Which of the following statements is INCORRECT about the Finance Commission?

It gives its recommendations on the distribution of tax revenues between the Union and the States only and not among the States.

It recommends measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats.

Its work involves redressing the vertical imbalances between the taxation powers and expenditure responsibilities of the Centre and the States, respectively

It is constituted by the President under Article 280 of the Constitution.