Resignation Process: A member of the State Finance Commission must submit their resignation in writing.
Effective Date of Resignation: The resignation does not become effective immediately. It takes effect only after it is accepted by the appointing authority, which is typically the Governor.
Filling Vacancies: When a vacancy arises in the SFC, the Governor has the authority to appoint a new member.
Term of Appointed Member: A member appointed to fill a vacancy serves for the remainder of the term of the member they replaced. They do not serve a fresh, full term. This is a crucial distinction for competitive exams.
Constitutional Basis: The State Finance Commission is a constitutional body established under Article 243-I and 243-Y of the Constitution of India.
Role of SFC: The SFC reviews the financial position of Panchayats and Municipalities and recommends the distribution of taxes between the state and local bodies, as well as grants-in-aid.
Appointment Authority: The Governor appoints the Chairman and members of the State Finance Commission.