Q.The Modern State is :

The Finance Commission determines the transfer of resources from the Union to the States, so option (a) is correct.

In the Tamil Nadu HSC Commerce syllabus, the Finance Commission is studied under public finance and fiscal federalism. It is a constitutional body appointed by the President under Article 280 of the Constitution, normally every five years.

Its core function is to recommend:

• The distribution of the net proceeds of shareable central taxes between the Centre and the States (vertical devolution) and among the States (horizontal distribution).
• The principles governing grants-in-aid to the States from the Consolidated Fund of India.
• Measures to strengthen State finances and support local bodies. …

The modern state is a welfare state, so option (a) is correct.

Unlike the old laissez-faire (police) state, whose role was limited to defence and law and order, the modern state is a welfare state. It actively provides education, health, social security, infrastructure and measures to reduce inequality, which greatly expands public expenditure and the scope of …

The modern state is a welfare state.

Under the old laissez-faire ('police state') idea, the state limited itself to defence, law and order and justice, leaving the economy to market forces. The modern state, by contrast, is a welfare state: it actively provides education, health, social security, employment and infrastructure, and uses public finance (taxes, expenditure, budgets) to prom …