Facts about the finance commission of india

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List of Finance Commissions and their heads

List of Finance Commissions and their heads is an important static GK topic for MBA, Bank PO and other competitive exams. You can expect at least 1 to 2 questions from List of Finance Commission and their head in any competitive exams.

Important Facts regarding Finance Commission

Finance Commission came into existence in 1951.

It was established under Article 280 of the Indian Constitution by the President of India.

It was formed to define the financial relations between the centre and the state.

As per the Constitution, the commission is appointed every five years and consists of a chairman and four other members.

Till date, Fourteen Finance Commissions have submitted their reports.

Finance commission is antonomous body which is governed by the government of india.

14th Finance Commission ( 2015 – 2020 )

1. The 14th Finance Commission was established in 2013 and is headed by Former Governor of the Reserve Bank of India, Mr. Y.V. Reddy, is the Chairman.

2. Major Recommendations of 14th Finance Commission include

Fiscal deficit to be reduced to 3% of the GDP by 2017–18.

A target of 62% of GDP for the combined debt of centre and states.

The share of states in the net proceeds of the shareable Central taxes should be 42%. This is 10 percentage points higher than the recommendation of 13th Finance Commission.

Revenue deficit to be progressively reduced and eliminated.