Finance Commission ensures equitable distribution of funds between Centre and States from "summary" of Indian Polity by J.C. Johari
The Finance Commission plays a crucial role in ensuring a fair and balanced distribution of financial resources between the Centre and the States in India. This is essential for maintaining the stability and efficiency of the fiscal system of the country. The Commission is a constitutional body that is appointed every five years to review the financial situation of the government and make recommendations on the distribution of funds. One of the primary functions of the Finance Commission is to recommend the distribution of tax revenues between the Centre and the States. This is done based on various factors such as population, area, and infrastructure requirements of the States. By considering these factors, the Commission aims to ensure that each State re...
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