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Functions and Responsibilities
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- One of the primary functions of the Commission is to recommend the distribution of tax proceeds between the Central and State Governments.
- Grants and aid provided by the Centre to the State Governments from the Consolidated Fund of India.
- Taking appropriate steps to increase the Consolidated Fund of the States.
- Providing financial advice to the President.
- The Finance Commission submits its financial report to the President.
- According to Article 280 of the Indian Constitution, the President of India creates the Finance Commissions regularly to establish the financial ties between the national government of India and the various state governments.
- The commission, which has a chairperson and four additional members, is established under the constitution and appointed every five years.
- A finance committee chooses its chairman from among those having a background in public affairs. The remaining four members are chosen from among those who:
- Are, or have been, or are qualified to serve as judges of a high court;
- have an accounting or financial understanding of the government;
- have experience in administration and finance;
- or have specialized economic knowledge.
- Now the 15th Finance Commission has been appointed. Nand Kishore Singh was appointed to serve as the chairman of the commission.
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