TNPSC Free Notes Economy In English-Finance commission

இந்தக் கட்டுரையில், TNPSC குரூப் 1, குரூப் 2, குரூப் 2A, குரூப் 4 மாநிலப் போட்டித் தேர்வுகளான TNUSRB, TRB, TET, TNEB போன்றவற்றுக்கான  முறைகள் இலவசக் குறிப்புகளைப் பெறுவீர்கள்.தேர்வுக்கு தயாராவோர் இங்குள்ள பாடக்குறிப்புகளை படித்து பயன்பெற வாழ்த்துகிறோம்.

Finance commission

Finance commission
 Finance commission is a quasi-judicial body set up under Article 280 of the Indian
Constitution. It was established in the year 1951, to define the fiscal relationship
framework between the Centre and the State.
 Finance Commission aims to reduce the fiscal imbalances between the Centre and the
States (Vertical imbalance) and also between the States (horizontal imbalance). It
promotes inclusiveness.
 A Finance Commission is set up once in every 5 years. It is normally constituted two
years before the period. It is a temporary Body.
 The 14 th Finance Commission was set up in 2013. Its recommendations were valid for the
period from 1 st April 2015 to 31 st March 2020.
 The 15 th Finance Commission has been set up in November 2017. Its recommendations
will be implemented starting 1 April 2020.

Finance
Commission

Year of
establishment

Chairman Operational
duration

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 2000–05
Twelfth 2002 C. Rangarajan 2005–10
Thirteenth 2007 Dr. Vijay L. Kelkar 2010–15
Fourteenth 2013 Dr. Y. V Reddy 2015–20
Fifteenth 2017 N. K. Singh 2020–25
Structure of Finance Commission

Functions of Finance Commission of India
 Article 280 (3) speaks about the functions of the Finance Commission. The Article
states that it shall be the duty of the Commission to make the recommendations
to the President as to:
 The distribution between the Union and the States of the net proceeds of taxes,
which may be divided between them and the allocation among the states of the
respective shares of such proceeds;
 To determine the quantum of grants-in-aid to be given by the Centre to states
[Article 275 (1)] and to evolve the principles governing the eligibility of the state
for such grant-in-aid;
 Any other matter referred to the Commission by the President of India in the interest of
sound finance. Several issues like debt relief, financing of calamity relief of states,
additional excise duties, etc. have been referred to the Commission invoking this clause.
Finance Commission Chairman and Members
 Chairman: Heads the Commission and presides over the activities. He should have had
public affairs experience.

 Four Members.
 The Parliament determines legally the qualifications of the members of the Commission
and their selection methods.

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