Finance Commission of India

The Finance Commission of India established under Article 280 of the Indian Constitution  by the President of India in 1951was formed to define the financial relations between the Centre and the State.

The Finance Commission Act of 1951 states the terms of qualification, appointment and disqualification, the term, eligibility and powers of the Finance Commission. 

As per the Constitution, the Finance Commission is appointed every 5 Years and consists of a Chairman and 4 other members.

Functions of the Finance Commission -

• Distribution of net proceeds of taxes between Centre and the States, to be divided as per their respective contributions to the taxes.

• Determine factors governing Grants-in Aid to the states and the magnitude of the same.

• Work with the State Finance Commissions and suggest measures to augment the Consolidated Fund of the States so as to provide additional resources to Panchayats and Municipalities in the state.

Finance Commissions so far

Finance Commission	Established in	Chairman	Period
1	1951	K.C Neogy	1952-57
2	1956	K.Santhanam	1957-62
3	1960	A.K. Chanda	1962-66
4	1964	P.V. Rajamannarr	1966-69
5	1968	Mahaveer Tyagi	1969-74
6	1972	K. Brahmananda Reddy	1974-79
7	1977	J.M. Shellet	1979-84
8	1983	Y B Chavan	1984-89
9	1987	N K P Salve	1989-95
10	1992	K.C Pant	1995-2000
11	1998	A.M.Khusro	2000-2005
12	2003	C.Rangarajan	2005-2010
13	2007	Vijay Kelkar	2010-2015
14
15