SHORT ANSWER:
The Finance Commission recommends the distribution of tax revenues between the central and state governments.
DETAILS:
- The Finance Commission is constituted every five years under Article 280 of the Indian Constitution.
- It assesses the financial position of the states and recommends measures to improve their financial health.
- It also recommends the principles governing grants-in-aid to states.
PUNISHMENT / IMPLICATIONS (if applicable):
- Not applicable.
SOURCE:
- Article 280 of the Indian Constitution.
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