Everything about Finance Commission
Finance Commission of India
- It is set up every five years by the President under Article 280 of the Constitution.
- It first came into existence in 1951.
- It was formed to define the financial relations between the centre and the state.
- These recommendations cover a period of five years.
- The commission also lays down rules by which the centre should provide grants-in-aid to states out of the Consolidated Fund of India.
- It is also required to suggest measures to augment the resources of states and ways to supplement the resources of panchayats and municipalities.
Qualification of members
- The Chairman of the Finance Commission is selected among people who have had the experience of public affairs.
- The other four members are selected from people who:
- Are or have been or are qualified, as judges of High Court
- Have knowledge of Government finances or accounts
- Have had experience in administration and financial expertise
- Have special knowledge of economics.
Powers of the commission
- The Commission can determine its own procedure.
- It has all powers of the civil court as per the Court of Civil Procedure, 1908.
- It can summon and enforce the attendance of any witness or ask any person to deliver information or produce a document, which it deems relevant.
- It can ask for the production of any public record or document from any court or office.
- It shall be deemed to be a civil court for purposes of Sections 480 and 482 of the Code of Criminal Procedure, 1898.