Which article of the Indian Constitution provides for the Finance Comm...
Article 280 of the Constitution of India provides for a Finance Commission as a quasi-judicial body. It is constituted by the President of India every fifth year or at such earlier time as he considers necessary.
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Which article of the Indian Constitution provides for the Finance Comm...
Article 280 of the Indian Constitution provides for the Finance Commission as a quasi-judicial body.
Explanation:
The Finance Commission is a constitutional body that is set up every five years to make recommendations on matters related to the distribution of financial resources between the central government and the state governments.
Key Functions of the Finance Commission:
The Finance Commission performs the following key functions:
1. Distribution of taxes: The Finance Commission recommends the distribution of taxes between the Union and the states. It takes into account factors like population, per capita income, and the area of each state to determine the share of taxes to be allocated to each state.
2. Grant-in-aid: The Commission recommends the grants to be given to the states from the Consolidated Fund of India. These grants are given to assist states in meeting their revenue deficits and fulfilling specific needs.
3. Fiscal devolution: The Commission suggests measures to augment the Consolidated Fund of a state to supplement the resources of the local governments in the state.
4. Review of the financial position: The Commission reviews the financial position of the Union and state governments, taking into account their revenue and expenditure trends. It also examines the fiscal responsibility of the governments.
5. Other matters: The Finance Commission may also be required to address any other matter related to finance that the President may refer to it.
Quasi-judicial Body:
The Finance Commission is considered a quasi-judicial body because it has certain characteristics of a judicial body. It has the power to make binding recommendations, and its decisions are based on a careful examination of facts and evidence.
The Commission conducts hearings, seeks information, and consults with stakeholders to gather relevant data and make informed decisions. Its recommendations are based on objective criteria and are meant to address the financial needs and concerns of both the Union and the states.
In conclusion, Article 280 of the Indian Constitution provides for the Finance Commission as a quasi-judicial body. The Commission plays a crucial role in ensuring the equitable distribution of financial resources between the Union and the states, thereby promoting fiscal federalism in the country.