Question

Which of the following statements regarding the term and reappointment of SFC members are correct?

1. The term of office for each member is constitutionally fixed for five years.

2. The Governor specifies the term of office for each member in the appointment order.

3. Members of the State Finance Commission are eligible for re-appointment.

• A. 1 & 2
• B. 2 & 3
• C. 1 & 3
• D. All are correct

Answer 1

Answer:

B. 2 & 3

State Finance Commission (SFC) - Term and Reappointment

• Constitutional Basis: Article 243I of the Constitution of India provides for the establishment of a Finance Commission by the Governor of a State.
• Term of Office: The Constitution does not specify a fixed term for SFC members. The term is determined by the Governor at the time of their appointment.
• Governor's Discretion: The Governor has the authority to specify the term of office for each member of the State Finance Commission through the appointment order.
• Eligibility for Re-appointment: Members of the State Finance Commission are eligible for re-appointment, meaning they can serve another term after their current term expires.
• SFC's Role: SFCs are constitutional bodies tasked with making recommendations to the Governor on various financial matters concerning the state and its local bodies, including the distribution of taxes, grants-in-aid, and measures to improve the financial position of Panchayats and Municipalities.
• Frequency of SFC: Generally, an SFC is constituted every five years, but this is not a rigid rule, and the Governor can constitute it earlier if deemed necessary.
• Appointment Process: The appointment of the Chairman and members of the SFC is made by the Governor.