Consider the following statements : 1. No money bill can be introduced in the Parliament without the recommendation of the President of India. 2. The Prime Minister appoints Finance Commission for distribution of taxes between the Union and the States. Which of the statements given above is/are correct ?

Statement 1 is correct as per the Indian Constitution. A Money Bill, as defined under Article 110, can only be introduced in the Lok Sabha and requires the prior recommendation of the President of India [c1][c2][t5]. This is a mandatory constitutional requirement for its introduction [t6]. Statement 2 is incorrect because the Finance Commission is appointed by the President of India, not the Prime Minister. Under Article 280, the President constitutes the Finance Commission every five years (or earlier if necessary) to recommend the distribution of tax proceeds between the Union and the States [c3][t1][t7]. While the President acts on the advice of the Council of Ministers headed by the Prime Minister, the formal power of appointment and the constitutional mandate rest solely with the President [t2]. Therefore, only the first statement is accurate.

Sources

1. [1] Laxmikanth, M. Indian Polity. 7th ed., McGraw Hill. > Chapter 23: Parliament > Money Bill. > p. 247
2. [2] Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Money Bill. > p. 247
3. [3] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > FINANCE COMMISSION > p. 122