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Finance Commission (Doubt Destroyer).
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Learn Everything about the Finance Commission.

Rahul Agrawal is teaching live on Unacademy Plus

Rahul Agrawal
The Ultimate Doubt Destroyer on Unacademy. One of the Top Educator on the Unacademy platform. Famous for Doubt destroyer series.

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Sir this level very high campair to previous exam 2007and2011please see and simple questionका प्रैक्टिस कराओ
K C Neogy was chairman of 1st Finance Commission (1951 to 1956)
please take the parliamentary committees sir thanks.
please take the parliamentary committees sir thanks.
14 th finance commission chairman KC venugopal
sorry sir Dr.yv reddy is 14 FC chairman
  1. Constitutional bodies for UPSE CSE PRELIMS: 2018 -By Rahul Agrawal


  2. Finance Commission R. AGRAWAL


  3. Constitutional body- article 280 Also a quasi judicial body Constituted by president of India every (5th year) R. AGRAWAL


  4. Composition of Finance Commission: The Constitution provides that Finance Commission shall consist of a Chairman and four other members to be appointed by President. " They are eligible for reappointment. The Constitution authorizes Parliament to make provisions related to qualifications, conditions of service of members or powers of Finance Commission. So Parliament enacted Finance Commission Act in 1951 to determine provisions related to qualifications or disqualifications, conditions of service or miscellaneous powers to perform functions provided under constitution. R. AGRAWAL


  5. Qualifications: " The Chairman shall have vast experience in Public affairs Other four members shall be selected among persons Who a) have qualifications as par with a judge of HC, b) has special knowledge of Finance and Accounts of govt, c) have vast experience in financial matters d) have special knowledge of economics. R. AGRAWAL


  6. The Union Cabinet has approved the setting up of the 15th Finance Commission. Article 280(1) of the Constitution lays down that a Finance Commission (FC) should be constituted "...within two years from the commencement of this Constitution and thereafter at the expiration of every fifth year or at such earlier time as the President considers necessary...".In keeping with this requirement, the practice has generally been to set up next Finance Commission within five years of the date of setting up of the previous Finance Commission. The Centre also announced that the Fifteenth Finance Commission would be headed by former Secretary to the government of India N.K. Singh The panel, will make recommendations for the five years beginning April 1, 2020, The other members of the commission, are former economic affairs secretary Shaktikanta Das and former chief economic adviser Ashok Lahiri, Niti Aayog member Ramesh Chand and Georgetown University professor Anoop Singh R.AGRAWAL


  7. Functions: The Finance Commission is required to make recommendations to the president of India on the following matters: The distribution of the net proceeds of taxes to be shared between the Centre and the states, and the allocation between the states of the respective shares of such proceeds. The principles that should govern the grants-in-aid to the states by the Centre (i.e., out of the consolidated fund of India) - The measures needed to augment the consolidated fund of a state to supplement the resources of the panchayats and the municipalities in the state on the basis of the recommendations made by the state finance commission. Any other matter referred to it by the president in the interests of sound finance. - R. AGRAWAL


  8. Short & crisp- FINANCE COMMISSION R. AGRAWAL


  9. Established on 22nd November 1951. Formed to describe the financial relations between centre & state. The recommendations of the Commission together with an explanatory memorandum as to the action taken by the Government on them are laid before each house of Parliament. The Commission has to assess the increase in the Consolidated Fund of a state to affix the resources of the Panchayat in the state. The Commission has been given passable powers to perform its function and within its area of activity. It has all the powers of the Civil Court as per the Code of Civil Procedure, 1908. It can call any witness, or can ask for the production of any public record or document from any court or office. It can ask any person to give information or document on matters as it may feel to be useful or relevant. It can function as a civi R. AGRAWAL court in discharging its duties.


  10. Advisory Role The recommendations made by the Finance Commission are only of advisory nature and hence, not binding on the government. It is up to the Union government to implement its recommendations on granting money to the states. It is nowhere laid down in the Constitution that the recommendations of the commission shall be binding upon the Government of India or that it would give rise to a legal right in favour of the beneficiary states to receive the money recommended to be offered to them by the Commission. R. AGRAWAL


  11. Comptroller and auditor general of India (CAG R. AGRAWAL


  12. Constitutional body - Article 148 CAG shall be the most important offices under the constitution of India Dr. B.R. Ambedkar R. AGRAWAL


  13. CAG Audits the receipts & expenditures of: 1) All bodies & authorities substantially financed from central/state revenues 2) Government companies 3) Other corporation & bodies R. AGRAWAL


  14. Art. 151: >The reports of the Comptroller and Auditor-General of India relating to the accounts of the Union shall be submitted to the president, who shall cause them to be laid before each House of Parliament. The reports of the Comptroller and Auditor-General of India relating to the accounts of a State shall be submitted to the Governor of the State, who shall cause them to be laid before the Legislature of the State. R. AGRAWAL


  15. Types of Audit performed by CAG Regulatory Audit: It is an audit to ascertain whether the moneys spent were authorised for the purpose for which they were spent and also that the d was in conformity with the I Supplementary Audit: CAG takes up supplementary audits in PSUs, even after the commercial audits are done by the auditors appointed by the CAG, for detection of leakages. Propriety Audit: It focuses on whether the expenditure made is in public interest or not i.e. it moves beyond mere scrutiny of expenditure to question its wisdom and economy in order to identify cases of improper expenditure and waste of public money. R. AGRAWAL


  16. Tvpes of Audit performed by CAG Efficiency Audit: Efficiency audit as the name suggests answers the question whether the money invested yields optimum results. The main purpose of the efficiency audit is to ensure that the investment is prioritized and channeled into its most profitable utilization. Performance Audit: Performance audit answers whether the government programmes such as NREGA have achieved the desired objectives at the lowest cost and given the intended benefits. It generally does not get into the merits-demerits of a particular policy/scheme rather looks into the effectiveness with which the scheme is implemented and any deficiencies thereof. Environmental Audit: This is a relatively new area of concern for the CAG keeping in mind the challenges facing India with respect to conservation and management of the environment. More than 100 audits on environmental issues like bio-diversity, pollution of rivers, waste management have been conducted by the CAG to identify critical issues anL suggest possible solutions by involving all stakeholders.


  17. Thanks Rate, review, recommend. Comment your queries. Share the lesson as much as you can. Contribute if you want to. Follow me :- https://unacademy.Com/user/rahulagrawal R. AGRAWAL