Here we are sharing some important information about 15th finance commission. The report of the th finance commission, is perhaps more comprehensive than any other report in its analysis of fiscal developments in the country and recommendations on issues not only relevant to intergovernmental finance, but also a variety of issues relating. I he report of the thirteenth finance commission 201015. The present report is aimed at addressing this scenario that demands a multiprong approach including more sensitive and rational judicial womanpower planning. The government of india, with the approval president of india, has constituted fifteenth finance commission. Nov 30, 2015 14th finance commission of india the fourteenth finance commission fcxiv was constituted by the president on 2 january 20 to make recommendations for the period 201520. Report summary the finance commission is a constitutional body formed by the president of india to give suggestions on centrestate financial relations. The 15th finance commission submitted the report of the commission for the financial year 202021 for further action. List of finance commissions and their heads wordpandit. The purpose of this note is to comment on the th finance commission s report with a particular focus on subnational finances. Fourteen 14th finance commission economics study material. Finance commission in its report has given their views on the devolution of tax receipts from the centre to the states from 1st april 2015 to 31st march 2020. The twelfth finance commission tfc under the chairmanship of dr. Read more about misleading to compare devolution suggestions of th and 14th commissions.
Get complete information on twelfth finance commission of. The first finance commission was established by the president of india in 1951 under article 280of the indian constitution. The thirteenth finance commission, interalia, has been mandated to recommend the share. The final report with recommendations for the 2021 26 period will be submitted by october 30, 2020. This is 10 percentage points higher than the recommendation of th finance commission. Press information bureau government of india ministry of. While acknowledging the many plus points of the report. Its report, based on the recommendations of a task force constituted to study the issue, recommends a highly uniform and centralised format that does not adequately recognise a tax reform exercise in a multilevel fiscal system that involves compromises and tradeoffs. The thirteenth finance commission was required to look into the revenue impact of the introduction of the goods and services tax. This is an indication that the enhanced devolution of 42% from 32% might be reversed if the union feels financially constrained.
The finance commission miscellaneous provisions act, 1951 additionally defines the terms of qualification, appointment and. The official website of the federal trade commission, protecting americas consumers for over 100 years. Facilitydcrf and make suitable recommendations thereon. Thirteenth finance commission guidelines department of. Fc has considered the 2011 population along with forest cover, tax effort, area of the state, and demographic performance to arrive at the states share in the divisible pool of taxes. Revenue deficit to be progressively reduced and eliminated, fiscal deficit to be reduced to 3% of the gdp by 201718. Ffc recommends by majority decision that the states share in the net proceeds of the union tax revenues be raised to 42% which is a huge jump from the 32% recommended by the th finance commission. On 5th december 2014, the 14th finance commission presented its report to the union government.
The twelfth finance commission of india was appointed on 1 november 2002 to make recommendations on the distribution of net proceeds of sharable taxes between union and states. List of finance commissions and their heads is an important static gk topic for mba, bank po and other competitive exams. Recommendations of the 15th finance commission insightsias. The commission is headed by former reserve bank of india rbi governor y v reddy. Nov 27, 2010 this special issue on the report of the thirteenth finance commission has eight experts evaluating its recommendations from different perspectives.
Conundrum of conditionalities article pdf available in economic and political weekly xiv48. The first report, consisting of recommendations for the financial year 202021, was tabled in parliament on february 1, 2020. The 14th finance commission report has been accepted by the center,the report has been. Main recommendation of the twelfth finance commission. Nov 27, 2010 the thirteenth finance commission was required to look into the revenue impact of the introduction of the goods and services tax. Earlier, the finance commission was appointed in january 20 to give its report by october 31 this year. It may be acknowledged that the present report is largely driven by the honble supreme court when in the matter of imtiyaz ahmad1 it directed the commission. Twelfth finance commission to bihar recommended actual transfers devolution of central tax grantsinaid total devolution of central tax grantsinaid total total eighth finance commission 1984 89 4005. The fourteenth finance commission had submitted its report to the president pranab mukherjee in december 2014. The share of states in the centres taxes is recommended to be decreased from 42% during the 20152020 period to 41% for 20202021. Recommendations of thirteenth finance commission international. The report of the th finance commission, is perhaps more comprehensive. You can expect at least 1 to 2 questions from list of finance commission and their head in any competitive exams. Government of india law commission of india report no.
