One of the core tasks of a Finance Commission as stipulated in Article 280 (3) (a) of the Constitution is to make recommendations regarding the distribution between the Union and the states of the net proceeds of taxes. This is the most important task of any Finance Commission, as the share of states in the net proceeds of Union taxes is the predominant channel of resource transfer from the Centre to states.
|GS 2 Strategy, Structure and Syllabus||Indian Polity Notes|
|Controller General of Accounts (CGA)||Planning Commission of India|
|NCERT Notes For UPSC||Balance of Payment (BoP)|