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Finance Commission || State Government & Administration Video Lecture | Public Administration Optional for UPSC (Notes)
FAQs on Finance Commission -- State Government & Administration Video Lecture - Public Administration Optional for UPSC (Notes)
| 1. What is the role of the Finance Commission in India? |  |
Ans. The Finance Commission is a constitutional body established under Article 280 of the Indian Constitution. Its primary role is to recommend the distribution of tax revenues between the Union and the States, as well as among the States themselves. It also advises on measures needed to augment the Consolidated Fund of a State to supplement the resources of Panchayats and Municipalities.
| 2. How often is the Finance Commission constituted? | |
Ans. The Finance Commission is constituted every five years. However, it can be constituted earlier if deemed necessary by the President of India. Each commission's recommendations are crucial for the fiscal federalism of the country.
| 3. What are the main functions of the Finance Commission? | |
Ans. The main functions of the Finance Commission include: 1) Determining the distribution of taxes between the Union and the States, 2) Assessing the financial needs of States, 3) Making recommendations on grants-in-aid to States, and 4) Reviewing the financial position of the States and suggesting measures to improve it.
| 4. Who appoints the members of the Finance Commission? | |
Ans. The members of the Finance Commission are appointed by the President of India. The commission typically consists of a chairman and four other members, who are usually experts in finance, economics, and public administration.
| 5. Why is the Finance Commission important for state governments? | |
Ans. The Finance Commission is important for state governments as it ensures a fair distribution of financial resources. Its recommendations help states in planning their budgets, implementing development projects, and addressing fiscal imbalances, thereby promoting equitable growth across the country.
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Sep 29, 2025
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