The Finance Commission of India was established in 1951 in accordance with Article 280 of the lndian Constitution. It is formed to determine the financial relationship between the center and the states. According to the constitution, the commission consists of a chairman and four other members every five years. •
- Website: fincomindia.nic.in
- Established: 22 November 1951
- Purpose: Maintain financial relations between the center and the state
- Jurisdiction: Government of India
- Headquarters: New Delhi
- First executive: Kshitish Chandra Neogy
Important Points to Remember: Finance Commission of India
01. In 2013 the Fourteenth Finance Commission was formed under the presidency of Y. V. Reddy (whose term lasted from 2015 to 2020).
02. At present (2021), the 15th Finance Commission has been constituted under the chairmanship of Nanda Kishor Singh, whose term started in 2020.
Functions of Finance Commission of India
01. According to the contribution of taxes of states to the central government, the finance government distributes ‘net proceeds‘ of taxes between the Center and the States.
02. The Finance Commission acts as the institutional framework for determining the financial relationship i.e, the Center-State relationship.