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Article 280: Finance Commission

Provides for the Finance Commission, its constitution by the President, and its recommendations on distribution of financial resources.

Part XIIactive

In this article

What it means

Plain-language explanation

Where you notice it

Daily civic life

How it protects you

Citizen protection

What to remember

Exam and recall pointers

What it means

Simple explanation

Article 280 creates the Finance Commission to recommend how Union and State finances should be shared.

Practical daily-life use

Where citizens notice it

  • Relevant to tax devolution, grants, and fiscal federalism.
  • Helps explain how States receive financial support from the Union framework.

How it protects you

Citizen protection context

  • Supports balanced public finance across the Union and States.
  • Helps fund public services through constitutional fiscal recommendations.

Example situations

General civic examples

  • A Finance Commission recommends tax devolution percentage.
  • A State receives grants based on Commission recommendations.

Citizen note

Learning note

Finance Commission recommendations influence public finance but are implemented through government decisions and budgets.

Exam pointers

What to remember

  • Finance Commission is constituted under Article 280.
  • It is central to fiscal federalism.

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Source references

Verification basis

Last reviewed against official sources: 2026-05-20.