As a legislative and quasi-judicial body, Article 280 of the Constitution of India provides for a Finance Commission. It is founded every fifth year or earlier by the President of India, as he deems appropriate.

More about Finance Commission:

The Finance Commission shall consist of a Chairman and four additional members to be named by the President. For such a time as the President determines in his decree, they retain office.  They are eligible for reappointment.

The chairman should be a person with public affairs experience and the four other members should be chosen from the following:

• A high court judge or one who is eligible to be named as one.
• An individual who has professional knowledge of government finance and accounts.
• A person with extensive experience in financial matters and administration.
• A person with special knowledge of economics

The Commission shall send its report to the President, who shall submit it to both the Houses of Parliament, along with an explanatory memorandum concerning the action taken on its recommendations.

The recommendations made by the Finance Commission are advisory only and, thus, not binding on the government.