FINANCE COMMISSION OF INDIA
UPSC GS MAINS IMPORTANT QUESTIONS How is the Finance Commission of India constituted? What do you know about the terms of reference of the recently constituted Finance Commission? Discuss Article 280 of the constitution of India provides for a Finance commission as a quasi judicial body. Finance Commission is constituted by the President of India every fifth year or at such earlier time as he considers necessary. The Finance Commission consists of a chairman and four other members to be appointed by the president. The fifteenth Finance Commission was set under the chairmanship of N.K.Singh to suggest measures for the distribution of net proceeds of taxes to be shared between the Centre and the states for the period 2020 to 2025. Terms of Reference of 15th Finance Commission: 1. Vertical devolution of taxes- The Finance Commission has to examine the impact of 42% devolution (14th Finance Commission) on Union government, including its New India Vision - 2022. States fear that the de