Success Samrat

Articles 270, 273, 275 and 280 provides for the constitution of the Finance Commission by the President of India.

Article 280 lays down the foundation of the Finance Commission. A quasi-judicial body. The finance commission act as a connecting link between Centre and States in terms of finance. It has a chairman, who is assisted by four other members who are appointed for five years. They may be reappointed. The parliament of India decides upon the qualification of the chairman and members. An experienced in public affairs is appointed as the Chairman of the finance commission of India. The commission submits its report to the President and he lays it before the parliament. The first commission was appointed in 1951 and its chairman was K.C.NEOGY. The chairman of the 15th commission is N.K.SINGH constituted in 2017. Out of 15 chairmen, Dr C. Rangarajan and Y.V. REDDY were the Governors of the Reserve Bank Of India. The tenure of the formers as the governor was 1992-1997 and of latter was 2003 to 2008.

QUALIFICATION- FINANCE COMMISSION ACT, 1951 DESCRIBES THE QUALIFICATION

• Chairman– Must be expert in public affairs.
• Others Members–
  • Judge of High Court or one qualified to be.
  • Expert in Finances and Accounts of the government.
  • An expert in Economics.
  • Experienced in Financial and Administration matters.

FUNCTIONS OF THE FINANCE COMMISSION

• Distribution of net proceeds of the taxes between the Centre and the States.
• The principles for allocation of grants in aid out of the Consolidated Fund of India.
• Augmentations of the funds from the Consolidated Fund of the State to supplement the resources of the Panchayats and Municipalities. Based on the recommendations made by the finance commission of the State.
• Any other matter of finance referred to the President by the finance commission.
• Till 1960 grants were given to the States of Bihar, Assam, Orissa and West-Bengal in lieu of share in the net proceeds of export duty on jute.

CHAIRMEN’S OF FINANCE COMMISSION