An explanation or interpretation of what is meant by the phrase “Finance Commission” can be found in Article 264 of the Indian Constitution.
The Office of the Finance Commission is a keystone to Indian democracy as it’s responsible for distributing financial resources between states and allocating funds to local bodies.
This page provides you a valuable insight into the provision of the Article stated before.
Article 264 Of The Indian Constitution
A definition or explanation of the phrase “Finance Commission” is given in Article 264 of the Indian Constitution. Its provision is as follows:
A finance commission established in accordance with article 280 is referred to as the “Finance Commission” in Part XII of the Indian Constitution.
What Is Finance Commission?
According to Article 280 of the Constitution, the President appoints the Finance Commission, which has as its major responsibility making suggestions on how the tax income should be divided between the Union and the States as well as among the States themselves. The vertical inequalities between the taxing and spending authority of the central government and the states, as well as the equalization of all public services across the states, are two unique aspects of the Commission’s work.
In A Nutshell
Article 264 provides the interpretation or explanation of the term “Finance Commission” in Part XII of the Indian Constitution. The said Article is outlined in Chapter 1 titled “The Finance” under Part XII.
For Additional Readings:
| Article 265 Of The Indian Constitution | Article 198 Of The Indian Constitution |
| Article 246 Of The Indian Constitution | Article 244 Of The Indian Constitution |
FAQs On Article 264
Is Finance Commission Mentioned In Constitution?
According to Article 280 of the Constitution, the President appoints the Finance Commission, which has as its major responsibility making suggestions on how tax revenues should be shared between the Union and the States as well as among the States themselves.
What Is Article 280?
Article 280 of the Indian Constitution provides for the establishment of a Finance Commission, which is a constitutional body that is responsible for making recommendations to the President of India regarding the distribution of financial resources between the Union (central) government and the state governments, as well as among the states themselves.
How Many Finance Commissions Have Been Established Thus Far, And When Was The First One Established?
The First Finance Commission was established on April 6, 1952, by Presidential Order dated November 22, 1951, and was presided over by Shri K.C. Neogy. At intervals of every five years, the fifteenth finance commissions have so far been established.
What Is Part XII Of The Indian Constitution?
Part XII of the Indian Constitution deals with the Article containing the provisions regarding finances, property, contracts, and suits. Article 264 is enshrined in this Part of the Constitution.
