OpenGuide-Article 280 of the Constitution of  India provides for a Finance Commission as a Quaci-Judicial Body.The main task of the Finance Commission is to determine how to divide the revenue between Centre and States.The study on Finance Commission is very important for the exams of UPSC Civil service Exam,Kerala PSc,Staff Selection Commission,Railway Recruitment Board exam etc.Its chairpersons since its inception are very important for all the competitive exams.Given below is the  short summary of Finance Commission and its related details.

Article 280 of the Constitution of India provides for a Finance Commission as a quaci-Judicial body.

Article 281 -Recommendations of the Finance Commission

Composition

1)The Finance Commission consists of a chairman and four other members to be appointed by the President.

2)The chairman should be a person having experiance in public affairs and the four other members should be selected from amongst the following:

(i) A judge of High Court or one qualified to be appointed as one.

(ii) A person who has specialised knowledge of finance and accounts of the government.

(iii) A person who has wide experiance in financial matters and in administration.

(iv) A person who has special knowledge of Economics.

Functions of the Finance Commission

1) The distribution of the net proceeds of taxes to be shared between the centre and the states,and the allocation between the states of the respective shares of such proceeds.

2) The principles that should govern the grants-in-aid to the states by the centre( i e out of the consolidated fund of India)

3) The measures needed to augment the consolidated fund of a state to supplement the resources of the panchayats and the muncipalities in the state on the basis of the recommendations made by the state finance commission.

4) Any other matter referred to it by the President in the interests of sound finance. He submits it to the President.He lays it before both the houses of Parliament.The suggestions of the Finance Commission is not binding upon the Government of India.

Finance Commissions till date