is a brief information about finance commission for students who need such information to prepare for their examinations

1. BUSINESS ENVIRONMENT
PRESENTATION ON
FINANCE COMMISSION OF INDIA

2. FINANCE COMMISSION OF INDIA
AGENCY OVER VIEW
• Formed 22 nov 1951
• Jurisdiction Government of India
• Headquarters New Delhi
• Agency Executives Dr. Y. V. Reddy, Chairman
• Members Dr. M. Govindha Rao
Sushmanath
Prof Abhijith Sen
Ajay Narayan Jha,
Secretery.

3. FINANCE COMMISSION
• The Finance Commission of India came into existence in
1951.
• It was established under Article 280 of the indian
constitution by the president of India.
• It was formed to define the financial relation b/w the
centre and the state.
• The finance commission Act of 1951 states the terms of
qualification, appointment and disqualification, the term,
Eligibility and powers of the finance commission.
• As per the constitution, the commission is appointed
every 5 Years and consists of a chairman and 4 other
members.

4. HISTORY
• Genesis of the Finance Commission
• The Indian state like all other federations, is also
ridden by the problems of verticle and Horizontal
Imbalances.
• Dr, Br. Ambedkar, The incombent law minister,
established the finance commission of India.
• Factors like historical backgrounds, differences in
resource endowments etc.
• Dr. Ambedker has made several provisions to
bridge the gap of finances b/w the centre and
state.
• The indian constitution provides an institutional
framework to facilitate centre-state transfers.

5. FUNCTIONS
Functions of the Finance commission
can explicitly stated as:
• Distribution of net proceeds of taxes b/w
Centre and States, to be divided as per their
respective contributions to the taxes.
• Determine factors governing grants-in Aid to
the States and the magnitude of the same.

6. THE FINANCE COMMISSION ACT, 1951.
(MISCELLANEOUS PROVISIONS)
The finance commission Act, 1951 was
passed. It lays down rules regarding Qualification
and Disqualification of members of the
commission, their appointment, term, eligibility
and powers.
• Qualification of the members
• Procedure and powers of the commission
• Disqualification from being a member of the
commission
• Terms of office members and eligibility for
reappointment
• salaries and allowances of the members.

7. Qualification of the members :
The Chairman of the finance
commission is selected among people who
have had the experience of public affairs.
• Are, or have been, or are qualified, as judges
of high court.
• Have knowledge of government finances or
accounts, or
• Have had experience in administration and
financial expertise, or
• Have special knowledge of economics.

8. • Procedure and powers of the commission:
The commission has the powers determine
their own procedure.
• Has all powers of the civil court as per the court
procedure, 1908.
• Can summon and enforce the attendance of any
witness or ask any person to deliver information or
produce a document, which it deems relevant.
• Can ask for the production of any public record or
document from any court or office.
• Shall we deemed to be a civil court for purposes of
sections 480 and 482 of the code of criminal
procedure, 1898.

9. Disqualification from being a member of the
commission:
A member may be disqualified if;
• He is mentally unsound.
• He is an undischarged insolvent.
Terms of office of members and eligibility for
Reappointment:
Every member will be in office for the
time period as specified in the order of the
president, but is eligible for reappointment
provided he has, by means of a letter addressed
to the president, resigned his office.

10. Salaries and allowances of the members:
• The members of the commission shall provide
full-time or part-time service to the
commission, as the president specifies in his
order.
• The member shall be paid salaries and
allowances as per the provisions made by
central government.
• So far 13 finance commission have submitted
their recommendations.
• More or less, all of them have been accepted
by the Union Government.

11. Finance commissions appointed so far
so far 14 finance commissions have been appointed
which are as follows
Fin comY Est Chairman's Duration
1 1951 K.C.Neogy 1952-57
2 1956 k.Santhanam 1957-62
3 1960 AK.Chandra 1962-66
4 1964 PV.Rajamannar 1966-69
5 1968 Mahaveer Tyagi 1969-74
6 1972 k.BrahmanandaR 1974-79