finance commission of india.pptx
TRANSCRIPT
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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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