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The Ninth Finance Commission of India was set up in June 1987 under the chairmanship of Mr. N.K.P Salve.

Members

The members of the Commission were:

• Shri N.K.P. Salve, Chairman
• Shri Justice Abdus Sattar Qureshi
• Dr. Raja J. Chelliah
• Shri Lal Thanhawla, resigned on 24 January 1989
• Shri Mahesh Prasad, Member Secretary, resigned during the term of the Commission
• Shri S. Venkitaramanan, joined in place of Shri Lal Thanhawla on 3 May 1989
• Shri Venkitaramanan, resigned as Member of the Finance Commission on his appointment as Adviser to the Government of Karnataka
• Shri R. Keishing, assumed charge as part-time Member of the Commission with effect from 25 November 1989.
• Shri K.V.R. Nair, appointed as Member Secretary in place of Shri Mahesh Prasad from 13 July 1989

Terms of Reference

The Commission was asked to adopt a normative approach in assessing the receipts and the expenditures on the revenue account not only of the states but also of the centre with due regard to the special problems of each state and the special requirement of the central government. Generating surpluses on revenue account of both the states and centre for capital investment should also be considered. Changes in the principles that govern the distribution between the union and the states and also the states inter-se of the net proceeds of central taxes are to be made

The commission will also make recommendations regarding the principles which should govern the grants in aid of the revenue of the state out of the Consolidated Fund of India. It is to assess the debt position of the states as on 31 March 1989 and suggest corrective measures. In regard to the financing of the relief expenditure by the states affected by natural calamities the commission is to examine the feasibility of establishing a National Insurance Fund to which the state governments may contribute a percentage of their revenue receipts. The government's decision to accept all the major recommendations of this commission which would bring substantial benefits to the state during the eighth five-year plan period (especially in relation to debt relief) shows the upper hand enjoyed by this body.

Recommendations

• Income Tax – 85% of the divisible pool of the income tax to be assigned to the state and out of the net distributable proceeds a sum equal to 1.437% should be deemed to represent the proceeds attributable to the Union Territories.
• Relief Funds – The existing arrangements to be replaced by a new order under which the states will have greater autonomy and accountability. A calamity relief fund to be constituted for each state to which contribution is to be made in the ratio 75:25 (centre: state).
• Debt Relief – The Commission recommended that the Reserve Bank of India may work out a formula for amortization of the states’ market borrowings. From 1990 to 1991 the direct central loans for states’ plans should have a maturity period of 20 years with 50% of the loans enjoying a grace period of 5 years. The loans given to the federating states for drought relief during 1986–89 as outstanding on 31 March 1989 are to be waived. The state plan loans advance to the states during the 1984–89 period and outstanding on 31 March 1990 should be consolidated, rescheduled to 15 years in the case of all the states.

References

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

Further References

• Sansar Singh Janjua (1999). Centre State Financial Relations in India and Finance Commission. New Delhi, India: Anmol Publications. ISBN 8126102233.
• "Finance Commission India". New Delhi, India: Fourteenth Finance Commission. Retrieved 22 July 2017.

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)
Finance commissions	1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th

• Finance Commission of India
• 1987 establishments in India