Finance Commission

  • 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