The fifteenth Finance Commission headed by N.K. Singh will submit its report on 9 November  2020.

 The report has been finalised for the period 2021-22 to 2025-26, after consultations with the Centre and State Governments, local governments, chairman and members of the previous commissions and other experts and other academic institutions in the country.

 The Commission was constituted by the President under the leadership of  N.K. Singh,  Member of Parliament and former Secretary to the Government of India. Other members include Ajay Narayan Jha, Prof. Anoop Singh, Dr. Ashok Lahiri and Dr. Ramesh Chand.

The Commission was constituted on 27 November, 2017 under Art 280 of the Constitution to evaluate the state of finances of the Union and State and to recommend the sharing of the taxes between them and suggest principles  on distributions of taxes for the period 2020-21 to 2024-25.

As per the notification issued by the Ministry of Finance, the Commission will also consider proposing performance based incentives for states in many areas including provision of grants in aid to the local bodies for basic services, progress made in sanitation, solid waste management and bringing in behavioural change to end open defecation.

The Commission may review the present arrangements on financing Disaster Management initiatives with reference to the funds constituted under the Disaster Management Act, 2005 and make appropriate recommendations.

  Some of the key recommendations of the Commission include the viability of creating a separate defence and national security fund and a guaranteed compensation for revenue losses due to implementation of the GST for a period of five years.

The Commission will be using the population data of 2011 while making the recommendations.

Many politicians including chief ministers and finance ministers from the South opposed this as it would reduce the share of tax revenue because of its shrinking population as that of the North since 1971.

In 2018, Finance Ministers of Kerala, Karnataka, Andhra Pradesh and Union Territory of Puducherry met at a conclave at Thiruvananthapuram and denounced the Commission’s terms of reference as it contradicts with the principles of federalism.

Life Is a Journey

Always Connect With Us

Always connect with us for your queries and travel related informations which may help you to your destination.

    © 2024 Travel. All rights reserved. SWAP IT Solutions