The Finance Commission (vitta aayog) is an Indian government body that oversees the financial
relations between the central and the state governments.
The
commission, comprising a chairman and four members, is appointed
for every five years. The Finance Commission Act, of 1951 defines the terms of
qualification, appointment and disqualification, as the term, eligibility and
powers of the Finance Commission.
commission, comprising a chairman and four members, is appointed
for every five years. The Finance Commission Act, of 1951 defines the terms of
qualification, appointment and disqualification, as the term, eligibility and
powers of the Finance Commission.
The
Finance Commission was established under Article 280 of the Indian Constitution
and acts as a balancing power between the Individual State and Central
Governments. The scope of the commission is also mentioned in the same Article
280.
Finance Commission was established under Article 280 of the Indian Constitution
and acts as a balancing power between the Individual State and Central
Governments. The scope of the commission is also mentioned in the same Article
280.
The
finance commission is responsible for the distribution of net proceeds of taxes
between the Center and the States, which is made based on the respective
contributions of the States to the taxes. It says that the greater the tax paid by
a State, the greater the share from the net proceeds of taxes.
finance commission is responsible for the distribution of net proceeds of taxes
between the Center and the States, which is made based on the respective
contributions of the States to the taxes. It says that the greater the tax paid by
a State, the greater the share from the net proceeds of taxes.
In
addition, it determines the factors governing grants made to the states in the
form of aid and also fixes the amount given in the form of aid by the centre
to the state governments.
addition, it determines the factors governing grants made to the states in the
form of aid and also fixes the amount given in the form of aid by the centre
to the state governments.
The
Commission is responsible of making recommendations to the president as to the
measures that are needed to augment the Fund of a State to supplement the
resources of the Panchayats and Municipalities.
Commission is responsible of making recommendations to the president as to the
measures that are needed to augment the Fund of a State to supplement the
resources of the Panchayats and Municipalities.
