Question

The Finance Commission in India is constituted by the _______ under article 280 of the Constitution.
1. Supreme Court
2. Parliament
3. Prime Minister
4. President

Answer 1

Correct Answer - Option 4 : President

The correct answer is President.

• The Finance Commission in India is constituted by the President under article 280 of the Constitution.
• The first finance commission was constituted in 1951.
• Finance Commission is a constitutional body for the purpose of allocation of certain revenue resources between the Union and the State Governments.
• The finance commission is appointed every five years.
• The President lays the reports of the Finance commission before both the Houses of the Parliament.
• The finance commission recommends to the President relating to the distribution of the net taxes to be shared between the centre and the states.
• The finance commission consists of a Chairman and four members.

• First chairman of Finance Commission - K.C Neogy
• Chairman of 15^th Finance Commission - Nand Kishore Singh
• Members of 15th Finance Commission - Ashok Lahiri, Ajay Narayan Jha, Anoop Singh and Ramesh Chand
• The 15th Finance Commission has released a report titled ‘Finance Commission in COVID Times’ on 1st February 2021.
• The financial year runs from 1^st April to 31^st March next year.
• Finance Secretary -T. V. Somanathan.(Dec 2021)
• Article 360 - Financial Emergency
• No Financial Emergency has been declared so far in India.