What is Finance Commission? What are the Recommendations of the Finance Commission? Article 280 and 281 of Constitution of India, 1949

Finance Commission and Recommendations of the Finance Commission are defined under Article 280 and 281 of Constitution of India 1949. Provisions under these Articles are:



Article 280 of Constitution of India "Finance Commission"

(1) The President shall, within two years from the commencement of this Constitution and thereafter at the expiration of every fifth year or at such earlier time as the President considers necessary, by order constitute a Finance Commission which shall consist of a Chairman and four other members to be appointed by the President.

(2) It shall be the duty of the Commission to make recommendations to the President as to-

(a) the distribution between the Union and the States of the net proceeds of taxes which are to be, or may be, divided between them under this Chapter and the allocation between the States of the respective shares of such proceeds;

(b) the principles which should govern the grants- in-aid of the revenues of the States out of the Consolidated Fund of India;

(c) any other matter referred to the Commission by the President in the interests of sound finance.

(4) The Commission shall determine their procedure and shall have such powers in the performance of their functions as Parliament may by law confer on them.


Article 281 of Constitution of India "Recommendations of the Finance Commission"

The President shall cause every recommendation made by the Finance Commission under the provisions of this Constitution together with an explanatory memorandum as to the action taken thereon to be laid before each House of Parliament

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