List of Finance Commissions and their heads
List of Finance Commissions and their heads is an important static GK topic for MBA, Bank PO and other competitive exams. You can expect at least 1 to 2 questions from List of Finance Commission and their head in any competitive exams.
Important Facts regarding Finance Commission
- Finance Commission came into existence in 1951.
- It was established under Article 280 of the Indian Constitution by the President of India.
- It was formed to define the financial relations between the centre and the state.
- As per the Constitution, the commission is appointed every five years and consists of a chairman and four other members.
- Till date, Fourteen Finance Commissions have submitted their reports.
- Finance commission is autonomous body which is governed by the government of India.
14th Finance Commission( 2015 – 2020 )
- The 14th Finance Commission was established in 2013 and is headed by Former Governor of the Reserve Bank of India, Mr. Y.V. Reddy, is the Chairman.
- Major Recommendations of 14th Finance Commission include
- The share of states in the net proceeds of the shareable Central taxes should be 42%.This is 10% higher than the recommendation of 13th Finance Commission.
- Revenue deficit to be progressively reduced and eliminated.
- Fiscal deficit to be reduced to 3% of the GDP by 2017–18.
- A target of 62% of GDP for the combined debt of centre and states.
- The Medium Term Fiscal Plan (MTFP) should be reformed and made the statement of commitment rather than a statement of intent.
- FRBM Act need to be amended to mention the nature of shocks which shall require targets relaxation.
- Both centre and states should conclude ‘Grand Bargain’ to implement the model Goods and Services Act (GST).
- Initiatives to reduce the number of Central Sponsored Schemes (CSS) and to restore the predominance of formula based plan grants.
- States need to address the problem of losses in the power sector in time bound manner.
|S.No||Finance Commission||Year of Establishment||Chairman||Operational Duration|
|1.||First||1951||K. C. Neogy||1952–57|
|3.||Third||1960||A. K. Chanda||1962–66|
|4.||Fourth||1964||P. V. Rajamannar||1966–69|
|6.||Sixth||1972||J. M. Shelat||1974–79|
|7.||Seventh||1977||K. Brahmananda Reddy||1979–84|
|8.||Eighth||1983||J. M. Shelat||1984–89|
|9.||Ninth||1987||Y. B. Chavan||1989–95|
|10.||Tenth||1992||N. K. P. Salve||1995–2000|
|11.||Eleventh||1998||A. M. Khusro||2000–2005|
|13.||Thirteenth||2007||Dr. Vijay L. Kelkar||2010–2015|
|14.||Fourteenth||2013||Dr. Y. V Reddy||2015–2020|
|15.||Fifteenth||2017||N. K. Singh||2020-2025|
Fifteenth Finance Commission
The Fifteenth Finance Commission is an Indian Finance Commission constituted in November 2017 and is to give recommendations for devolution of taxes and other fiscal matters for five fiscal years, commencing 1 April 2020.
|Founder: Ram Nath Kovind|
|Founded: 27 November 2017|
|Parent department: Department of Economic Affairs, Ministry of Finance, Government of India|
|Preceding Commission: Fourteenth Finance Commission|
- K. Singh, IAS, Chairman.
- Ajay Narayan Jha, IAS, Member.
- Anoop Singh, Member.
- Ashok Lahiri, Member; Prof. Ramesh Chand, Member (part-time).
- Arvind Mehta, IAS, Secretary
- The commission was set up to give recommendations for devolution of taxes and other fiscal matters for five fiscal years, commencing 1 April 2020.
- The main tasks of the commission were to “strengthen cooperative federalism, improve the quality of public spending and help protect fiscal stability”
- The commission’s chairperson, N. K. Singh, said in April 2019 that there should be mechanisms through which the Finance Commissions and the GST Council could coordinate to “ensure there are multiplier benefits of a higher growth trajectory”.