Finance commission of india

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finance commission of india

Finance commission is constitutional body  . It is mentioned on article 280 of the constitution of india  that a finance commission should be for the suggesting and assisting of finance related query . It works as quasi judicial (half judicial).and its constituted by the President of India for fifth year and can be more than five year ,its depend of President of india .

Composion (Structure)
The finance commission consists of chairman and four other member to be appointed by The President .They hold office for a such period as a specified by the president in his order .They are eligible for reappoint . 
Constitution authorises the parliament to determine qualification of member of commission and in which they should be selected. 
The chairman should be a person having experience in public affairs and four other member should be from amongst the following :
A. A judge of high court 
B. A person who have specialised knowledge of finance and accounts of the government .
C. A person who has special knowledge of economics .
D. A person who has experienced in financial matter and in administration.

Function
Finance Commission is required to make recommendation to the president of india .On the following matter :
1.Distribution of the net proceeds of taxes to be share between centrs and states 
2. Principles that should govern the grand -in- aid to the states by the centre (consolidated fund of india 
3.  Any other matter referred to it by the president of india in the of sound finance .

Advisory role 
It must be clarified here that that recommendation made by finance commission are only advisory nature and hence, not binding on government .it is up to union government to implement its recommendation on granting money to the states.


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