THE FINANCE COMMISSION OF INDIA

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Article 280: Finance commission

        Finance commission of India is a constitutional body which is constituted by POI for every 5 years or early. FCI consists of Chairman and 4 other members.

        The chairman of FCI should have the knowledge of public affairs. One member should have all the qualification of judge of HC, second member should be expert in economics, third member should be expert in financial administration and fourth member must be auditor and account.

 

Functions of FCI:

1)   Finance commission of India makes recommendations regarding the division of revenues between center and state.

2)   FCI makes recommendations regarding grant in aid to the states under article 275 from the consolidated fund of India.

3)   It also makes recommendations with respect to allocation of resources to local governments under 73^rd, 74^th amendments.

4)   It also gives suggestions or advice to POI on all financial matters which are referred to it.

All the functions of FCI are advisory in nature that means center may accept or may not accept. It acts as a buffer between center and state governments.

So far 14 Finance Commissions have been appointed which are as follows:

FC	Year of Establishment	Chairman	Operational Duration
1st	1951	K. C. Neogy	1952–57
2nd	1956	K. Santhanam	1957–62
3rd	1960	A. K. Chanda	1962–66
4th	1964	P. V. Rajamannar	1966–69
5th	1968	Mahaveer Tyagi	1969–74
6th	1972	K. Brahmananda Reddy	1974–79
7th	1977	J. M. Shelat	1979–84
8th	1983	Y. B. Chavan	1984–89
9th	1987	N. K. P. Salve	1989–95
10th	1992	K. C. Pant	1995–2000
11th	1998	A. M. Khusro	2000–2005
12th	2002	C. Rangarajan	2005–2010
13th	2007	Dr. Vijay L. Kelkar	2010–2015
14th	2013	Dr. Y. V Reddy	2015–2020

Article 281: Recommendations of the finance commission

        Finance commission of India submits its report or recommendations to POI under article 281.