Finance Commission Chairman And functions

List of Finance Commissions of India

Finance Commission: Finance Commission has been arranged in Article 280 of the Indian Constitution. The Finance Commission is constituted by the President, but it can be constituted earlier as per the requirement. It is noteworthy that the work of levying taxes in the country is done by both the Central and the State Governments and the procedure/jurisdiction for levying and collecting taxes is fixed for both.

The central government imposes and collects some such taxes which are apportioned, that is, some part of them goes to the states. The Finance Commission is a constitutional and statutory body under the provisions of Article-280 (1) of the Constitution. The first Finance Commission was constituted on 22 November 1951.

Finance Commission Brief Description:

Name Finance Commission
Establishment 22 November 1951
The headquarters New Delhi
Jurisdiction Indian government
Purpose of establishment To regulate the financial relations between the Central Government and the State Governments of India.
First president Kshitij Chandra Niyogi
Current president NK Singh
Tenure of finance commission 5 year

Election of the Chairman and other members of the Finance Commission:

The Chairman of the Finance Commission should be experienced in public affairs, the remaining four other members will be selected from the following areas:-
  • High Court Judge/person eligible for the post.
  • India's expert on accounts and finance matters.
  • Expert in administration and financial matters.
  • Those who have special knowledge of economics

Functions of Finance Commission:

  • All sharing of taxes and the correct assessment of taxes between the Center and the States.
  • Determination of the amount of aid to be provided to the Center and the States.
  • Determination of regular amount and resources for municipalities, panchayats. This recommendation will be made on the basis of the recommendation of the State Finance Commission.
  • Such tasks as may be sent/determined by the President.

The 14th Finance Commission was constituted by former Reserve Bank Governor Y. Held on 01 January 2013 under the chairmanship of V. Reddy. Who submitted his report to the President. Its recommendations are from 01 April 2015 to 31 March 2020. The Union Cabinet has approved the constitution of the 15th Finance Commission in November 2017. NK Singh has been appointed as the Chairman of the 15th Finance Commission by the Government of India.

The recommendations of the new Finance Commission will be for a period of five years starting from April 01, 2020. The commission will review the current status of finances, deficit, debt levels and fiscal discipline efforts of the central and state governments. It will suggest measures to strengthen the fiscal position. The Finance Commission is a constitutional body, which is constituted every 5 years under Article 280 of the Constitution.

List of Chairmen of Finance Commission:

Finance Commission Name of the chairman Term of office
First Shitij Chandra niyogi 1952 to 1957
Second Kasturiranga Santhanam 1957 to 1962
Third AK Chanda 1962 to 1966
Fourth Pakala Venkataraman Rao Rajamannar 1966 to 1969
Fifth Mahavir tyagi 1969 to 1974
Sixth Brahmananda Reddy 1974 to 1979
Sevent JM Shalit 1979 to 1984
Eighth Y.V. Chavan 1984 to 1989
Ninth NKP Salve 1989 to 1995
Tenth Krishna Chandra Pant 1995 to 2000
Eleventh Dr. Ali Mohammad Khusro 2000 to 2005
Twelfth Chakraborty Rangarajan 2005 to 2010
Thirteenth Vijay.L.Kelkar 2010 to 2015
Fourteenth Dr. Yaga Venugopal Reddy 2015 to 2020
Fifteenth NK Singh 2020 to 2025

Important facts related to Finance Commission:

  • The first chairman of the Finance Commission, K.C. Niyogi was
  • The Finance Commission consists of a chairman and four other chairmen, whose tenure is fixed by a presidential order. They can also be re-appointed.
  • Their eligibility is determined by the Parliament.
  • The Finance Commission gives recommendations for a period of 05 years.
  • The main work of the Finance Commission is to decide the sharing of taxes between the Center and the States.

Frequent Asked Questions (FAQs):

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  Last update :  2022-11-24 12:57:52
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