a7d20Finance Commission of India

8/3/2019 a7d20Finance Commission of India

1/15

Finance Commission of India


2/15


3/15

About..

came into existence in 1951 .

was established underArticle 280of the

Indian Constitution of India by the Presidentof India.

was formed to define the financial relations

between the centre and the state.


4/15


5/15

Qualifications of the members

The Chairman of the Finance Commission isselected among people who have had theexperience of public affairs.

The other four other members are selected from

people who: Are, or have been, or are qualified, as judges of

High Court, or

Have knowledge of Government finances oraccounts, or

Have had experience in administration and financialexpertise; or

Have special knowledge of economics


6/15

Disqualification from being a member

of the CommissionA member may be disqualified if:

He is mentally unsound;

He is an undischarged insolvent; He has been convicted of an immoral

offence;

His financial and other interests are such that

it hinders smooth functioning of the

Commission.


7/15

Functions

It is the duty of the Commission to makerecommendations to the President as to

the distribution between the Union and the States ofthe net proceeds of taxes which are to be, or may be,divided between them and the allocation between theStates of the respective shares of such proceeds;

the ideology which should govern the grants-in-aid ofthe revenues of the States out of the ConsolidatedFund of India;

the measures needed to expand the ConsolidatedFund of a State to supplement the resources of thePanchayats in the State on the basis of therecommendations made by the Finance Commissionof the State;


8/15

Functions

the measures needed to augment the ConsolidatedFund of a State to supplement the resources of theMunicipalities in the State on the basis of therecommendations made by the Finance Commission

of the State;

any other matter referred to the Commission by thePresident in the interests of sound finance.

The Commission determines its procedure and have

such powers in the performance of their functions asParliament may by law confer on them.


9/15

The recommendations of the Finance Commissionare implemented as under:-

Those to be implemented by an order of thePresident:The recommendations relating to distribution ofUnion Taxes and Duties and Grants-in-aid fall in thiscategory.

Those to be implemented by executive orders:The recommendations in respect of sharing of ProfitPetroleum, Debt Relief, Mode of Central Assistance,etc. are implemented by executive orders.

How are the recommendations of

Finance Commission implemented?


10/15

Composition of the Thirteenth Finance

Commission The Thirteenth Finance Commission has been set up under the

Chairmanship of Dr. Vijay L. Kelkar [former Union FinanceSecretary and Advisor to the Finance Minister].

Other Members of the Commission are Dr. Indira Rajaraman

[Professor Emeritus, National Institute of Public Finance & PolicyNew Delhi),

Prof. Atul Sarma, Former Vice Chancellor, Rajiv GandhiUniversity [erstwhile Arunachal University],

Dr. Sanjiv Misra [Former Secretary (Expenditure) Government ofIndia).

Shri B.K. Chaturvedi (Member, Planning Commission) is the part-time Member of the Thirteenth Finance Commission.

Shri Sumit Bose is the Secretary, Thirteenth FinanceCommission.


11/15

The tenure of the Thirteenth Finance

Commission The Finance Commission is required to give

its report by 31st October, 2009. Its

recommendations will cover the five year

period commencing from 1st April, 2010.


12/15

Introduction to the doctrine of pith and

substanceThis doctrine envisages that the Legislation as

a whole be examined to ascertain its true

nature and character of Legislation.Pith and substances is a legal doctrine in

Canadian Constitutional interpretation used

to determine under which head of power a

given piece of Legislation falls.


13/15


sub

stanceWithin their respective spheres, the Union and the State

Legislatures are made supreme and they should not encroachinto the sphere reserved to the other.

The doctrine of pith and substance is applied when the legislative

competence of a Legislature with regard to a particular enactment is challenged with reference to the entries in differentlegislative Lists, because a law dealing with a subject in one Listwithin the competence of the Legislature concerned is alsotouching on a subject in another List not within the competenceof that Legislature.

In that such a cases what has to be ascertained is the pith andsubstances of the enactment, i.e. the true character of theLegislation.


14/15


sub

stanceTo ascertain the true character of the Legislation in question, one

must have regard to it as a whole, to its object and to its scopeand effect of its provisions.

If according to its true nature and character, the Legislation

substantially relates to a topic assigned to the Legislature whichhas enacted it, then it is not invalid merely because it incidentallytrenched or encroaches on matters assigned to another Legislature.

Briefly Stated, what the doctrine means, is this. Where the questionarises of determining whether a particular law relates to a

particular subject (mentioned in one List or another), the courtlooks to the substance (essence) of the matter.


15/15


sub

stanceThus, if the substance falls within Union List, then the incidental

encroachment by the law on the State List does not make itinvalid.

To determine the pith and substance, two aspects of the law must

be examined: the purpose of enacting body and the legal effectof the law. To assess the purpose, the courts may consider bothintrinsic evidence, such as the Legislations preamble or purposesclauses, and extrinsic evidence, such as minutes of Parliamentary debates.

In doing so, they must nevertheless seek to ascertain the true

purpose of the Legislation, as opposed to its mere Stated orapparent purpose.

Equally the courts may take into account the effects of theLegislation.

a7d20Finance Commission of India

Documents

Transcript of a7d20Finance Commission of India