The primary functions of the Finance Commission are outlined in Article 280. These include:
- Distribution of Taxes: The Commission recommends the distribution of net proceeds of taxes between the Union and the States, and also among the States themselves.
- Grants-in-Aid: It recommends the principles governing the grants-in-aid to the States out of the Consolidated Fund of India.
- Other Matters: The Commission also examines and makes recommendations on any other matter relating to finance that the President may refer to it.
