Finance commission

1. Finance Commission Rajan kumar gupta Md nazim khan Tanmaya kundu Bhaskar Md. Nausad alam

2. About F inance 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. This has led to major changes in the Finance Commission’s recommendations over the years. Till date, Thirteen Finance Commissions have submitted their reports.

3. As per the Constitution, the commission is appointed every five years. It consists of a chairman and four other members.

4. GENERAL GUIDELINES The Finance Commission is being set-up every five years by Government of India to discharge the mandate laid down in articles 280 of the constitution to perform the main task of allocation of the total funds which have been collected b y the Central Govt. Article 280 of the constitution relates to the allocation of the expenses by the Central G ovt.

5. Why was finance commission established The finance commission of India came into existence in 1951.it was established under article in 280 of Indian constitution by the president of India. It was formed to define the financial relations between the centre and the state. The financial commission act of 1951 states the terms of qualification, appointed and disqualification the terms, eligibility and power of the finance commission.

6. Functions The distribution between the Union and the States of the net proceeds of taxes which are to be, or may be, divided between them and the allocation between the States of the respective shares of such proceeds . The measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats in the State on the basis of the recommendations made by the Finance Commission of the State . The measures needed to augment the Consolidated Fund of a State to supplement the resources of the Municipalities in the State on the basis of the recommendations made by the Finance Commission of the State

7. Qualifications of the members   Should have the qualification as a Judge of High court. Should have knowledge of Government finances or accounts. Have had experience in administration and financial expertise. Have special knowledge of economics

8. Powers of the Commission Has all powers of the civil court as per the Code of Civil Procedure, 1908. Can summon and enforce the attendance of any witness or ask any person to deliver information or produce a document . Can ask for the production of any public record or document from any court or office. Shall be deemed to be a civil court for purposes of Sections 480 and 482 of the Code of Criminal Procedure, 1898

9. Disqualification from being a member of the Commission mentally unsound He has been convicted of an immoral offence

10. Finance Commission Year of Establishment Chairman Operational Duration First 1951 K.C Neogy 1952-57 Second 1956 K.Santhanam 1957-62 Third 1960 A.K. Chanda 1962-66 Fourth 1964 P.V. Rajamannarr 1966-69 Fifth 1968 Mahaveer Tyagi 1969-74 Sixth 1972 K. Brahmananda Reddy 1974-79 Seventh 1977 J.M. Shellet 1979-84 Eighth 1983 Y. B. Chavan 1984-89 Ninth 1987 N.K.P salve 1989-95 Tenth 1992 K.C pant 1995-2000 eleventh 1998 A.m.khusro 2000-2005 twelfth 2003 C.Rangarajan 2005-2010 thirteenth 2007 Vijay l kelkar 2010-2015

11. How are the recommendations of Finance Commission implemented? Those to be implemented by an order of the President Those to be implemented by executive orders

12. Major Recommendations of 13th Finance Commission The share of states in the net proceeds of the shareable Central taxes should be 32%.This is 1.5% higher than the recommendation of 12 th  finance commission  Revenue deficit to be progressively reduced and eliminated, followed by revenue surplus by 2013-14. Fiscal deficit to be reduced to 3% of the GDP by 2014-15. A target of 68% of GDP for the combined debt of centre and states. The Medium Term Fiscal Plan(MTFP)should be reformed and made the statement of commitment rather than a statement of intent.

13. Initiatives to reduce the number of Central Sponsored Schemes(CSS)and to restore the predominance of formula based plan grants . States need to address the problem of losses in the power sector in time bound manner.