Finance Commission Article 280

Finance Commission

The Finance Commission of India was established in 1951. The purpose of its establishment was to transmit the financial relations between the Central Government of India and the State Governments. The term of the Finance Commission is 5 years. The Finance Commission is constituted as a constitutional body under Article 280, it is a quasi-judicial body. It is constituted by the President of India. The Finance Commission in India has been constituted under the Finance Commission Act 1951.

structure

The chairman and members of the Finance Commission are appointed by the President, which consists of a chairman and 4 members, 2 members are full-time members while 2 members are part-time members. Their term is determined by the President and they can also be appointed for a second term.

Attorney General of India Article 76

The following qualifications have been prescribed for the members of the Finance Commission.

• Judge of High Court or person eligible for the post.
  

• Specialist in Accounts and Finance.

• a person who specializes in economics.

• Person with experience in administrative and financial matters.

Disqualification from being a member of the commission[edit]

A member may be disqualified if:

• He is mentally unsound; and as follows-
• He is an undischarged insolvent;
• He has been convicted of an immoral offence.
• His financial and other interests are such that it hinders the smooth functioning of the commission.

The following functions of the Finance Commission have been prescribed:

• Determination and allocation of taxes between the Union and the States.
• To provide necessary measures for augmentation of the Consolidated Fund of the State for allocation of finance to Panchayats and Municipalities in the States.
• The rules regarding grants to the states from the Consolidated Fund of India

15th Finance Commission

The 15th Finance Commission has been constituted by the President of India under the chairmanship of Shri Nand Kishore Singh in November 2017. The term of the 15th Finance Commission will be from 2021 to 2026.

Composition of the Fifteenth Finance Commission

Chairman-           Shri N.K. Singh, Former Member of Parliament and former Secretary to the Government of India

Member  –          1. Shri Ajay Narayan Jha Former, Finance Secretary to the Government of India

                           2.  Dr. Anoop Singh, Adjunct Professor,Georgetown University,USA.

                           3.  Dr. Ashok Lahiri Former Chief Economic Adviser, Ministry of Finance ,Government of India
                                and former Chairman (Non-executive) Bandhan Bank

                           4. Dr. Ramesh Chand, Member, NITI Aayog (Part Time)

Secretary –        Shri Arvind Mehta

List of Finance Commissions