Important Commissions Of India – FC, OLC

Finance Commission

The Constitution of India (Article 280) provides for a Finance Commission to recommend mainly the financial transfers from the Union to the States. Article 280 requires that the President of India should appoint the Finance Commission within two years from the commencement of the Constitution and thereafter once in every five years or even earlier, if necessary. It also specifies broadly the terms of reference of the Finance Commission and its composition. Appointment: Although the appointment of the Finance Commission is by an announcement of the Presidential order by the Finance Ministry, it comes into existence from the date of assuming charge by its Chairman and the members and it ceases to exist as soon as it submits its report.

Composition

Article 280 has fixed the total strength. of the Finance Commission by specifying that it should consist of a Chairman and four members, other than the Chairman. However, the Constitutional provisions under Article 280, has left to the Parliament the power to prescribe the qualifications of the Chairman and other members of the Finance Commission as also the procedures for their appointment and the work of the Finance Commission.

The Finance Act 1951, Section (3) specifies the qualifications for the Chairman and the members. According to the Act. “The Chairman of the Commission shall be selected from among the persons who have had the experience in public affairs and the four other members shall be selected from among persons who:

a). Are or have been, or qualified to be appointed as Judges of High Court, or

b) Have special knowledge of the finance and accounts of the Government; or

c) Have had wide experience in financial matters and administration; or Have special knowledge of economics.

Terms of Reference of the Finance Commission

Article 280(3) lays down the following broad terms of references: “It shall be the duty of the Finance Commission to mark recommendations to the President, as to a) The distribution between the Union and the States of the net proceeds of taxes which are to be, or maybe divided between them under this chapter and the allocation between the States of the respective shares of such proceeds. The principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India The continuance or modification of the terms of any agreement entered into by the Government of India with the Government of any State specified in Part ‘B’ of the First Schedule under clause (1) of Article 278 or under Article 306; and Any other matter referred to the Commission by the President in the interest of sound finance.”

The Commission may assess the debt position of the States and suggest corrective measures as deemed necessary keeping in view the financial requirements of the Centre. The Commission may also review the policy and arrangement regarding the financing of relief expenditure by the States affected by natural calamities, and suggest modifications as it considers appropriate in the existing arrangements having, regard, among other considerations, to the need for avoidance of wasteful expenditures. In this connection, the Commission is asked to examine, inter alia, the feasibility of establishing a national insurance fund to which the State Governments may contribute a percentage of their revenue receipts.

Recommendations

The recommendations of the Finance Commissions can be grouped under the following three headings:

1) Division and distribution of taxes and duties of which the main have been Union Income Tax (other than agricultural Income Tax and corporate taxes), Central Excise Duties, Additional Excise Duties, and the Estate Duty.

2) Grants-in-aid to States.

3) Union Loans to States.

Official Languages Commission

Article 344 of the Constitution provides for the constitution of the Official Languages Commission after 5 years from the commencement of the Constitution and thereafter every 10 years by an order of the President. The Commission shall comprise a chairman and such other members representing the different languages as the President may decide. President also decides the procedure required to be followed by the Commission. Functions: It is the duty of the Commission to make recommendations to the President on the following points:

1. The progressive use of the Hindi language for the official purposes of the Union.

2. Restrictions on the use of the English language for all or any of the official purposes of the Union.

3. The language to be used for all or any of the following purposes, viz., proceedings of the Supreme Court and the High Courts, the text of Bills to be introduced into Parliament or State Legislatures, the texts of the Acts passed by the Indian Legislatures and also the text of the orders, rules, and regulations of the Government.

The numerals to be used for anyone or more specified purpose of the Union. Any other matter referred to the Commission by the President. While making its recommendations the Commission shall have due regard to the industrial, cultural and scientific advancement of India and the just claims and the interests of persons belonging to the non-Hindi speaking areas regarding the public services. The recommendations of the Commission is required to be examined by a Committee consisting of 30 members, of whom 20 shall be the members of the Lok Sabha and 10 members of the Rajya Sabha. It will be the duty of the Committee to examine the recommendations of the Commission and to report to the President their opinion on the same.

Here are some notes on Other Important Authorities.

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