Finance commission of India.pptx

7/28/2019 Finance commission of India.pptx

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Finance commission of India


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The Finance Commission of India came into

existence in 1951.

The Finance commission is established under article

280 of the Indian Constitution of India by the

President of India.

The Indian Finance Commission Act was passed to

give a structured format to the Finance Commission

of India as per the world standard.


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Act. 270, 273, 275 and 280 provide for the constitution

of a finance commission to recommend to the

president certain measures relating to the distribution

of financial resources between the union and the states.

The commission has to be reconstituted by the

president, every five years.


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Qualifications of Members of Finance

Commission

The Parliament has passed, the Finance (Miscellaneous

Provision) Act, 1951, by exercising its power provided under

the Article 80(1), of the Constitution of India.

The Act stipulates that the Chairman of the Commission shall

be a person who is experienced in the field of public affairs.

The qualifications of other members of Finance Commission

are:

A person who is appointed or is qualified to be appointed as

Judge of a High Court; or


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A person who has adequate knowledge about

finances and accounts of Government; or

A person with considerable experience in

financial matters and in administration; or

A person with special knowledge in the field of

economics.


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Duties & responsibilities of Finance

Commission

The Finance Commission is entrusted with the responsibility of

making make recommendations to the President on the following

matters:

Distribution of total income from taxes of the Government (the

Central and State Government) between the Union and the States as

per there respective contribution towards of the taxes.

Factors based on which the government should allocate the grant-in-aid of the revenues to the States of India out of consolidated fund

of India.


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Any other issue referred by the President to Finance

Commission in the interest of finance.

Measures needed to increase the Consolidated

Fund of State to provide extra resources for the

Panchayats and municipalities in the State, in

consultation with States Finance Commission.


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Functions Of The Finance Commission

The Finance Commission's duty is to recommend to

the President as to-

A) The distribution of net proceeds of taxes between

the Union and the States. B) To evaluate the increase in the Consolidated

Fund of a state to affix the resources of the

Panchayat in the state.

C) To evaluate the increase in the Consolidated

Fund of a state to affix the resources of the

Municipalities in the state.


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Department of Economic Affairs

The Department of Economic Affairs (DEA) is thenodal agency of the Union Government to formulate

and monitor country's economic policies and

programmes having a bearing on domestic and

international aspects of economic management.

A principal responsibility of this Department is the

preparation of the Union Budget annually (excluding

the Railway Budget).


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Department of Expenditure

The Department of Expenditure is the nodal

Department for overseeing the public financial

management system in the Central Government and

matters connected with State finances.

The Department is also coordinating matters

concerning the Ministry of Finance including

Parliament-related work of the Ministry.

The Department has under its administrative control

the National Institute of Financial Management


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Department of Revenue

The Department of Revenue functions under the

overall direction and control of the Secretary

(Revenue).

It exercises control in respect of matters relating toall the Direct and Indirect Union Taxes through two

statutory Boards namely, the Central Board of

Direct Taxes (CBDT) and the Central Board of

Excise and Customs (CBEC).

Each Board is headed by a Chairman who is also

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Department of Financial Services

The Department of Financial Services covers

Banks, Insurance and Financial Services

provided by various government agencies and

private corporations.

It also covers pension reforms and Industrial

Finance and Micro, Small and Medium Enterprise

Sector.


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Department of Disinvestments

Initially set up as an independent ministry (The

Ministry of Disinvestment) in December 1999,

The Department of Disinvestments came into

existence in May 2004 when the ministry was

turned into a department of the Ministry of

Finance.


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Finance commission of India.pptx

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