The Seventh Finance Commission of India was incorporated in 1978 consisting of Shri J. M. Shelar as the chairman.

The members of the Commission were:^[1]

• Shri J. M. Shelat, Chair
• Dr. Raj Krishna
• Dr. C. H. Hanumantha Rao
• Shri. H. N. Ray
• Shri. V. B. Eswaran, Member Secretary

• The share of the states in the net proceeds should be raised to 85% excepting the share of the Union Territories which would be 2.19% of net proceeds
• The inter se distribution between the states should include 10% contribution factor and rest 90% would be on basis of population. The 10% allotment would be based on the State-wise net assessments

• Sansar Singh Janjua (1999). Centre State Financial Relations in India and Finance Commission. New Delhi, India: Anmol Publications. ISBN 8126102233.
• "Finance Commission India". New Delhi, India: Fourteenth Finance Commission. Retrieved 22 July 2017.