Finance Commission And Planning Commission Of India

Difference between Finance Commission and Planning Commission of India by Pupas Mondale Difference Get cricket scores fast No need to scroll through results. Get instant answers from Google. Difference between Finance Commission and Planning Commission of India! There has been serious debate in the country regarding the role of the Finance Com mission visas the Planning Commission. Finance Commission is a Constitutional body whereas the Planning Commission is a nonstarter institution.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Over a period of time, the working of both the institutions led to friction among them u to lack of clearest guidelines demarcating their areas of work. Scrutiny of plan expenditure and transfer of capital to the states have been left to the Planning Commission. This has led to a number of practical problems. The relative roles of the Planning Co mission and Finance Commission have come to be demarcated in the terms of reference of the Finance Commission.

The Finance Commission assesses the monoplane requirements of the State Governments and recommends a share in the net yield from the Central and Grants aid. The delegable sum of Central taxes Is distributed Inter SE among the states based on Independent criteria. This lead to a situation where many states experience non plan revenue surplus after receiving the devolution and that surplus Is supposed to be used by them for plan purpose.

But that Is not the Job of the Finance Commission. It is left to t he planning Commission to take It Into account while assessing the states resources for state plans. The Planning Commission finds it very difficult to fill the shortfall in the states finance l resources for plan purpose because of the limited budgetary support provided by the Central Government for the total public sector plan. Consent intently, the plan expenditure becomes a casualty. /26/201 5 The various Finance Commissions have generally adhered to the criteria, for grants aid to the States, that this popularly come to be known as the Agile formula (after the name of former Deputy Chairman of the Planning Commission on), that takes into account in variable proportions the population of the State, developmental performance, budgetary deficit, etc. We will tabulate the difference between finance commission and planning commission n, which are as follows.