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Under Article 280, the Finance Commission is constituted by the President every ______ years to recommend distribution of tax revenues between Union and States and grants-in-aid principles.
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Answer: 5
Finance Commission institutional design: (a) Constitutional mandate: Article 280 requires President to constitute FC every 5 years (or earlier), (b) Composition: Chairman + 4 members with expertise in public affairs, finance, economics, administration, law, (c) Functions: (i) Recommend vertical devolution (Union-State tax share), (ii) Horizontal distribution (among States using criteria like population, area, income distance), (iii) Grants-in-aid to States in need, (iv) Augment State Panchayat/Municipality funds, (d) Impact: FC recommendations shape fiscal federalism; 15th FC (2020-25) recommended 41% devolution, new criteria (demographic performance, tax effort). Illustrates institutionalized fiscal federalism: regular, technical mediation of Centre-State financial claims to balance equity and efficiency.