Question: Recently, the Union Cabinet has approved the setting up of the 15th Finance Commission. Under which article of the Indian Constitution, the Finance Commission is constituted?
(a) Article 280 (1)
(b) Article 260 (1)
(c) Article 300 (a)
(d) article 246 (1)
Answer: (a)
Related Facts:
- On November 22nd, 2017, Union Cabinet chaired by the Prime Minister Narendra Modi has approved the setting up of the 15thFinance Commission.
- The Terms of 15th finance commission will commence on April 1, 2020.
- 15th Finance Commission after its formation will give recommendations during the next 5 years after reviewing financial position, loss of the Union and the States, keeping in mind the fiscal consolidation framework recommended by the 14th Finance Commission.
- It is noteworthy that Finance Commission is constituted under Article 280 (1) of the Indian Constitution.
- Accordingly, a Finance Commission will be constituted within two years from the beginning of the constitution and after the completion of every five years or before, which the President considers necessary.
- So far 14 finance commissions have been set up.
- It is also noteworthy that the 14th Finance Commission was constituted on January 2nd, 2013, whose chairman is by Y.V. Reddy.
- The 14th Finance Commission submitted its report on December 15, 2017.
- The recommendations of the 14th Finance Commission are valid for the financial year 2019-20.
C. Niyogi was the Chairman of the First Finance Commission. - The main function of the Finance Commission is to decide the share of taxes between the union and the states.
Reference:
http://pib.nic.in/newsite/PrintRelease.aspx?relid=173726
http://indianexpress.com/article/business/15th-finance-commission-gets-cabinet-go-ahead-4950183/