- As per Article 280 of the Constitution of India the Finance Commission is established.
- It is a quasi-judicial body.
- It consists of a chairman and four other members.
- The President shall after the expiry of every five years by order constitute a finance commission.
- It shall be the duty of the Commission to make recommendation to the President with respect to:
- The distribution between the Union and the States of taxes which are to be divided between them.
- The principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India.
- Dr. Y.V. Reddy, is the chairman of 14th Finance Commission of India