Articles 270, 273, 275 and 280 of the Constitution of Indiarovide for the constitution of a Finance Commission to recommend to the President certain measures relating to the distribution of financial resources between the Union and the States.

The recommendations of Finance Commission pertain to the followings:

1. The distribution between the Union and the States of the net proceeds of taxes which are to be, or may be, divided between them and the allocation between the States of the respective shares of such proceeds.

2. The principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India

3. Any other matter preferred to the Commission by the President in the interests of sound finance, which are indicated as Term of Reference.

So far, there have been thirteen Finance Commissions:

The First FC was constituted in 1951 with Shri Neogy as the Chairman, it submitted its reports in 1953. Its recommendations included- 5 percent of the net proceeds of income tax shall be assigned by the Union to the States and that it shall be distributed among the States; and provided guidances to the Government of India in the matter of making grants-in-aid.

The Second FC was constituted in 1956 and submitted its reports in 1957. The Chairman was Sri Santhanam.

The Third FC was constituted in 1960 and submitted reports in 1962. Sri AK Chanda was its Chairman.

The Fourth FC was headed by Dr.Rajamannar and it was constituted in 1964.

The Fifth FC was headed by Sri Mahavir Tyagi. It was constituted in 1968 and submitted reports in July 1969. It recommended that the States` share of income tax should be raised to 75 percent and of Union Excise duties to 20 percent For the first time.

The Sixth FC was required to deal with debt position of the states and their non-plan capital gap. It was headed by Sri Brahmananda Reddy, and submitted report in October, 1973.

The Seventh FC was constituted in June 1977 with Sri Shelat as Chairman. It submitted report in October, 1978.

The Eight Finance Commission was constituted in 1982 with Shri YB Chavan, ex-Minister as Chairman. It submitted its report in 1984. But its recommendations on granting moneys to the states were not implemented by the Government of Indiaon the ground of financial difficulties and late receipt of the Commission's Report. It was the first Finance Commission for Mizoram state.

The NINTH FC headed by Shri NKP Salve submitted its report in 1988 and 1989.

The TENTH FC was constituted on 16/6/1992. Its Chairman was KC Panth.

The ELEVENTH FC The TWELFTH FC headed by Dr. R. Rangaranjan submitted its report covering for the period 2005-06 to 2009-10.

The THIRTEENTH FC headed by Dr. Vijay Kelkar was constituted in November 2007, and submitted its report by December 2009.

The FOURTEENTH FC headed by Y.V Reddy was constituted in 2nd January 2013, and submitted its report by 15th December, 2014.

The FIFTEENTH FC headed by N.K Singh was constituted in November 2017, and expected  to submit its report by the end of 2019.