---
title: "Finance Commission of India: Article 280 | Model Diplomat"
description: "The Finance Commission of India, established under Article 280, recommends tax revenue distribution between the Union and states every five years."
url: "https://modeldiplomat.com/learn/glossary/finance-commission-of-india"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- The Finance Commission of India is a constitutional body constituted every five years under Article 280 to recommend the distribution of tax revenues between the Union and the states.
- Are the Finance Commission's recommendations binding on the Government of India?
- How does the Finance Commission differ from the former Planning Commission and NITI Aayog?
- Why do southern states object to the Finance Commission's devolution formula?
- What is the difference between vertical and horizontal devolution?

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In November 2020, the Fifteenth Finance Commission chaired by N. K. Singh recommended devolving 41 percent of the divisible pool of central taxes to the states for 2021–26, down from the Fourteenth Commission's 42 percent.

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