Question

Which of the following statements about the composition of the Finance Commission are correct?

1. The Chairman of the Finance Commission must have experience in public affairs.

2. One member must be qualified to be a High Court judge.

3. The President determines the tenure of Finance Commission members.

4. All members must have specialized knowledge of economics.

• A. 1, 2, and 3
• B. 1 and 4
• C. 2 and 4
• D. 1 and 3

Answer 1

Answer:

A. 1, 2, and 3

Finance Commission:

• The Finance Commission is a constitutional body established under Article 280 of the Constitution of India.

• Its primary role is to recommend the distribution of financial resources between the Union and the States, and among the States themselves.

• The Chairman of the Finance Commission must be a person with experience in public affairs. This broad criterion allows for individuals with significant administrative or legislative backgrounds.

• Of the other members, at least one must be a person who is, or has been, or is qualified to be appointed as a Judge of a High Court. This ensures judicial scrutiny and understanding of financial legalities.

• The President of India has the power to determine the qualifications and method of selection of members of the Finance Commission. This includes determining their tenure.

• While specialized knowledge in economics is desirable and often possessed by members, it is not a mandatory qualification for all members. The composition aims for a diverse expertise, including finance, law, and public administration.

• The Finance Commission typically consists of a Chairman and four other members.

• The recommendations of the Finance Commission are advisory in nature, but they carry significant weight with the government.