Must Know Facts For IAS Aspirant About Finance Commission Of India
Post on 09,December 2015   4:00 AM
By - PolyEyes Staff
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What Does Finance Commission Do : Finance commission (FC) every five years to record how returns from central taxes should be shared between centre and states. 

FC deals only with the revenue collected through taxes by centre- corporation tax, income tax, customs, excise and service tax. 

How Does FC Divide Resource Between States: The formula used by the latest FC takes into consideration population, demographic changes, area, a state’s per capita income and its share in forest cover. 

  • The base year is taken as 1971.
  • Critical factor in determining the state share is “INCOME DISTANCE” 

INCOME DISTANCE: it is the measure of how far the state’s per capita gross state domestic product (GSDP) is from top state, the higher will be the share of central taxes. 

Legal Status of Finance Commission: FC is appointed by president of India under the article of 280 of the constitution. It has five members including a chairperson. Its recommendations are implemented for five years.

The recommendations of union taxes and duties distributions are implemented by the order of president while other orders (recommendations) like shaning of petradium profit, debt relief, mode of central assistance, etc. are implemented by executive orders.


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Most Recent Comments

getting 81 score in SC category... should i go for mains prep??

by Rahil

What is process job in bihar block

by Jitendra Sharma

Well based on the complexity of questions from constitution, Current affairs, Science and economics ....with an additional option E, it can be said that CUT O FF for General Should be around 80-82....Even many other site including VISION IAS has also speculated the cut off around 84 for General !!

by Surovi

ye jo log 90-92 ki baaten kar rahen unhe khud pata nahi ki what is the right answer for all question. No website has so far given correct solution for all question. I agree with surovi. Th cut off this time should go even lower than last year around 82-84 for general!!

by Sanjay Verma

my dob is -12/02/92 my exam centre is in tilaya on 18 dec but i had lost my admit card so plz give my roll no. atleast so i check the result.

by Rohit Kumar

I guess cut off this time should not exceed 85 for general category. Option Ewas very confusing.science was really the most tougest part. !!

by Bandana

at least 10-15 solutions given on the website is absolutely wrong. even most of the answers of science part are also wrongly given by VISION IAS. MY expectation for PT cut off this year should be around 84-85 for general cat. 78-81 For bc . Hardly 100-200 candidate would be able to score 90-95. so the common basis of cut off should linger around 85-82 for general Cat.

by Rajeev Ranjan
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