Consider the following statements: The function (S) of the Finance Commission is/are 1. 1. to allow the withdrawal of money out of the Consolidated Fund of India. 2. 2. to allocate between the States the shares of proceeds of taxes. 3. 3. to consider applications for grants-in-aid from States. 4. 4. to supervise and report on whether the Union and State governments are levying taxes in accordance with the budgetary provisions. Which of these statements is/are correct?

1. The question asks about the functions of the Finance Commission in India. 2. Statement 1: To allow withdrawal of money from the Consolidated Fund of India. This is incorrect; withdrawals are authorized by Parliament through Appropriation Acts, not by the Finance Commission. 3. Statement 2: To allocate between the States the shares of proceeds of taxes. This is correct; recommending the distribution of net proceeds of taxes between the Union and States (vertical devolution) and among the States (horizontal devolution) is a primary function (Article 280). 4. Statement 3: To consider applications for grants-in-aid from States. This is correct; recommending the principles governing grants-in-aid to States out of the Consolidated Fund of India is another key function (Article 280 referring to Article 275). 5. Statement 4: To supervise and report on whether Union and State governments are levying taxes according to budgetary provisions. This is incorrect; this supervisory role typically falls under bodies like the Comptroller and Auditor General (CAG) and legislative committees, not the Finance Commission. 6. Correct statements are 2 and 3. 7. This corresponds to option (B).