News:The 15th Finance Commission has assured the Rajasthan government’s demand for additional funds on the basis of factors such as difficult geography, heterogeneous society, limited resources and future needs.
Facts:
About Finance commission:
- The Finance Commission is constituted by the President under Article 280 of the Constitution mainly to give its recommendations on distribution of tax revenues between the Union and the States and amongst the States themselves.
- The Commission is appointed every five years.It consists of a Chairman and four other members.
- The First Finance Commission was constituted in 1951 under the chairmanship of Shri K.C. Neogi.
Functions of Finance Commission
- The Commission makes recommendations to the President of India on the distribution of tax proceeds between the Union and the States and the share of each state.
- The Commission also decides the principles that govern the payment of grants-in-aid to states from the Consolidated Fund of India.
- The President of India can also refer any other matter to the Finance Commission in the interest of building a sound financial system.
The 15th Finance Commission
- The 15th Finance Commission was constituted by the President of India under the chairmanship of NK Singh.
- This Commission is expected to submit its report by October 2019.Its recommendations will cover a period of five years from April 2020 to March 2025.
