Which constitutional body is responsible for recommending principles for the allocation of grants-in-aid to states from the Consolidated Fund of India? 

Correct option is B

The correct answer is: (b) Finance Commission

Explanation:

• The Finance Commission is a constitutional body responsible for recommending the principles for the allocation of grants-in-aid to the states from the Consolidated Fund of India.

• It is constituted under Article 280 of the Indian Constitution, and its primary role is to ensure the financial relations between the central government and the states are equitable.

Information Booster:

• The Finance Commission is reappointed every five years to recommend the distribution of financial resources between the central government and the states.

• It also suggests measures for improving the financial health of state governments and recommends measures for a more efficient fiscal policy.

Additional Information:

• National Development Council – Advises on matters related to national development and policies, but not responsible for financial allocations.

• Planning Commission – The predecessor to NITI Aayog, it was responsible for formulating plans but did not allocate grants from the Consolidated Fund.

• NITI Aayog – Replaced the Planning Commission; it provides policy advice but does not deal directly with financial grants allocation.