Finance Commission

Financial Commission is constituted to define financial relations between the Center and the States. Under the provision of Article 280 of the constitution, the President appoints a Financial Commission for the specific purpose of devolution of non-plan revenues resources. The functions of the commission are to make recommendations to the President in respect of:

1. The distribution of net proceeds of taxes to be shared between the Union and the States and the allocation of share of such proceeds among the States.
2. The principles which should govern the payment of grant-in-aid by the Center to the States.
3. Any other matter concerning financial relations between the Center and the States.

In above context so far 11 Financial Commissions have been appointed which are as follows:

Finance Commission	Year of Establishment	Chairman	Operational Duration	Year of Submitting Report
I	1951	K.C.Niyogi	1952-1957	1952
II	1956	K. Santhanam	1957-1962	1956* and 1957
III	1960	A. K. Chanda	1962-1966	1961
IV	1964	P. V. Rajamannar	1966-1969	1965
V	1968	Mahavir Tyagi	1969-1974	1968* and 1969
VI	1972	Brahma Nand Reddy	1974-1979	1973
VII	1977	J. M. Shellet	1979-1984	1978
VIII	1983	Y.V. Chawan	1984-1989	1983* and 1984
IX	1987	N.K.P. Salve	1989-1995	1989
X	1992	K.C. Pant	1995-2000	Nov 26, 1994
XI	1998	A.M. Khusro	2000-2005	Jan 15, 2000*; July 7, 2000 and Aug 31, 2000
XII	2003	C. Rangarajan	2005-2010	Nov 30, 2004
XIII	2007	Vijay L. Kelkar	2010-2015	Constitued in Nov 2007

* Interim Report

All the above 11 Commissions have submitted their report in the year mentioned above. The recommendation of the various commissions can be divided in three heads

A. Division and distribution of income tax and other taxes.

B. Grants-in-aids

C. Loans to the state by the center