Finance Commission India

The Finance Commission India was officially structured and implemented as per the provisions of the Acts and Rules in the year 1951. The President of India selects the commissioner and the four other members of the Finance Commission India. Further, the President of India assigns the term of their office and their responsibilities. The commissioner and the four members of the Finance Commission India are answerable for their act of commission and omission, directly to the President of India.

India Finance Commission Act Eighth Finance Commission Eleventh Finance Commission Fifth Finance Commission Historical Perspective of Finance Commission India Ninth Finance Commission India Finance Commission Rules Seventh Finance Commission Sixth Finance Commission Tenth Finance Commission Thirteenth Finance Commission Twelfth Finance Commission Financial Institutions in India State Finance Commissions Constitutional Provisions of Finance Commission India

The process of selection of Finance Commission India -

• The President of India shall, within maximum of two years from the commencement of the draft and thereafter completion of every fifth year or at earlier time (as he deems necessary), by order should constitute a Finance Commission
• The Finance Commission shall consist of a chairman and four other members, appointed by the President himself
• The elected parliament may by formulating appropriate law determine the qualifications of such members of the Finance Commission and it may also determine the manner in which the members shall be selected

The Qualification of the commissioner and other members of the Finance Commission India -

The Chairman shall be a person with experience in public affairs, and the four other members shall be selected from among persons who--

• Have been, or are qualified to be appointed as Judges of a High Court or
• Have special knowledge of the finances and accounts of Government or
• Have wide experience in financial matters and in administration or
• Have special knowledge of economics

Disqualifications of a member of the Commission shall be on the following grounds -

• Unsound mind
• Undischarged debts
• Convicted of an offense involving moral turpitude
• Financial or other interest as is likely to be prejudicial to his functions

The duties of the Finance Commission India -

The duty of the Finance Commission shall entail recommendations to the President of India on -

• Distribution of the income of the government (including central and state governments) as per proportion or according to the contribution made towards such collection of revenues by each such state governments or central government
• Define the grounds on which the government should allocate the grants-in-aid of the revenues of the Indian states out of the consolidated fund of India. The quantum of allocation of such funds needs to compliment the requirements of the Municipalities in the State and the resources of the Finance Commission of the State.
• Any other matter referred to the Commission by the President in the interests of sound finance
• The Finance Commission of India shall also determine the operational process and is vested with such powers in the operation as per the provisions enacted by the parliament of India