th Finance Commission | ii. N. K. Singh |
| C. 15th Finance Commission | iii. Y. V. Reddy |
| D. 16th Finance Commission | iv. Vijay Kelkar |
Explanation
The leadership of the Finance Commission has evolved through various chairmen. The 13th Commission was headed by Vijay Kelkar, followed by Y. V. Reddy for the 14th. N. K. Singh chaired the 15th Commission, and Arvind Panagariya was appointed for the 16th. These commissions play a vital role in determining fiscal transfers and ensuring the financial stability of both the Union and States.
Q57. The Constitution mandates the constitution of a Finance Commission every fifth year or at such earlier time as the President considers necessary. What is the fundamental cause for this periodic reconstitution?
Explanation
The Finance Commission is reconstituted every five years to address evolving fiscal imbalances between the Union and the States. Economic conditions, state requirements, and national priorities change over time, necessitating a periodic review of tax sharing and grants-in-aid principles. This constitutional mechanism ensures that the distribution of financial resources remains fair, efficient, and responsive to the current financial health of the entire country.
Q58. Which of the following statements correctly describes the legal nature of the recommendations made by the Finance Commission?
Explanation
The recommendations of the Finance Commission are purely advisory in nature. While the Union Government typically respects and implements these suggestions regarding tax devolution and grants, it is not legally bound to do so. The Constitution provides a flexible framework where the central government maintains the ultimate authority to decide on the final allocation of resources after considering the commission’s expert report.
Q59. The Goods and Services Tax (GST) was introduced in the Indian Constitution through which Constitutional Amendment Act?
Explanation
The Goods and Services Tax (GST) was introduced through the 101st Constitutional Amendment Act in 2016. This landmark amendment replaced several indirect taxes levied by both the Union and the States with a unified tax structure. It fundamentally altered the fiscal landscape of India, promoting a common national market and requiring unprecedented cooperation between the central and regional governments in tax administration.
Q60. Read the following statements regarding the GST Council and select the correct option:
Statement I: Article 279A empowers the President to constitute a joint forum of the Centre and the States called the GST Council.
Statement II: The GST Council is chaired by the Prime Minister of India.
Statement I: Article 279A empowers the President to constitute a joint forum of the Centre and the States called the GST Council.
Statement II: The GST Council is chaired by the Prime Minister of India.
Explanation
Article 279A empowers the President to constitute the GST Council, which serves as a joint forum for the Centre and the States. However, the council is chaired by the Union Finance Minister, not the Prime Minister. This structure ensures that fiscal policies regarding GST are decided through a deliberative process involving representatives from all states and the central finance ministry for collective governance.Answer key for these questions
| Q | Correct answer |
|---|---|
| 51 | (a) Any public purpose regardless of Union legislative competence. |
| 52 | (a) III, I, II, IV |
| 53 | (c) Taxes on agricultural income |
| 54 | (d) A Chairman and four other members appointed by the President. |
| 55 | (a) The distribution of the states’ share of taxes among the individual states. |
| 56 | (b) A-iv, B-iii, C-ii, D-i |
| 57 | (b) Addressing fiscal imbalances based on shifting economic realities. |
| 58 | (c) Purely advisory with acceptance left to the Union’s discretion. |
| 59 | (c) 101st Amendment Act, 2016 |
| 60 | (a) Statement I is correct and Statement II is incorrect |
Key facts from Union-State Relations
- Residuary powers, over subjects in none of the three lists, belong to Parliament.
- Parliament can legislate on a State List subject by a two-thirds Rajya Sabha resolution (Article 249), in a National Emergency (Article 250), with State consent (Article 252) and to implement a treaty (Article 253).
- A Rajya Sabha resolution under Article 249 lasts one year at a time.
- Article 256 requires the States to exercise their executive power in compliance with Union laws.
- The S. R. Bommai case (1994) laid down guidelines on Article 356 and made it subject to judicial review.
- The Sarkaria Commission recommended that the Governor be an eminent person from outside the State.
Frequently asked questions
How many RAS Prelims practice MCQs are there on Union-State Relations?
This page has 86 practice MCQs on Union-State Relations (Indian Polity and Governance). Each has the correct answer, and most have an explanation.
What are residuary powers?
The powers of legislation over subjects not mentioned in any of the three lists. Article 248 gives them to Parliament, unlike in the United States, where residuary powers belong to the States.
What did the S. R. Bommai case decide?
In 1994 the Supreme Court laid down guidelines to prevent misuse of Article 356 (President’s Rule). It held that a proclamation is subject to judicial review, and that a floor test is the way to test a government’s majority.
When can Parliament make laws on State subjects?
In five situations: a Rajya Sabha resolution (Article 249), a National Emergency (250), consent of two or more States (252), implementation of international treaties (253) and President’s Rule (356).