Who Appoints the State Finance Commission?

Who Appoints the State Finance Commission?

The Governor of a State appoints a Finance Commission, every five years in accordance with Article 243-I of the Indian Constitution.  Every recommendation of the State Finance Commission and subsequent action taken by the State Government must be brought before the State legislature by the Governor....

Functions of the State Finance Commission:

State Finance Commission’s functions are comparable to that of the Central Finance Commission, which, in accordance with Article 280 of the Indian Constitution, is appointed by the President of India and is in charge of allocating central revenues to the Union and state governments. The functions of the State Finance Commission are:...

Limitations of the State Finance Commission:

State Finance Commission is a very important institution for the decentralized democracy of India, despite that, it is facing a number of limitations. These are:...

Measures Need to be Taken for State Finance Commission:

To strengthen the State Finance Commission, various measures need to be taken. The 6th report of the 2nd ARC also states some steps. These are...

Conclusion:

The enlarged role of the State Finance Commission can change dramatically the nature and character of Fiscal Federalism. In addition to financial issues, local bodies also face institutional, structural, administrative, and political issues, the majority of which must be resolved by the State Government. Local bodies are the pillar of India and to see India as an empowered nation, institutions like State Finance Commission must be strengthened....