Ninth Finance Commission
The Ninth Finance Commission of India was set up in June 1987 under the chairmanship of Mr. N.K.P Salve. Members. The members of the Commission were: Terms of Reference. The Commission was asked to adopt a normative approach in assessing the receipts and the expenditures on the revenue account not only of the states but also of the centre with due regard to the special problems of each state and the special requirement of the central government. Generating surpluses on revenue account of both the states and centre for capital investment should also be considered. Changes in  the principles that govern the distribution between the union and the states and also the states inter-se of the net proceeds of central taxes are to be made The commission will also make recommendations regarding the principles which should govern the grants in aid of the revenue of the state out of the Consolidated Fund of India. It is to assess the debt position of the states as on 31 March 1989 and suggest corrective measures. In regard to the financing of the relief expenditure by the states affected by natural calamities the commission is to examine the feasibility  of establishing a National Insurance Fund to which the state governments may contribute a percentage of their revenue receipts. The government's decision to accept all the major recommendations of this commission which would bring substantial benefits to the state during the eighth five-year plan period (especially in relation to debt relief) shows the upper hand enjoyed by this body.