Article 280 of Indian Constitution
Article 280: Finance Commission
What does Article 280 say?
Article 280 provides for the Finance Commission of India.
The President of India shall appoint a Finance Commission every five years (or earlier if necessary).
The Commission recommends how the revenues of the Union government should be distributed between:
The Union (Central government)
The States
And among the states themselves.
🔹 Purpose of the Finance Commission
To recommend the distribution of financial resources between the Centre and the States.
To promote fiscal federalism by ensuring equitable sharing of revenue.
To suggest measures to augment the Consolidated Fund of States.
To address financial imbalances between the Centre and States.
🔹 Functions of the Finance Commission
The Finance Commission advises on:
Distribution of net proceeds of taxes between Centre and States.
Principles which should govern grants-in-aid to States from the Consolidated Fund of India.
Measures to supplement the resources of States to enable them to perform their functions.
Any other matter referred by the President in the interests of sound finance.
🔹 Composition
The Commission consists of a Chairman and four other members appointed by the President.
Members are usually experts in public finance, economics, or administration.
🔹 Significance
Ensures financial stability and cooperation between Centre and States.
Helps maintain balanced regional development.
Plays a vital role in federal fiscal relations in India.
RELATED Blog
0 comments