Question

Who is the Chairman of the Fourth Finance Commission constituted by the Government of Andhra Pradesh ? 
1. M.L. Kantha Rao
2. Y.V. Reddy
3. D. Subba Rao
4. R. Sudarshana Rao

Answer 1

Correct Answer - Option 1 : M.L. Kantha Rao

The correct answer is M.L. Kantha Rao.

• Andhra Pradesh government constituted the Fourth State Finance Commission under the Chairmanship of M L Kantha Rao, the Professor of Economics and Dean S K University.
  • The notification with respect to this was released on 4 January 2015 by Governor E S L Narasimhan.
  • The Commission will submit its report for the period of reference 2015-2020.
  • ​Other members of the Commission
    • Kankala Munirathna Naidu
    • Rokkam Sudarshana Rao
    • Gudipadu Sandhya Rani
    • C Venkateswara Rao: Member Secretary

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• State Finance Commission
  • Under Article 243-I of the Constitution of India, the governor of a state is required to constitute a Finance Commission every five years. 
  • This is in order to decide the resource allocation between the state government and the Panchayati Raj Institutions.
  • Article 243-Y also brought city councils or municipalities under the purview of the State Finance Commission.
• Role of the State Finance Commission
  • A State Finance Commission has functions similar to that of the Central Finance Commission.
    • It allocates resources of a state to its Panchayati Raj institutions at all three levels in terms of taxes, duties, and levies to be collected by the state and the local bodies.
  • Its job is similar to that of the Central Finance Commission constituted by the President of India under Article 280 of the Constitution, which divides the central taxes between the Union government and state governments.