|Article -280||· Quasi-judicial body after in India
· Instituted by President of India every fifth year or at earlier time as a required
|Finance Commission Composition||Consist a chairman + 4 other members – Tenure by POI/ Reappointment eligible.
Chairman experience in public affairs
1. A judge of high court or one qualified to be appointed as one.
2. Specialised knowledge of finance & account of govt.
3. Special knowledge of economics
4. Wide experience in administration & Financial matters.
|Functions||To make recommendation to POI, on following matters-
1. Tax allocation & distribution of tax b/w center & state 29% – 12 FC, 32- 13th FC, 14% = 42%
2. Principle that should grant in aid.
1) Fiscal Capacity – 50%
2) Population – 17.5% (till 13th) and
3) Area – 15%
3. Measure needed to augment the CF of state to supplement.
|Advisory Role||· Recommendation made by the financial commissions are only of advisory nature – therefore not binding on the government.
· Constitution envisages financial commission as a balancing wheel of fiscal federalism – till 2014 the Centre state fiscal relations was undermined by the planning commission (non-constitutional and non-statutory body)
· In 2015 planning commission was replaced by NITI Aayog – National Institute For Transforming India
Get all essential Crux notes by clicking here https://diademy.com/product/staticcrux/