Finance Commission of India | Notes
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The Finance Commission of India is a constitutional body established under Article 280 of
the Indian Constitution.
Its main purpose is to recommend how financial resources should be distributed between
the Union Government and State Governments.
Background
● The idea of the Finance Commission came to ensure financial stability and
cooperative federalism in India.
● It was established on 22 November 1951.
Constitutional Provisions
● Article 280 (1): Empowers the President to constitute the Finance Commission every
five years.
● It may also be constituted earlier if required.
Composition
The Finance Commission consists of:
Position Role
Chairperson Heads the Commission
Four Members Assist in recommendations
The Finance Commission of India is a constitutional body established under Article 280 of
the Indian Constitution.
Its main purpose is to recommend how financial resources should be distributed between
the Union Government and State Governments.
Background
● The idea of the Finance Commission came to ensure financial stability and
cooperative federalism in India.
● It was established on 22 November 1951.
Constitutional Provisions
● Article 280 (1): Empowers the President to constitute the Finance Commission every
five years.
● It may also be constituted earlier if required.
Composition
The Finance Commission consists of:
Position Role
Chairperson Heads the Commission
Four Members Assist in recommendations
