Table of Contents
- 1 What is meant by Finance Commission?
- 2 What is the role of finance commission?
- 3 Who are the members of Finance Commission?
- 4 Who appoints the Finance Commission?
- 5 What is another name for Finance Commission?
- 6 What is a financial grant?
- 7 What are the functions of the Finance Commission?
- 8 How often does the Finance Commission of India meet?
What is meant by Finance Commission?
Finance Commission of India: The Finance Commission is a constitutional body, that determines the method and formula for distributing the tax proceeds between the Centre and states, and among the states as per the constitutional arrangement and present requirements.
What is the role of finance commission?
Finance Commission is a constitutional body for the purpose of allocation of certain revenue resources between the Union and the State Governments. It was established under Article 280 of the Indian Constitution by the Indian President. It was created to define the financial relations between the Centre and the states.
What is the current finance commission?
The Fifteenth Finance Commission (XV-FC or 15-FC) is an Indian Finance Commission constituted in November 2017 and is to give recommendations for devolution of taxes and other fiscal matters for five fiscal years, commencing 2020-04-01.
What is Finance Commission and other transfers?
The Finance Commission also decides the share of each state from the share of states in the divisible pool. The Commission further recommends the share of funds and grants to be transferred to local bodies. In the Union Budget, these transfers are called ‘Finance Commission Grants’ and ‘Other Transfers’.
Who are the members of Finance Commission?
Finance Commission
- N. K. Singh, IAS, (Chairman)
- Ajay Narayan Jha, IAS, (Member)
- Prof. Anoop Singh, (Member)
- Ashok Lahiri, (full time Member)
- Prof. Ramesh Chand, (part time Member)
- Arvind Mehta, IAS, (Secretary)
Who appoints the Finance Commission?
the President
The Finance Commission is constituted by the President under article 280 of the Constitution, mainly to give its recommendations on distribution of tax revenues between the Union and the States and amongst the States themselves.
Who are the members of finance commission?
What is income distance in finance commission?
Income Distance: The Income distance criteria is the difference between per-capita income of a particular state and state with the highest per-capita income. If the income distance is larger, it would mean that a particular state is poorer and hence it would get higher share of taxes.
What is another name for Finance Commission?
The Finance Commissions (IAST: Vitta Āyoga) are commissions periodically constituted by the President of India under Article 280 of the Indian Constitution to define the financial relations between the central government of India and the individual state governments.
What is a financial grant?
A grant is a quantity of money, i.e., financial assistance, given by a government, organization, or person for a specific purpose. Unlike a loan, you do not have to pay back the money. The government may also award grants for home insulation, community projects, or setting up businesses.
Who can remove member of Finance Commission?
Subject to the provisions of clause (3), the Chairman or any other member of a Public Service Commission shall only be removed from his office by order of the President on the ground of misbehaviour after the Supreme Court, on reference being made to it by the President, has, on inquiry held in accordance with the …
What does State Finance Commission in India mean?
State Finance Commission meaning: The Indian Constitution makers envisioned a two-tier democratic system with a strong federal government at the centre and states as its units.
What are the functions of the Finance Commission?
Any other matter referred to it by the president in the interests of sound finance. The Commission decides the basis for sharing the divisible taxes by the centre and the states and the principles that govern the grants-in-aid to the states every five years.
How often does the Finance Commission of India meet?
President after two years of the commencement of Indian Constitution and thereafter every 5 years, has to constitute a Finance Commission of India.
Who is required to form State Finance Commission?
Under Article 243-I of the Constitution of India, the governor of a state is required to constitute a Finance Commission every five years. Wondering why? This is in order to decide the resource allocation between the state government and the Panchayati Raj Institutions.