Important Legal Definitions
Explore legal terms, clear definitions and practical examples.
Finance Commission (Article 280)
Constitutional & Public Law Doctrines
Definition
A quasi-judicial constitutional body constituted every five years by the President to recommend the equitable distribution of net tax proceeds between the Union and the States and the allocation among the States.
Example
The Union Government transfers tax revenues from the central divisible pool to state treasuries based on the statutory devolution formula recommended by the 15th Finance Commission.