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Finance Commission

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santhoshv339's version from 2017-02-09 05:07

Finance Commission

Question Answer
Which Article of the constitution provides for Finance Commission ?Art 280
Finance commission is what type of body ?Constitutional Quasi Judicial body
Who constitutes Finance commission ?President
When is the Finance commission constituted ?Every 5 years by President or at such earlier time as he considers necessary
What is the organisational setup of Finance Commission ?Chairman and 4 other members
Who appoints members of Finance Commission ?President
Who determines the conditions of service and tenure of members of Finance Commission ?President as given in order
Who determines the qualifications of members of Finance commission and the manner in which they should be appointed ?Parliament power given by constitution
Which act determines the qualifications of members of Finance commission ?Finance Commission
What is the qualification of the chairman ?person having experience in public affairs
What are the qualifications of the members ?1) A judge of High court or one who can be appointed as one 2) A person having specialised knowledge of finance and accounts of the government 3) A person having wide experience in financial matters and administration 4) A person who has special knowledge of economics
What function does FC have in relation to distribution of taxes ?recommends to president distribution of the net proceeds of taxes to be shared between the Centre and the states (Vertical distribution)and the allocation between the states (horizontal distribution)
What function does the FC have in relation to Consolidated fund of India ?recommends to president principles that should govern the grants-in-aid to the states by the Centre out of the consolidated fund of India
What function does FC have in relation to Panchayats and Municipalities ?recommends to president the measures needed to augment the consolidated fund of a state to supplement the resources of the panchayats and the municipalities in the state on the basis of the recommendations made by the state finance commission
Who can refer other matters to FC ?president in the interests ofsound finance
Till 1960, the commission also suggested the grants given to the which States in lieu of assignment of any share of the net proceeds in each year of export duty on jute and jute products for a temporary period of ten years from the commencement ofthe Constitution ?Assam, Bihar, Odisha and West Bengal
The Finance Commission presents an annual report to ?President
The president places the reports of the Finance Commission ?Parliament along with action taken on the recommendations
Are the recommendations of the FC binding on government ?No Advisory only
Is there a legal warrant for excluding capital grants or Capital expenditure wrt Art 275 ?No FC can take in to account both revenue and Capital expenditures
What is the main function of the Finance Commission now ?Determining the revenue gap of each state and providing for filling up the gap by a scheme of devolution, partly by a distribution oftaxes and duties and partly by grants-in-aid
What is the functions of FC vis viz PC ?principles governing the distribution of the plan grants will be set out by the Finance Commission and application of these principles from year to year will be left to the Planning Commission and the Government
memorize

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