The first State Finance Commission was constituted in 1951 under the chairmanship of K. Santhanam.

The primary function of the State Finance Commissions is to make recommendations on the distribution of financial resources between the State and the local governments.

As of 2023, 15 State Finance Commissions have been constituted in India.

The Twelfth State Finance Commission was headed by N.K.P. Salve.

The Thirteenth State Finance Commission recommended the introduction of Goods and Services Tax (GST).

The term of office of a State Finance Commission is two years.

The Governor of the State appoints the members of a State Finance Commission.

There are 5 members in a State Finance Commission.

A State Finance Commission consists of a Chairman, two members from the State Government, and two independent members.

The State Finance Commissions consider all of the above factors while making recommendations.

The recommendations of the State Finance Commissions are binding on both the State Government and the Local Governments.

The State Finance Commissions play a significant role in ensuring financial equity between the State and the local governments, promoting fiscal discipline and accountability, and facilitating the effective utilization of financial resources.

The State Finance Commissions face a number of challenges, including political interference, lack of adequate data, and limited resources.

There are a number of suggestions for improving the functioning of the State Finance Commissions, including ensuring their independence and autonomy, providing them with adequate resources, and improving the quality of data available to them.