The finance commission is a statutory body that was formed to establish financial relations between the centre and the states. The finance commission came into existence in the year 1951. Article 280, of the Indian constitution states the composition, functions and the role of the finance commission. According to article 280, the finance commission consists of a chairman and four other members appointed by the President. The members and the chairman can be re-appointed. The constitution allows the Parliament to make provisions related to qualification, conditions of service and so on.
The finance commission was established by Dr B.R. Ambedkar in the year 1951. The finance commission is constituted every five years and consists of 5 members. The primary function of the finance commission is to allocate funds between the centre and the state government. It mainly balances the powers and resources between the state and the centre. This is the reason the makers of the constitution have drafted article 280 very carefully and have laid the structural format of the commission. Till date, 14 finance commissions have submitted their reports.
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Article 280 of the Indian constitution states:
SEE ALSO: Planning Commission: Members, Functions, and Five Year Plan
The finance commission act was introduced in order to give a structure to the finance commission. The finance commission act lays certain rules on the qualifications of the members of the finance commission, how they will be appointed, the term of appointment and their power along with salaries and allowances.
Some of the most important functions of the finance commission are as follows:
|
Year of Establishment |
Chairman |
Operational Term |
First |
1951 |
K.C Neogy |
1952-57 |
Second |
1956 |
K. Santhanam |
1957-62 |
Third |
1960 |
A.K. Chanda |
1962-66 |
Fourth |
1964 |
P.V. Rajamannar |
1966-69 |
Fifth |
1968 |
Mahaveer Tyagi |
1969-74 |
Sixth |
1972 |
K. Brahmananda Reddy |
1974-79 |
Seventh |
1977 |
J.M. Shelat |
1979-84 |
Eighth |
1983 |
Y.B. Chavan |
1984-89 |
Ninth |
1987 |
N.K.P. Salve |
1989-95 |
Tenth |
1992 |
K.C. Pant |
1995-2000 |
Eleventh |
1998 |
A.M. Khusro |
2000-2005 |
Twelfth |
2002 |
C.Rangarajan |
2005-2010 |
Thirteenth |
2007 |
Dr Vijay L Kelkar |
2010-2015 |
Fourteenth |
2013 |
Dr Y.V. Reddy |
2015-2020 |
fifteenth |
2017 |
N.K. Singh |
2020-2025 |
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