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The First Finance Commission of India was appointed in 1951, for the period 1952-57 by the President of India and was chaired by K.C Neogy.

Members

• Shri K. C. Neogy, Chairman
• Shri V. P. Menon
• Shri Justice R. Kaushalendra Rao
• Dr. B. K. Madan
• Shri M.V. Rangachari Member-Secretary
• Shri V. L. Mehta

V. P. Menon resigned on 18 February 1952 and was replaced by V. L. Mehta.

Terms of Reference

The commission was asked to make recommendations regarding:

1. Allocations of income tax and Union Excise Duties and tax sharing.
2. Amounts payable as Grants- in-Aid to the States in need of Assistance under the ‘substantive portion of Clause 1 of Article 275’.
3. Grants-in-Aid to certain States in lieu of their share of export duty on jute and jute products according to Article 273
4. Continuation or adjustment of the terms of agreement with Part B States under Article 278 (1) or under Article 306.

Recommendations

• The share of States in the proceeds of income tax was to be 55 per cent.
• The First Commission recommended that shares of States in the Union excise duties be 40 per cent of the proceeds of the tax on three commodities, 25 per cent of the proceeds of the tax on eight commodities and 20 per cent of the proceeds of the tax on 35 commodities, respectively.
• As far as Horizontal Distribution is concerned, overwhelming weightage is given to Population (80%). Only residual weightage of 20% given to contribution.
• No recommendations regarding grants for meeting capital requirements of the state were made by the commission.
• The Commission provided Grants in- Aid (under Article 273) to only four states, namely, Assam Bihar, Orissa and West Bengal. However, Grants were provided to many states under Substantive Portion of Article 275 (1) and under the head of Primary education grants.
• All recommendations made by the commission were accepted by the Union Government.

References

1. "Members of the previous Finance Commissions: First Finance Commission". Fourteenth Finance Commission. Retrieved 22 July 2017.

External links

• http://fincomindia.nic.in

v t e Ministry of Finance (India)
Departments	Economic Affairs Economic Division: Economic Survey Budget Division: Union budget Expenditure Pay Commission 7th Central Pay Commission (CPC) and Defence Forces Sixth Central Pay Commission Revenue Income Tax Department Central Board of Indirect Taxes and Customs Financial Services Pradhan Mantri Jan Dhan Yojana DIPAM Disinvestment in India Disinvestment of Public Sector Units in India DPE Efficient monitoring of the capital expenditure Asset monetisation and financial health of the Central Public Sector Enterprises (CPSEs)
Secretaries	Economic Affairs Rajiv Mehrishi Shaktikanta Das Subhash Chandra Garg Atanu Chakraborty (incumbent) Revenue Shaktikanta Das Ajay Bhushan Pandey Hasmukh Adhia (incumbent) Finance Ratan P. Watal Ashok Lavasa Hasmukh Adhia Ajay Narayan Jha Rajiv Kumar (incumbent)
Finance ministers	R. K. Shanmukham Chetty John Mathai C. D. Deshmukh T. T. Krishnamachari Jawaharlal Nehru Morarji Desai Sachindra Chaudhuri Indira Gandhi Yashwantrao Chavan Chidambaram Subramaniam Hirubhai M. Patel Charan Singh Hemwati Nandan Bahuguna R. Venkataraman Pranab Mukherjee Vishwanath Pratap Singh Rajiv Gandhi N. D. Tiwari Shankarrao Chavan Madhu Dandavate Yashwant Sinha Manmohan Singh Jaswant Singh P. Chidambaram I. K. Gujral Arun Jaitley Piyush Goyal Nirmala Sitharaman (incumbent)
Ministers of state for finance	Nirmala Sitharaman Jayant Sinha Arjun Ram Meghwal Pon Radhakrishnan Anurag Thakur Bhagwat Karad (incumbent) Pankaj Chaudhary (incumbent)
Chief Economic Advisor	JJ Anjaria IG Patel IG Patel VK Ramaswamy Ashok Mitra Manmohan Singh RM Honavar Bimal Jalan Nitin Desai Deepak Nayyar Shankar Acharya Rakesh Mohan Ashok K Lahiri Arvind Virmani Kaushik Basu Raghuram Rajan Arvind Subramanian Krishnamurthy Subramanian V. Anantha Nageswaran (incumbent)
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• 1951 establishments in India
• Finance Commission of India