Previous Year Question
Given below are two statements, one is labelled as Assertion (A) and the other as Reason (R):
Assertion (A): The President of India determines the qualifications of the Chairman and Members of the Finance Commission.
Reason (R): Chairman and members are appointed by the President of India.
Select the correct answer using the codes given below.
Codes:
Both (A) and (R) are true and (R) is the correct explanation of (A).
Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(A) is true, but (R) is false.
(A) is false, but (R) is true.
Correct Answer: D
Detailed Solution
Assertion (A) is incorrect. Under Article 280(2) of the Constitution, Parliament may by law determine the qualifications required for appointment as members of the Finance Commission and the manner of their selection. This power is not assigned to the President.
The Finance Commission (Miscellaneous Provisions) Act, 1951 was enacted under this constitutional provision. Section 3 provides that the Chairman shall be selected from persons having experience in public affairs. The qualifications for the other four members include being or having been a High Court Judge, or being qualified for appointment as one; special knowledge of government finances and accounts; wide experience in financial matters and administration; or special knowledge of economics.
Reason (R) is correct. Under Article 280(1) of the Constitution, the President constitutes the Finance Commission. It consists of a Chairman and four other members, who are appointed by the President.
Article 280(1) further provides that the President shall constitute a Finance Commission within two years of the commencement of the Constitution and thereafter at the expiration of every fifth year, or earlier if considered necessary.
Thus, it is important to distinguish between appointment and determination of qualifications. The President appoints the Chairman and Members of the Finance Commission, but their required qualifications are prescribed by Parliamentary legislation.