Previous Year Question

The First Finance Commission of India was constituted by the President on 22 November 1951, with Shri K. C. Neogy as its Chairman. The Chairman and members assumed office on 30 November 1951.

Apart from the Chairman, the original members included V. P. Menon, Justice R. Kaushalendra Rao, Dr. B. K. Madan and M. V. Rangachari. After V. P. Menon resigned, V. L. Mehta was appointed in his place.

Article 280 of the Constitution of India provides for the constitution of a Finance Commission by the President. The first Commission was to be constituted within two years of the commencement of the Constitution and thereafter, ordinarily, every five years.

The major functions of the Finance Commission include recommending the distribution of the net proceeds of taxes between the Union and the States, allocation of States' shares and principles governing Grants-in-Aid from the Consolidated Fund of India.

The First Finance Commission submitted its Report in 1952. It played an important role in laying the early institutional framework for Centre-State fiscal relations in independent India.

First Finance Commission → 1951 → Chairman K. C. Neogy → Report 1952