Finance Commission

The Constitution of India provides for the establishment of a Finance Commission for the purpose of allocation of certain resources of revenue between the Union and theState Governments. The Finance Commission is established under Article 280 of the Constitution of India by the President.

The qualifications, powers and procedures of the Commission itself are regulated by the Finance Commission (Miscellaneous Provisions) Act 1951. Such Commissions are deemed to be civil courts for the purposes of the Code of Criminal Procedure 1898.

The Finance Commission is constituted to define financial relations between the Center and the States. Under the provision of Article 280 of the constitution, the President appoints a Finance Commission for the specific purpose of devolution of non-plan revenue resources.

Functions

Under Article 280 of the Constitution the Finance Commission is required to make recommendations to President in respect of:

1. The distribution of net proceeds of taxes to be shared between the Centre and the States, and the allocation between the States, the respective share of such proceeds.
2. The principles which should govern the grants-in-aid by the Center to States out of the Consolidated Fund of India.
3. 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.
4. Any other matter referred to it by the President in the interests of sound finance.

Finance Commissions appointed so far

So far 13 Finance Commissions have been appointed which are as follows:

Finance Commissions Appointed
Finance Commission	Year of Establishment	Chairman	Operational Duration
First	1951	K.C Neogy	1952-57
Second	1956	K.Santhanam	1957-62
Third	1960	A.K. Chanda	1962-66
Fourth	1964	P.V. Rajamannar	1966-69
Fifth	1968	Mahaveer Tyagi	1969-74
Sixth	1972	K. Brahmananda Reddy	1974-79
Seventh	1977	J.M. Shellet	1979-84
Eighth	1983	Y.B. Chavan	1984-89
Ninth	1987	N.K.P.Salve	1989-95
Tenth	1992	K.C Pant	1995-2000
Eleventh	1998	A.M.Khusro	2000-2005
Twelfth	2003	C.Rangarajan	2005-2010
[Thirteenth]	2007	Vijay Kelkar	2010-2015