Course Name: In-depth study of Centre State Relations Lesson Name: Finance Commission Presented by Bhavin Sangoi
About me B.A in Political Science & Psychology Appeared in UPSC CSE Mains Teaching Indian Polity, International Relations, economics &mental Ability since 5 years Experience of teaching for various competitive exams such as NTSE, CET & UPSC Experience of teaching for various competitive exams such as NTSE, CET& UPSC Rate,review and Recommend Follow me on: https://Unacademy.in/user/BhavinSangoi
Finance Commission According to article 280, President shall constitute Finance Commission at every Five year or earlier, which shall consists of one chairman and four other members whose qualification shall be determined by Parliament by law
Finance Commission act 1951 The Chairman of the Commission shall be selected from among persons who have had experience in public affairs, and the four other members shall be selected from among persons Who are, or have been, or are qualified to be appointed as Judges of a High Court; or
Continued Who have special knowledge of the finances and accounts of Government; or Who have had wide experience in financial matters and in administration; or Who have special knowledge of economics
Duty of recommendation The distribution of net proceeds of taxes to be shared between the Centre and States, and the allocation between States of the respective shares of such proceeds The principles which should govern the grants-in-aid to the of the revenues of the States out of the Consolidated fund of India
Principles for grants The First Commission had laid down five broad principles for determining the eligibility of a State for grants Size of the Budget of a State The efforts made by States to realize the potential The grants should help in equalizing the standards of basic services across States
Continued Any special burden or obligations of national concern, though within the State's sphere, should also be taken into account. Grants might be given to further any beneficent service of national interest to less advanced States.
Aid to Local government 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 Finance Commission of the State Any other matter to the Commission by the President in the interest of the sound finance
According to article 281, the President shall lay recommendations of the Finance Commission together with an action taken report before each House of Parliament
BA Political Science and Psychology, Mumbai University. Teaching Polity, Economics and international relations for 7 years.