Finance Commission
- The president of India constitutes a Finance Commission once in every five years.
- Article 280 of the Constitution describes the composition of the Finance Commission.
- It will have one Chairman and four other members.
- The Chairman will be a person with experience in public affairs and the members will have experience in financial administration, special knowledge of economics, special knowledge of public accounts and government finances, and one member will have the qualification of a High Court judge.
Finance Commission will provide recommendations in the following manner:
- For the distribution of net proceeds of taxes between the Centre and States
- Principles governing grants-in-aid
- Measures needed to increase the Consolidated Fund of India or States to supplement the resources of the Panchayat Bodies
- Measures needed to increase the Consolidated Fund of India or States to supplement the resources of the Urban Local Bodies
- Any other matter referred by the president So far fourteen Finance Commissions have been constituted once in every five years