The correct answer is Article 280 Explanation & Key Takeaways: • The Finance Commission of India is mentioned in Article 280 of the Constitution of India. • Article 280 mandates the President of India to constitute a Finance Commission every five years or at such earlier time as he considers necessary. • The Finance Commission is responsible for making recommendations on the distribution of the net proceeds of taxes between the Centre and the States, and among the States themselves. • It also advises on measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats and Municipalities in the state, based on the recommendations made by the State Finance Commissions. Related Concepts: • The Finance Commission is a constitutional body created to address the financial relations between the Centre and the States. • It ensures a fair and equitable distribution of financial resources between the Centre and the States, which is crucial for maintaining fiscal federalism in India. • The recommendations made by the Finance Commission are advisory in nature, but they carry significant weight in the formulation of fiscal policies. • The first Finance Commission was established in 1951 under the chairmanship of K.C. Neogy. • The Finance Commission also reviews the state of finances of the Union and State Governments and suggests measures for maintaining a stable and sustainable fiscal environment.