Essay on finance

An essay on finance can be one very wide and long issue and as such, if you are required to write one, it is good that one selects a specific subtopic such as the finance commission.

The finance commission exists in the constitution to define the financial relations between the various states and the center. Within the provision of article 280 within the constitution, the president is tasked with the role of appointing a finance commission that is to perform the specific role of devolution of revenue sources that are non-plan.

The functions of the commission are to advice the president on many issues including the distribution of the divisible net proceeds of taxes between the various states. The other important area where this commission plays an advisory role to the president is the area of principles that guide the grants-in-aid of the revenues of the states from the consolidated fund of a state to supplement the municipalities.

The commission also has the task of reviewing the financial status of the various states and of the union and afterwards, to suggest a plan by which the government will restructure the public finances, restore budgetary balances and therefore achieve macro-economic stability and the restructuring of debts in line with the nation’s equitable growth.

At its stands today, eleven finance commissions have been appointed and these have in turn been submitting their recommendations to the president. The first of these finance commissions was set up in the 1950s, in particular in 1951 and its chairman then was Mr. C. Niyogi. This fits commission submitted its report that included recommendations to the president in 1952.