FINANCE COMMISSION

Finance Commission was formed under article 280 of the constitution.  The first Finance Commission was set up in the year 1951 and K.C, Niyogi was appointed the Chairman.  President has the authority to appoint a Finance Commission.  It is a constitutional body which defines the centre-state federal relation.  Its primary task is to recommend division of States’ revenues collected by the Centre of the divisibility pool between the centre and the states and the share to be allocated to each state.  One of the important responsibilities of the Finance Commission is to take measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats and Municipalities in the State on the basis of the recommendations made by the Finance Commission of the State.

So far 14 finance commissions have been appointed.

 

Finance Commission	Chairman	Years of Establishment	Duration
I	K C Niyogi	1951	1952–57
II	K Santhanam	1956	1957–62
III	A K Chanda	1960	1962–66
IV	P V Rajamannar	1964	1966–69
V	Mahaveer Tyagi	1968	1969–74
VI	Brahma Nand Reddy	1972	1974–79
VII	J M Shellet	1977	1979–84
VIII	Y B Chawan	1983	1984–89
IX	N K P Salve	1987	1989–95
X	K C Pant	1992	1995–2000
XI	A M Khusro	1998	2000–2005
XII	C Rangarajan	2003	2005–2010
XIII	Vijay Kelkar	2009	2010–2015
XIV	Y V Reddy	2013	2015–2020