FINANCE COMMISSION FROM FIRST TO FIFTEEN

ADHYAYAN IAS ACADEMY, LUCKNOW

FINANCE COMMISSION OF INDIA

Article 280 of the Indian Constitution defines the scope of the commission:

.The President will constitute a finance commission within two years from the commencement of the Constitution and thereafter at the end of every fifth year or earlier, as the deemed necessary by him/her, which shall include a chairman and four other members.

.Parliament may by law determine the requisite qualifications for appointment as members of the commission and the procedure of selection.

3.The commission is constituted to make recommendations to the president about the distribution of the net proceeds of taxes between the Union and States and also the allocation of the same among the States themselves. It is also under the ambit of the finance commission to define the financial relations between the Union and the States. They also deal with the devolution of unplanned revenue resources.

FUNCTION OF FINANCE COMMISSION:

1. Distribution of ‘net proceeds’ of taxes between Centre and the States, to be divided as per their respective contributions to the taxes.
2. Determine factors governing Grants-in-Aid to the states and the magnitude of the same.
3. To make recommendations to the president as to the measures needed to augment the Fund of a State to supplement the resources of the panchayats and municipalities in the state on the basis of the recommendations made by the finance commission of the state.
4. Any other matter related to it by the president in the interest of sound finance.
5. A finance commission is an autonomous body which is governed by the government of India.

FINANCE COMMISSION ACT 1951

The Finance Commission (Miscellaneous Provisions) Act, 1951 was passed to give a structured format to the finance commission and to bring it to par with world standards, by laying down rules for the qualification and disqualification of members of the commission, and for their appointment, term, eligibility and powers.

Qualification :

The Chairman of a finance commission is selected from people with experience of public affairs. The other four members are selected from people who:

1.Are, or have been, or are qualified, as judges of a High court,

2.Have knowledge of government finances or accounts, or

3.Have had experience in administration and financial expertise; or

4.Have special knowledge of economics

Disqualification for being a member

A member may be disqualified if:

1.He is mentally unsound; and as follows-

2.He is an undischarged insolvent

3.He has been convicted of an immoral offence;

4.His financial and other interests are such that it hinders the smooth functioning of the commission.

Term of office and eligibility for reappointment

Every member will be in office for the time period as specified in the order of the President, but is eligible for reappointment provided he has, by means of a letter addressed to the president, resigned his office.

Salaries and allowances

The members of the commission shall provide full-time or part-time service to the commission, as the President specifies in his order. The members shall be paid salaries and allowances as per the provisions made by the central government 

List of finance commission:

Finance commission are following from first to fifteen with all basic details