Who among the following was the Chairman of the First Finance Commission of India?
- (a)Shri. Santhanam
- (b)Shri. K. C. Neogy
- (c)Dr. Raj Mannar
- (d)Shri. A. K. Chanda
Correct — B, K. C. Neogy. The First Finance Commission of India was constituted on 22 November 1951 under Article 280 of the Constitution, with Kshitish Chandra Neogy as its Chairman. Neogy — a veteran Congress leader, a member of the Constituent Assembly and a former Union Minister — headed the Commission, which submitted its report in 1952 covering the period 1952–57. Its task was to recommend how the net proceeds of divisible taxes should be shared between the Union and the States and the principles governing grants-in-aid. Hence the Chairman of the First Finance Commission was K. C. Neogy.
- (a)Shri. Santhanam — Wrong — K. Santhanam chaired the SECOND Finance Commission (constituted 1956), not the first. He is a genuine Finance Commission chairman, which makes him a tempting distractor, but one Commission too late.
- (c)Dr. Raj Mannar — Wrong — Dr. P. V. Rajamannar (here spelt 'Raj Mannar'), an eminent jurist, chaired the FOURTH Finance Commission (constituted 1964), not the first.
- (d)Shri. A. K. Chanda — Wrong — A. K. Chanda chaired the THIRD Finance Commission (constituted 1960). Like the other names he led a later Commission, not the inaugural one of 1951.
The Finance Commission is a constitutional body set up under Article 280, normally every five years, to recommend the sharing of Union tax revenues between the Centre and the States (vertical devolution), the inter-se distribution among States (horizontal devolution) and the principles of grants-in-aid to States. The First Finance Commission was constituted in 1951 under the chairmanship of K. C. Neogy and reported for the 1952–57 period.
All four options are real Finance Commission chairmen, so the question is purely about order. The reliable anchor is the chairmen sequence of the first four Commissions — Neogy (1st), Santhanam (2nd), Chanda (3rd), Rajamannar (4th). Locking 'First = Neogy, 1951' immediately eliminates the other three, each of whom headed a later Commission.
- First Finance Commission: constituted 22 November 1951 under Article 280; Chairman K. C. Neogy; report covered 1952–57.
- Chairmen order: 1st K. C. Neogy, 2nd K. Santhanam, 3rd A. K. Chanda, 4th Dr. P. V. Rajamannar.
- The Finance Commission recommends Centre–State tax devolution and the principles of grants-in-aid (Article 280).
- It is a constitutional (not statutory) body, generally appointed every five years by the President.
The First Finance Commission (1951) was chaired by K. C. Neogy; the other three names in the options each chaired a later Commission.
- Assuming a famous name like Santhanam or Rajamannar chaired the first Commission — all four listed chaired a Commission, but only Neogy the first.
- Confusing the Finance Commission (Article 280, constitutional) with the Planning Commission.
UPPSC and UPSC ask this as a 'who was the first chairman' recall or, a layer deeper, on the Finance Commission's Article-280 mandate (tax devolution and grants-in-aid) — know the early chairmen order and the constitutional function.
The primary function of the Finance Commission in India is to
- (a) distribute revenue between the Centre and the States
- (b) prepare the Annual Budget
- (c) advise the President on financial matters
- (d) allocate funds to various ministries of the Union and State Governments
Answer(a) distribute revenue between the Centre and the States
Same body — UPPSC asks who chaired the FIRST Finance Commission, UPSC tests its core Article-280 function (Centre–State revenue distribution); both reward knowing the Finance Commission of India.
Consider the following statements: The function(s) of the Finance Commission is/are 1. To allow the withdrawal of money out of the Consolidated Fund of India. 2. To allocate between the States the shares of proceeds of taxes. 3. To consider applications for grants-in-aid from States. 4. To supervise and report on whether the Union and State governments are levying taxes in accordance with the budgetary provisions. Which of these statements is/are correct?
- (a) Only 1
- (b) 2 and 3
- (c) 3 and 4
- (d) 1, 2 and 4
Answer(b) 2 and 3
Same institution, one layer deeper — UPSC tests exactly what the Finance Commission does (allocating tax shares among States and considering grants-in-aid), reinforcing the Article-280 body UPPSC's chairman question is built on.
- practice — not a real PYQ
Under which Article of the Constitution is the Finance Commission of India constituted?
- (a)Article 280
- (b)Article 275
- (c)Article 356
- (d)Article 324
Answer(a) Article 280 — it recommends the distribution of tax revenues between the Centre and the States and the principles of grants-in-aid.
- practice — not a real PYQ
Who was the Chairman of the Fifteenth Finance Commission of India?
- (a)Y. V. Reddy
- (b)N. K. Singh
- (c)Vijay Kelkar
- (d)C. Rangarajan
Answer(b) N. K. Singh — the 15th Finance Commission (award period up to 2025–26) was chaired by N. K. Singh.