The correct answer is: 15.
The Finance Commission is a statutory body constituted by the President of India under Article 280 of the Constitution of India to review the financial relations between the Union and the States and to make recommendations to the President on the following matters:
- The distribution of revenues between the Union and the States;
- The grants-in-aid to the States;
- The principles governing grants-in-aid to local bodies;
- The measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats and Municipalities in the State on the basis of the recommendations made by the Finance Commission of the State;
- The measures needed to augment the Consolidated Fund of a State to supplement the resources of the Municipalities in the State on the basis of the recommendations made by the Finance Commission of the State;
- Any other matter referred to the Commission by the President in the interests of sound finance.
The first Finance Commission was constituted in 1951 and the fifteenth Finance Commission was constituted in 2020. The terms of reference of the Finance Commission are determined by the President of India. The Finance Commission submits its report to the President, who places it before both Houses of Parliament. The recommendations of the Finance Commission are not binding on the government, but they are usually accepted.
The Finance Commission plays an important role in the financial relations between the Union and the States. It helps to ensure that the States have adequate resources to meet their expenditure needs. The Finance Commission also helps to promote fiscal discipline among the States.