Question

Consider the following statements regarding the appointment and tenure of SFC members:

1. Members are appointed by the Governor of the state.

2. The tenure of each member is fixed at five years by the Constitution.

3. Every member is eligible for re-appointment after their term ends.

Which of the statements given above is/are correct?

• A. 1 and 3 only
• B. 2 only
• C. 1 and 2 only
• D. 1, 2, and 3

Answer 1

Answer:

A. 1 and 3 only

State Finance Commission (SFC) - Appointment and Tenure

Appointment of Members:

• Members of the State Finance Commission are appointed by the Governor of the respective state. This is in line with the constitutional mandate to decentralize fiscal powers and ensure financial autonomy at the state level.

Tenure of Members:

• The Constitution does not fix a specific tenure for SFC members.
• The tenure is determined by the State Legislature through an Act. Typically, this tenure is specified in the relevant State Finance Commission Act.
• Unlike central bodies, there is no constitutional provision for a fixed tenure of five years for SFC members.

Re-appointment Eligibility:

• Members of the State Finance Commission are generally eligible for re-appointment after their term concludes.
• This provision allows for continuity and leverages the experience of existing members.

Constitutional Basis:

• The establishment and functions of the State Finance Commission are primarily guided by Article 243-I and Article 243-Y of the Constitution of India.
• These articles empower the Governor to constitute an SFC for every five years, similar to the Finance Commission at the Union level, to review the financial position of Panchayats and Municipalities.