Finance Commission of India
Constitutional body set up under Article 280 every five years by the President, primarily to recommend the distribution of net proceeds of taxes between the Centre and the States, and the principles governing grants-in-aid to States.
Why UPSC tests this
Tested on Article 280 mandate, terms of reference, distinction from the Inter-State Council, and current 16th Finance Commission (chair, term, key TORs).
Latest from PIB
8 on this page- 4 May 2026Ministry of Panchayati Raj
2- Day National Workshop on Preparation of Panchayat Development Plans (2026–27) to be held in New Delhi
The Ministry of Panchayati Raj is organizing a two-day national workshop in May 2026 to prepare Panchayat Development Plans (PDPs) for 2026-27. The event will see the launch of new booklets and a revamped eGramSwaraj portal. Discussions will cover the 16th Finance Commission grants, aiming to strengthen data-driven, pa…
- 4 Jun 2025Prime Minister's Office
India calls for concrete, time-bound outcomes, and creation of a global facility for catalytic funding with technical assistance & knowledge exchange at Ministerial Roundtable on Disaster Risk Reducti
India, represented by Dr. P. K. Mishra, addressed the Ministerial Roundtable on DRR Financing in Geneva, showcasing its robust national financing model that has grown significantly under the 15th Finance Commission. India highlighted its four-principle approach to DRR financing and called for a dedicated international…
- 15 Apr 2025Ministry of Panchayati Raj
Centre Releases Over ₹15 Crores as XV Finance Commission Grants for Rural Local Bodies in Mizoram
The Union Government released ₹15.20 crores as the first instalment of XV Finance Commission grants for Rural Local Bodies in Mizoram, relating to FY 2024-25 and disbursed in FY 2025-26. These funds, recommended by the Ministries of Panchayati Raj and Jal Shakti and released by the Ministry of Finance, cover all eligib…
- 1 Apr 2025Ministry of Panchayati Raj
Union Government Releases over ₹444 Crores under XV Finance Commission Grants to Rural Local Bodies in Odisha
The Union Government released over ₹444 Crores as Fifteenth Finance Commission grants to Rural Local Bodies in Odisha for FY 2025-26. These grants, recommended by Ministries of Panchayati Raj and Jal Shakti and released by Ministry of Finance, comprise Untied and Tied funds. Untied grants address needs under the Eleven…
- 25 Jul 2024Ministry of Health and Family Welfare
Union Health Minister Shri J P Nadda Chairs High-Level meeting with 8 States/UTs to review the Progress made on TB and Measles-Rubella Elimination and Utilization of funds under PM-ABHIM and 15th Fina
Union Health Minister Shri J P Nadda chaired a high-level meeting to review progress on TB and Measles-Rubella elimination, and fund utilization under PM-ABHIM and the 15th Finance Commission. The Intensified TB-Mukt Bharat Abhiyaan, which screened nearly 13 crore people, has been extended nationwide. The meeting highl…
- 20 Jul 2024Ministry of Health and Family Welfare
Review Meeting of the Medical and Health Department held at the Chief Minister's Residence under the Chairmanship of Union Health and Family Welfare Minister Shri Jagat Prakash Nadda
The Union Health and Family Welfare Minister reviewed the Medical and Health Department's progress, highlighting achievements in maternal and child health and the expansion of key initiatives. Discussions included significant strides under the PM-Ayushman Bharat Health Infrastructure Mission and the adoption of digital…
- 25 Jun 2024Ministry of Panchayati Raj
Over ₹223 Crores Released under XV Finance Commission Grants for Rural Local Bodies in Assam
This PIB release details the allocation of Fifteenth Finance Commission (XV FC) Grants for Rural Local Bodies in Assam for FY 2025-26. It outlines the process of grant recommendation by Ministries of Panchayati Raj and Jal Shakti, and release by the Ministry of Finance. The release distinguishes between Untied and Tied…
- 15 Jun 2024Ministry of Panchayati Raj
PANCHAYATI RAJ INSTITUTION
The Ministry of Panchayati Raj (MoPR) highlighted constitutional provisions for Panchayat financing, including Articles 243H and 280, and the Eleventh Schedule. It noted a significant increase in Central Finance Commission grants from the 13th to the 15th FC. MoPR also detailed initiatives like the Panchayat Revenue En…
Past UPSC Prelims questions on this
- UPSC Prelims 2025economics
Which of the following statements with regard to recommendations of the 15th Finance Commission of India are correct? I. It has recommended grants of Rs. 4,800 crores from the year 2022-23 to the year 2025-26 for incentivizing States to enhance educational outcomes. II. 45% of the net proceeds of Union taxes are to be shared with States. III. Rs. 45,000 crores are to be kept as performance-based incentive for all States for carrying out agricultural reforms. IV. It reintroduced tax effort criteria to reward fiscal performance. Select the correct answer using the code given below.
Practice more on agriculture → - UPSC Prelims 2023economics
Consider the following: 1. Demographic performance 2. Forest and ecology 3. Governance reforms 4. Stable government 5. Tax and fiscal efforts For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population area and income distance?
Practice more on subsidies welfare → - UPSC Prelims 2019polity
In India, which of the following review the independent regulators in sectors like telecommunications, insurance, electricity, etc.? 1. Ad Hoc Committees set up by the Parliament 2. Parliamentary Department Related Standing Committees 3. Finance Commission 4. Financial Sector Legislative Reforms Commission 5. NITI Aayog Select the correct answer using the code given below.
Practice more on planning bodies → - UPSC Prelims 2015polity
With reference to the Fourteenth Finance Commission, which of the following statements is/are correct? 1. It has increased the share of States in the central divisible pool from 32 percent to 42 percent. 2. It has made recommendations concerning sector-specific grants. Select the correct answer using the code given below.
Practice more on constitutional bodies →
Frequently asked
- Under which Article is the Finance Commission constituted?
- Article 280 of the Constitution.
- What is the term of a Finance Commission?
- Each Finance Commission is constituted every five years; its recommendations apply to the five-year period beginning the financial year specified in its terms of reference.
- Are Finance Commission recommendations binding?
- They are recommendatory in nature. The President places them before Parliament along with an Action Taken Report, but the government is not legally bound to accept them.
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See all →Last updated 9 May 2026.