Question

Consider the following two statements:

Statement I: The Indian Constitution mandates that the State Finance Commission must have one chairman and two members.

Statement II: The chairman or a member must wait for the Governor's acceptance of their resignation before they can demit office.

Which one of the following is correct in respect of the above statements?

• A. Both Statement I and Statement II are correct.
• B. Both Statement I and Statement II are incorrect.
• C. Statement I is correct, but Statement II is incorrect.
• D. Statement I is incorrect, but Statement II is correct.

Answer 1

Answer:

D. Statement I is incorrect, but Statement II is correct.

State Finance Commission (SFC) Composition and Resignation of Members

• The State Finance Commission (SFC) is a constitutional body established to review the financial position of Panchayats and Municipalities and recommend measures to augment the consolidated fund of the State to supplement the resources of the Panchayats and Municipalities.
• Statement I Analysis:
• The Constitution of India does not specify a fixed number of members for the State Finance Commission.
• Article 243-I and 243-Y of the Constitution state that the Governor may by law make provisions with respect to the composition of the State Finance Commission.
• Therefore, the composition, including the number of chairmen and members, is determined by the respective State Legislatures through legislation. It is not mandated to be one chairman and two members by the Indian Constitution itself.
• Statement II Analysis:
• Members of the State Finance Commission, including the chairman, hold office during the pleasure of the Governor.
• However, when it comes to resignation, the procedure is that a member or the chairman submits their resignation to the Governor.
• The resignation is deemed effective only after the Governor accepts it. Until such acceptance, the member or chairman continues to hold office. This is a standard procedure for many constitutional and statutory appointments to ensure a smooth transition and prevent abrupt departures.
• This provision ensures that the functioning of the commission is not disrupted by sudden resignations and that a successor can be appointed in time.