Finance Commission

Finance Commission:

-The Finance Commission of India came into existence in 1951.

-It was established under Article 280 of the Indian Constitution by the President of India.

-It was formed to define the financial relations between the centre and the state.

-The commission is appointed every five years and consists of a chairman and four other members.

-Recommendation made by the finance Commission are only of advisory nature and not binding on the Govt.

-Till date, Thirteen Finance Commissions have submitted their reports.

-Qualifications of the members:

The Chairman of the Finance Commission is selected among people who have had the experience of public affairs. The other four other members are selected from people who:

*Are, or have been, or are qualified, as judges of High Court, or
*Have knowledge of Government finances or accounts, or
*Have had experience in administration and financial expertise; or
*Have special knowledge of economics