Finance Commission of Indian

About

The Finance Commission of India came into existence in 1951. It was established under Article 280 of the Indian Constitution by the President of India. It was formed to define the financial relations between the center and the state. This has led to major changes in the Finance Commission’s recommendations over the years. As per the Constitution, the commission is appointed every 5 years. It consists of a chairman and 4 other members.

Why was Finance Commission established?

The Finance Commission of India came into existence in 1951. It was established under Article 280 of Indian Constitution by the President of India. It was formed to define the financial relations between the center and the state. The Financial Commission Act of 1951 states the terms of the qualifications, disqualifications, eligibility and power of the Finance Commission.

Functions

•Thedistribution between the Union and the States of the net proceeds of taxeswhich are to be, or may be, divided between them and the allocation between theStates of the respectives shares of such proceeds.

•The measures needed to augment the Consolidated Funds of a State to supplement the resources of the Panchayats in the States on the basis of the recommendations made by the Finance Commission of the State.

•The measures needed to augment the Consolidated Fund of a State to supplement the resources of the Municipalities in the state on the basis of the recommendations made by the Finance Commission of the State.

Qualifications of the members

•Shoul dhave the qualification as a Judge of High court.

•Should have knowledge of Government finances or accounts.

•Have had experience in administration and financial expertise.

•Have special knowledge of economics.

Power of the Commission

•Has all powers of the civil court as per the Code of Civil Procedures.

•Can summon and enforce the attendance of any witness or ask any person to deliver information or produce a document.

•Can ask for the production of any public record or document from any court or office.

•Shall be deemed to be a civil court for purposes of Section 480 & 482 of the Code of Criminal Procedure,1898.

List of Finance Commissions

Finance Commission Year of establishment Chairman Operational duration
First 1951 K. C. Neogy 1952-57
Second 1956 K. Santhanam 1957-62
Third 1960 A. K. Chanda 1962-66
Fourth 1964 P. V. Rajamannar 1966-69
Fifth 1968 Mahaveer Tyagi 1969-74
Sixth 1972 K. Brahmananda Reddy 1974-79
Seventh 1977 J. M. Shelat 1979-84
Eighth 1983 Y. B. Chavan 1984-89
Ninth 1987 N. K. P. Salve 1989-95
Finance Commission Year of establishment Chairman Operational duration
Tenth 1992 K.C. Pant 1995-00
Eleventh 1998 A.M. Khusro 2000-05
Twelfth 2002 C. Rangarajan 2005-10
Thirteen 2007 Dr. Vijay L. Kelkar 2010-15
Fourteenth 2013 Dr. Y. V Reddy 2015-20
Fifteenth 2017 N. K. Singh 2020-25

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