|
 TERMS OF REFERENCE
OF THE FIRST FINANCE COMMISSION
The Commission constituted by an Order dated 22nd November,
1951 listed the functions of the Commission under Article
280 of the Constitution as follows:-
(a) the distribution between the Union and the States of
the net proceeds of taxes which are to be, or may be divided
between them under the provisions of Chapter-I of Part XII
of the Constitution and the allocation between the States
of the respective shares of such proceeds;
(b) the principles which should govern the grants-in-aid
of the revenues of the States out of the Consolidated Fund
of India;
(c) 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;
(d) any other matter referred to the Commission by the President
in the interests of sound finance.
Former Clause (c) has since been deleted and Clause (d) has
now been renumbered as Clause (c).
2. On 6th April, 1952, the Commission was formally requested
to make recommendations to the President in regard to:-
(a) the sums to be prescribed by him as grants-in-aid of
the revenues of the States of Assam, Bihar, Orissa and West
Bengal in lieu of assignment of any shares of the net proceeds
in each year of the export duty on jute and jute products
to these States in accordance with the provisions of Article
273 of the Constitution;
(b) the States in need of assistance and the sums payable
to such States as grants-in-aid of their revenues under
the substantive portion of Clause (1) of Article 275 of
the Constitution.
|