Write a short note on what are the functions of Finance Commission ?
Share
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
Write a short note on what are the functions of Finance Commission ?
The Finance Commission of India plays a crucial role in fiscal federalism by ensuring the equitable distribution of financial resources between the central government and the state governments. Its main functions include:
Distribution of Taxes: The Finance Commission recommends the distribution of tax revenues between the central government and the state governments to ensure fiscal autonomy and stability.
Grants-in-Aid: It recommends the allocation of grants-in-aid to states based on their revenue needs, developmental requirements, and fiscal capacity.
Fiscal Transfers: The Commission suggests measures to promote fiscal discipline, efficiency, and accountability in the management of public finances by both the central and state governments.
Resource Mobilization: It advises on measures to augment the resources of both the central and state governments through taxation, borrowing, and other means.
Inter-Governmental Relations: The Finance Commission fosters cooperative federalism by facilitating dialogue and coordination between the central government and the state governments on fiscal matters.