Difference between pay commission and finance commission
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There has been serious debate in the country regarding the role of the Finance Commission vis-a-vis the Planning Commission. Finance Commission is a Constitutional body whereas the Planning Commission is a non-statutory institution.
Over a period of time, the working of both the institutions led to friction among them due to lack of clear-cut guidelines demarcating their areas of work. Scrutiny of plan expenditure and transfer of capital to the states have been left to the Planning Commission.
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