The First Finance Commission of India was appointed in 1951, for the period 1952-57 by the President of India and was chaired by K. C. Neogy.


V. P. Menon resigned on 18 February 1952 and was replaced by V. L. Mehta.[1]

Terms of Reference

The commission was asked to make recommendations regarding:

  1. Allocations of income tax and Union Excise Duties and tax sharing.
  2. Amounts payable as Grants- in-Aid to the States in need of Assistance under the ‘substantive portion of Clause 1 of Article 275’.
  3. Grants-in-Aid to certain States in lieu of their share of export duty on jute and jute products according to Article 273
  4. Continuation or adjustment of the terms of agreement with Part B States under Article 278 (1) or under Article 306.



  1. ^ "Members of the previous Finance Commissions: First Finance Commission". Fourteenth Finance Commission. Retrieved 22 July 2017.