to make recommendations to the president about the distribution of the net proceeds of taxes between the Union and States and also the allocation of the same among the States themselves. It is also under the ambit of the finance commission to define the financial relations between the Union and the States. They also deal with the devolution of unplanned revenue resources. Functions Distribution of 'net proceeds' of taxes between Center and the States, to be divided as per their respective contributions to the taxes. Determine factors governing Grants-in-Aid to the states and the magnitude of the same. To make recommendations to the president as to the measures needed to augment the 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. Any other matter related to it by the president in the interest of sound finance. The Finance Commission (Miscellaneous Provisions) Act, 1951 The Finance Commission (Miscellaneous Provisions) Act, 1951 was passed to give a structured format to the finance commission and to bring it to par with world standards, by laying down rules for the qualification and disqualification of members of the commission, and for their appointment, term, eligibility and powers. Qualifications of the members The chairman of a finance commission is selected from people with experience of public affairs. The other four members are selected from people who: Are, or have been, or are qualified, as judges of a high court, Have knowledge of government finances or accounts, or Have had experience in administration and financial expertise; or Have special knowledge of economics Disqualification from being a member of the commission A member may be disqualified if: He is mentally unsound; and as follows- He is an undischarged insolvent; He has been convicted of an immoral offence; His financial and other interests are such that it hinders the smooth functioning of the commission. Terms of office of members and eligibility for reappointment Every member will be in office for the time period as specified in the order of the President, but is eligible for reappointment provided he has, by means of a letter addressed to the president, resigned his office. Salaries and allowances of the members The members of the commission shall provide full-time or part-time service to the commission, as the President specifies in his order.