{"id":3578,"date":"2023-03-04T04:26:22","date_gmt":"2023-03-03T22:56:22","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=3578"},"modified":"2025-03-26T16:33:31","modified_gmt":"2025-03-26T11:03:31","slug":"what-is-the-finance-commission","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/what-is-the-finance-commission\/","title":{"rendered":"What is the Finance Commission?"},"content":{"rendered":"<h2><strong>About Finance Commission:<\/strong><\/h2>\n<ul>\n<li><strong>What is it?<\/strong> It is <strong>constitutional body for giving recommendations on distribution of tax revenues between the Union and the States<\/strong> and amongst the States themselves.<\/li>\n<li><strong>Who constitutes?<\/strong> The Finance Commission is <strong>constituted by the President under article 280<\/strong> of the Constitution.<\/li>\n<li>It is constituted at the <strong>end of every fifth year or earlier<\/strong>, as the deemed necessary by the President.<\/li>\n<li><strong>Parliament may by law determine<\/strong> the requisite qualifications for appointment as members of the Commission and the procedure of their selection. On account of this, The <strong>Finance Commission (Miscellaneous Provisions) Act, 1951<\/strong> was passed.<\/li>\n<li><strong>Mandate<\/strong>: It is the duty of the Commission to <strong>make recommendations<\/strong> to the President as to:<\/li>\n<li>the <strong>distribution between the Union and the States of the net proceeds of taxes<\/strong> which are to be, or may be, divided between them <strong>and the allocation between the States<\/strong> of the respective shares of such proceeds;\u00a0<\/li>\n<li>the <strong>principles which should govern the grants-in-aid<\/strong> of the revenues of the States <strong>out of the Consolidated Fund of India<\/strong>;<\/li>\n<li>the <strong>measures needed to augment the Consolidated Fund of a State<\/strong> to supplement the resources of the <strong>Panchayats and Municipalities<\/strong> in the State on the basis of the recommendations made by the Finance Commission of the State;<\/li>\n<li>any other matter referred to the Commission by the President in the interests of sound finance.<\/li>\n<li><strong>Composition<\/strong>: <strong>It consists of a Chairman and four other members<\/strong> appointed by the President.<\/li>\n<li><strong>Qualifications of members: <\/strong>The <strong>Chairman of the Commission<\/strong> is selected from among <strong>persons who have had experience in public affairs<\/strong> and the <strong>four other members<\/strong> are selected from among persons <strong>who<\/strong><\/li>\n<li>are, or have been, or are <strong>qualified to be appointed as Judges of a High Court<\/strong>; or<\/li>\n<li><strong>have special knowledge of the finances<\/strong> and accounts of Government; or<\/li>\n<li>have had <strong>wide experience in financial matters<\/strong> and in administration; or<\/li>\n<li>have <strong>special knowledge of economics<\/strong><\/li>\n<li><strong>Tenure of members:<\/strong> Every member will be in office <strong>for the time period as specified in the order<\/strong> of the President and is <strong>eligible for reappointment.<\/strong><\/li>\n<li><strong>Recommendations<\/strong> of the Finance Commission <strong>are not binding on the government.<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3>Q1)\u00a0What does article 280 of the constitution say?<\/h3>\n<p>Article 280 of the Indian Constitution lays down the provisions for the creation of a Finance Commission and the powers and duties allotted to it.<\/p>\n<p><strong>Source:<\/strong>\u00a0<a href=\"https:\/\/www.thehindu.com\/news\/national\/process-to-set-up-sixteenth-finance-commission-set-to-kick-off-soon\/article66451389.ece\" target=\"_blank\" rel=\"nofollow noopener\"><u>Process to set up Sixteenth Finance Commission set to kick off soon<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Finance Commission gives recommendations on distribution of tax revenues between the Union and the States.<\/p>\n","protected":false},"author":5,"featured_media":3579,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-3578","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/3578","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=3578"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/3578\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/3579"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=3578"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=3578"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=3578"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}