Correct option is A
The Finance Commission is tasked with ensuring the fair distribution of financial resources between the Union Government and the State Governments. It recommends the sharing of tax revenue and provides guidelines on grants-in-aid to the states from the Consolidated Fund of India.
The preparation of the Annual Budget is the responsibility of the Ministry of Finance in the Union Government, not the Finance Commission.
While the Finance Commission can advise on financial matters related to the division of resources between the Centre and States, its primary function is to distribute revenue, not to provide general financial advice to the President.
The Finance Commission does not allocate funds to ministries. Instead, it focuses on the distribution of financial resources between the Centre and States.
