Question

Regarding the composition and qualifications of the Central Finance Commission, which of the following statements is accurate?

i. The Constitution itself specifies that the chairman must be a former judge of the Supreme Court.
ii. Parliament is authorized to determine the qualifications, and it has specified that one of the four members must have specialized knowledge of economics.
iii. Members of the commission hold office for a fixed term of five years and are not eligible for reappointment.
iv. The commission is composed of a chairman and five other members, all selected by a collegium and appointed by the President.

• A. Only ii
• B. Only i and iii
• C. Only ii and iv
• D. All the above (i, ii, iii and iv)

Answer 1

Answer:

A. Only ii

Central Finance Commission: Composition and Qualifications

• The Finance Commission is a constitutional body established under Article 280 of the Indian Constitution.
• Its primary role is to advise the President on the distribution of financial resources between the Union and the States, and among the States themselves.
• Chairman Qualification: The Constitution does not mandate that the Chairman must be a former judge of the Supreme Court. However, traditionally, individuals with experience in public affairs and economics have been appointed as Chairmen.
• Member Qualifications: Parliament, through the Finance Commission (Miscellaneous Provisions) Act, 1951, has the power to prescribe the qualifications of the members.
• The Act specifies that one of the four members must have specialized knowledge of economics. The other members are typically individuals with experience in finance, administration, or law.
• Term of Office: Members of the Finance Commission hold office at the pleasure of the President. The Constitution does not specify a fixed term of five years. They are eligible for reappointment.
• Selection and Appointment: The Chairman and members are appointed by the President of India, not by a collegium.
• Number of Members: The Finance Commission typically consists of a Chairman and four other members, making a total of five members.