Finance Commission: Constitutional Bodies
Indian constitution provided for finance commission under article 280 to maintain ’Fiscal federalism’ in the country. It consists of chairman and four other members. Members of finance commission are appointed by president and they hold office for such period as specified by the president’s order. They can be reappointed Constitution entrusted parliament to lay down qualification for members of the commission. And they have laid down following conditions, chairman should be experienced in public affairs Amongst members, one should be judge of high court (or qualified to be ), one should be specialised in finance and accounts of government, one should be experienced in public administration, and one with special knowledge in economics.
Functions of Finance Commission
Distribution of net proceeds of taxes between centre and states, principles to govern grant in aid to state by centre, measures needed to augment the consolidated fund of states, any other matter referred by the president Recommendations of finance commission are advisory in nature. Till now 14 finance commissions are appointed. Fourteenth finance commission under Y. V. Reddy recommended 42% share to states to among central pool of taxes.
With reference to 14th finance commission which of the following is/are true?
- It increased the share of states in the central divisible pool from 32 to 42 percent.
- It has made recommendations concerning sector specific grants.
- 1 only
- 2 only
- Both 1 and 2
- None of the above
Answer: a (1 only)
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