Under Article 280 of the Indian Constitution, the President of India has the power to constitute a Finance Commission. The Commission’s role is to define the financial relationship between the central government and individual state governments. In this context, the Commission’s work is to define the rules and regulations that govern the financial relationship between the central government and state governments.
The Finance Commission has the authority to regulate a variety of financial institutions. It also supervises the operations of regulated entities. The commission aims to increase the economic prosperity of the state by ensuring that these institutions are operating safely and soundly. To fulfill this role, the finance commission appoints a number of individuals who have a range of experience and expertise.
The president of India appoints a chairman and four other members to the finance commission. These members are appointed by the president for a specified term. The members are eligible for re-appointment. The current Finance Commission is the 14th, and it will serve from 1 April 2015 to 31 March 2020. The chairman is Dr. Y.V. Reddy. The 13th Finance Commission recommended that the state’s share of the union tax be increased from 32 to 42 percent. The Commission will submit its report by October 2019.
In India, the Finance Commission is a constitutional body that makes recommendations to the President. The Commission is responsible for setting the principles for tax distribution among the states. It also defines the fiscal relationship between the Union and the States. In this way, the commission is a bridge between the two. The purpose of the Finance Commission is to ensure that the Union’s budgetary resources are distributed in an equitable manner among the states.
The Finance Commission meets quarterly, with meetings occurring weekly during budget season. Members of the Finance Commission must hold professional finance experience. The Commission also reviews changes to the City Investment Policy. Meetings are open to the public. In addition to reviewing the City’s budget, the Finance Commission reviews and makes recommendations regarding investments and loans.
The Commission recommended a three-year path for fiscal deficit, with fiscal deficits limited to 4% in 2021-22 and 3% in 2023-26. In addition, the Commission also recommended that the states have access to unutilised borrowing amounts for the next five years. The Commission’s recommendations aim to ensure fiscal balance and public debt reduction in India.
The Commission issues revenue bonds and participates in state and federal housing programs. It also sets eligibility standards for those in need of housing, taking into account factors such as family size, cost of living, and energy efficiency. The Commission includes a local government official, a housing consumer, a low-income housing expert, and five general public members.
The Finance Commission is an important advisory body to the City Council. Its job is to provide financial advice to the City Council and advise on fiscal policy. Its members must be registered in the city and have at least two years of experience in financial management. Members are limited to two consecutive terms.