Fourteenth finance commission ffc for rural and urban local bodies local bodies grant. The other aspects referred to the 15th finance commission. Mar 02, 2019 the fifteenth finance commission was constituted by a presidential order in november, 2017 under the chairmanship of shri n. About fc composition, functions and objectives, key recommendations. Fcxiii commissioned 29 external and two inhouse studies. This commission is expected to submit its report by november end 2019. Article 275 grant in aid of revenues grantinaidstatutory grantsnonplan grants are to. Demanding an increase in the share of states in centres tax revenue from the current 32% to 42%. The commission submitted its report on 30 november 2004 and covered the period from 200510. The report of the thirteenth finance commission conundrum. Report of the task force on gst th finance commission. The fourteenth finance commission was constituted by the president under article 280 of the constitution on jan. Grant recommended by th finance commission extent of utilization of earlier instalments to determine eligibility for release of subsequent instalments o. The commission recommended that each state be given a share as specified the net proceeds of all shareable union taxes and duties except the expenditure tax and service tax.
Other than tax devolution vertical and horizontal which are specified in percentages, other transfers. The fourteenth finance commission ffc union budget. Its report, based on the recommendations of a task force constituted to study the issue, recommends a highly uniform and centralised format that does not adequately recognise a tax reform exercise in a multilevel fiscal system that involves compromises. The 14th finance commission has recommended a record 10% increase in the states share in the union taxes to 42% as compared to the th finance commission. The difference between th and 14th finance commission and its impact on orissa from a view point. The thirteenth finance commission should be set up at the beginning of 2007 and appropriate and adequate arrangements for the office and residence of the chairman and members of the commission must be made before the appointment of the commission, so that commission s time is not wasted in routine administrative matters. Data for percentage share for certain states is bihar14. May, 2017 the 14th finance commission report has been accepted by the center,the report has been. The commission submitted its report on 30 november 2004 and covered the period from 2005. Recommendations of thirteenth finance comission international. Thirteenth finance commission report of the th finance commission. Report of the thirteenth finance commission, table 12.
The previous 14th finance commission tried to increase the share of census 2011. Pdf critically appraising the recommendations of the thirteenth finance commission, this paper points out that despite some tinkering with one of the. The finance commission was set by president of india in 1951 under article 280. Report of the 11th, 12th and th finance commissions reports. Mar 29, 2018 the finance commission, set up in 1951 under article 280 of the constitution, basically decides how revenue has to be distributed between the centre and the states. The committee, to be headed by chairman of the fc, nk singh, will recommend a debt and fiscal consolidation roadmap for fy21fy25 for the central government, overall states and general government and attempt building up scenarios for public sector enterprises. Thirteenth finance commission to bihar recommended actual transfers devolution of central tax grantsinaid total devolution of central tax grantsinaid total total eighth finance commission 1984 89 4005. The major gainers in per capita terms turn out to be kerala, chhattisgarh and madhya pradesh for gcs and arunachal pradesh, mizoram and sikkim for scs. Report of the thirteenth finance commission 20102015. The commission, besides tax devolution, has recommended as many as 12 different.
The commission was headed by veteran economist of india, c. Challenges for fiscal policy in india francesco giavazzi y april 14, 2011 1 introduction and summary indias th finance commission hereafter fc with no explicit reference to its number was asked by the countrys president to make recommendations in two main areas1. The report of the fifteenth finance commission, along with an action taken report, was recently tabled in parliament. Its main work is to give recommendations on distribution of central tax revenues between the union and the states. The first report, consisting of recommendations for the financial year 202021, was tabled in parliament.
