Article 280 provides for a Finance Commission to be constituted by the president every 5th year or earlier as he considers necessary. It is a quasi – judicial body. Constitution envisages FC as the balancing wheel of Fiscal Federalism in India .
FC makes recommendations to the President on the following matters (Art 280) :
FC submits its report to the president , who lays it before both the houses of parliament along with an explanatory memorandum as to the action taken (Art 281).