Parliamentary Debates. Parliament of India. Official Report. Friday 4th May 1951. Part II - Proceedings Other Than Questions and Answers

The Minister of Finance (Shri C. D. Deshmukh): The Expert Committee which the Constituent Assembly set up to consider the financial provisions of the Draft Constitution recommended the setting up of a Finance Commis- sion for the purpose of advising the Government in regard to the distribu- tion of revenues between the Centre and the States and applications for assistance from the States. [...] The members of the Commission will he appointed by the President with due regard to the qualifications uses- eribe. c1 by the Bill, and the condd. ons of service, salaries and allowance:- of the members will be regulated by ryes to he made by the Central Govern-Ill:mt. [...] the Finance Minister has ex- plained to the House the reason for bringing forward this Bill, and the recommendations made with regard to the qualifications of the Members of the Finance Commission by the Ex- pert Committee. [...] The Commission should consist of persons with an in- dependent and detached outlook, who will try to allocate the proceeds of the divisible taxes and to deal with the requests of the State Governments for financial assistance in such a way as to promote to the best possible extent the interests of the country as a whole. [...] They are definitely stated to be the allocation of the divisible sources of revenue as between the Centre and the States, and recommendations as regards the distribution of grants-in- aid by the Centre to the States.