Report of the 15th finance commission for fy 202021. This note presents an overview of the changes to the fiscal architecture in india over the past year, as well as those anticipated in the near future. Are the recommendations of the 14th finance commission unanimous. Highlights of 14th finance commission report february 2015 ficci economic affairs and research division government accepts 14th finance commission recommendation for tax devolution receipts states share in the net proceeds of union tax revenues increased to 42% from 32% earlier. Major recommendations of th finance commission headed by shri vijay. Abstract the th finance commission has forayed into a number of areas partly warranted by its terms of reference and partly due to the approach it adopted. The fifteenth finance commission was constituted by a presidential order in november, 2017 under the chairmanship of shri n. The final report for the period 1 april 2021 to 31 march 2026 will be. Doc major difference between th and 14 th finance. Until the th finance commission, the practice was to use 1971 census data entirely, which was the last census before aggressive family planning initiatives were implemented. The thirteenth finance commission submitted its report in. Singh, members sshri ajay narayan jha, ashok lahiri, ramesh chand, anoop singh and secretary shri arvind mehta of the commission. In a significant departure from earlier finance commissions, the 14th finance commission has removed the distinction between plan and nonplan expenditure to estimate the quantum of transfer to states. Introduction and overview this special issue on the report of the thirteenth finance commission has eight experts evaluating its.
Thirteenth finance commission economic and political weekly. The report is believed to contain a dissent note from planning commission member abhijit sen. Vitta ayoga was established by the president of india in 1951 under article 280 of the indian constitution. Reddy was appointed the chairman of the commission. The horizontal distribution formula of the tfc comprises of four different indicators viz. Rangrajan was appointed on november 1, 2002, to make recommendations regarding the distribution between the union and the states of net proceeds of shareable taxes, the principles which should govern the grantsinaid of the revenues of states from the consolidated fund of india, and the measures needed to augment the. Key recommendations of the 14th finance commission i. The 15 th finance commission was constituted by the president of india in november 2017, under the chairmanship of nk singh. Read more about guidelines for local body grants recommended by the fourteenth finance commission. The 14th finance commission reinforced the idea of the th finance commission to reduce or if possible eliminate revenue deficits. The 14 th finance commission has submitted its report to the president pranab mukherjee. Examining the key recommendations of the thirteenth finance commission that have a. The report of the thirteenth finance commission conundrum in.
Sectorwise projected expenditure for the th finance commission period 201011 to 201415. The finance commission is a constitutional body, that determines the method and formula for distributing the tax. The thirteenth finance commission, interalia, has been mandated to recommend the. Apr 27, 2020 the 14th finance commission has recommended a record 10% increase in the states share in the union taxes to 42% as compared to the th finance commission. Under article 280 of the constitution, the president of india is required to constitute a finance commission at an interval of five years or earlier. The 1% decrease is to provide for the newly formed union territories of jammu and kashmir, and ladakh from the resources of the central government. The 14th finance commission was setup by the president in january 2014 under the chairmanship of the former rbi governor y v reddy and its other members were sushma nath, m govinda rao, sudipto mundle, abhijit sen. Towards a new architecture for federal finance, chapter chapter. Singh to decide the formula for devolution of revenue between centre and states, for a period of 5 years april, 2020 to march, 2025. The commission makes recommendation to distribute taxes between centre and state. The 15th finance commission submitted the report for 2020. The share of states in the net proceeds of the shareable central taxes should be 42%. This is the largest ever jump in percentage of devolution. The report by 14th finance commission had a note of dissent from abhijit sen.
It was formed to define the financial relations between the central government of india and the individual state governments. While acknowledging the many plus points of the report, the writers also draw attention to its numerous drawbacks, ranging from a lack of proper attention and omissions to faulty logic. Misleading to compare devolution suggestions of th and. The 15th finance commission provides an enormous opportunity in setting out a blueprint for indias future that rests on the foundation of a strong federal polity. Guidelines for local body grants recommended by the fourteenth finance commission. The report of the thirteenth finance commission conundrum in conditionalities m. Introduction the fourteenth finance commission ffc was constituted by the president on january 2, 20 to give recommendations on specified aspects of centre state fiscal relations during 201520. Introduction and overview pinaki chakraborty this special issue on the report of the thirteenth finance commission has eight experts evaluating its recommendations from different perspectives. All you need to know about finance commission the hindu. The main aim of the finance commission is to address the vertical and horizontal imbalances between the centre and the states. In terms of total resources transferred, the commissions recommendations.
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