Finance Commission of India - The Finance Commission (Miscellaneous Provisions) Act, 1951

The Finance Commission (Miscellaneous Provisions) Act, 1951

With the objective of giving a structured format to the Finance Commission of India and to bring it at par with world standards, The Finance Commission (Miscellaneous Provisions) Act, 1951 was passed. It lays down rules regarding qualification and disqualification of members of the Commission, their appointment, term, eligibility and powers.

• Qualifications of the members

The Chairman of the Finance Commission is selected among people who have had the experience of public affairs. The other four other members are selected from people who:

1. Are, or have been, or are qualified, as judges of High Court, or
2. Have knowledge of Government finances or accounts, or
3. Have had experience in administration and financial expertise; or
4. Have special knowledge of economics

• Procedure and Powers of the Commission

The Commission has the power determine their own procedure and:

1. Has all powers of the civil court as per the Court of Civil Procedure, 1908.
2. Can summon and enforce the attendance of any witness or ask any person to deliver information or produce a document, which it deems relevant.
3. Can ask for the production of any public record or document from any court or office.
4. Shall be deemed to be a civil court for purposes of Sections 480 and 482 of the Code of Criminal Procedure, 1898

• Disqualification from being a member of the Commission

A member may be disqualified if:

1. He is mentally unsound;
2. He is an undischarged insolvent;
3. He has been convicted of an immoral offence;
4. His financial and other interests are such that it hinders smooth functioning of the Commission.

• Terms of Office of Members and eligibility for Reappointment

Every member will be in office for the time period as specified in the order of the President, but is eligible for reappointment provided he has, by means of a letter addressed to the President, resigned his office.

• Salaries and Allowances of the members

The members of the Commission shall provide full- time or part- time service to the Commission, as the President specifies in his order. The members shall be paid Salaries and Allowances as per the provisions made by the Central Government. So far, 13 Finance commissions have submitted their recommendations. More or less, all of them have been accepted by the Union Government.