Constitutional Provisions of Finance Commission India

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Several factors coincidentally converged and necessitated for the constitutional provisions of finance commission India. The British rulers felt the need for the constitutional provisions of finance commission India during the late 1660. The trade and commerce of the British ruler started to grow during this period and the threats from the other European business rivals like the Dutch, Portuguese and the French grew stronger. Further, the local Indian rulers also craved for more territorial power. The basic structure of the constitutional provisions of finance commission India was drafted to ward-off these eminent dangers and consolidate its dominance in India.

Background of the Constitutional Provisions of Finance Commission India

A defined frame of constitutional provisions of finance commission India was drafted during the early 1920s. This was drafted with the main motto of maximum exploitation of business opportunity for the British ruler. Further, the British ruler also employed the policy of favoritism towards local Indian rulers to create a wedge of communal difference amongst the dominant religions of India. This was done to create communal unrest and breed diversity, so that the British rule can perpetuate its dominance in India. The provision for the basic constitution of the finance commission of India was a hollow structure and thus it drew flak from different freedom fighters of India. This led to the forming of a commission to look into the drawback of the drafted provision of the constitution of finance commission of India.

The latest constitutional provisions 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 duty of the Finance Commission shall entail recommendations to the President of India on -
    • Distribution of the income of the government (including central and provisions governments) as per proportion or according to the contribution made towards such collection of revenues by each such provisions governments or central government

    • Define the grounds on which the government should allocate the grants-in-aid of the revenues of the Indian provisionss out of the consolidated fund of India. The quantum of allocation of such funds need to compliment the requirements of the panchayat and resource of the Consolidated Fund of a provisions

    • The quantum of allocation of such funds need to compliment the requirements of the Municipalities in the provisions and the resources of the Finance Commission of the provisions

    • 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

For further information on constitutional provisions of finance commission India please visit the following sites

  • Duties levied by the Union but collected and appropriated by the States
  • Taxes levied and collected by the Union and distributed between the Union and the States
  • Grants from the Union to certain States