The 14th finance commission used the 2011 population data, in addition to the 1971 data. The 15th finance commission submitted its interim report on devolution formula for the financial year 202021 to president ram nath kovind. The 15th finance commission has been mandated to use data from the 2011 census. Southern states have raised objections over the directive to use popu. Some of these changes are within the mandate of the constitution.
The 14th finance commission of india is constituted under the chairmanship of the former rbi governor mr. About fc composition, functions and objectives, key recommendations. Singh is appointed as the chairman of 15th finance commission from 202025. Press release constitution of fifteenth finance commission.
The final report with recommendations for the 2021. Essential recommendations of finance commission of india. May 21, 2018 the terms of reference of the 15 th finance commission raises questions about constitutional propriety which goes beyond the concern of population data. The 15th finance commission may split open demographic.
The first finance commission was formed on 22 november, 1951. Over the years, finance commissions have used population data of the 1971 census. The fifteenth finance commission xvfc or 15fc is an indian finance commission constituted in november 2017 and is to give recommendations for. Crisp news summaries and articles on current events about 15th finance commission for. The tasks before it are unique in the sense that it has to make its recommendations after the rules of fiscal. Download 15th finance commission report pdf for upsc 2020. Its recommendations are also geared towards improving the quality of public spending and. The 15th finance commission may split open demographic fault lines between south and north india. The 15th finance commission the finance commission, set up in 1951 under article 280 of the constitution, basically decides how revenue has. Evaluation of state finances jharkhand 15th finance commission.
Why states are demanding more from the 15th finance commission. Explanatory memorandum as to the action taken on the recommendations. Download complete local bodies statements finance commission india. The finance commission is a constitutional body which is established under the article 280 of indian constitution. Oct 20, 2019 the 15th finance commission is the first finance commission set up after the abolishment of the planning commission. The devolution formula spells out how the centre plans to share the taxes collected by it with the states. Latest current affairs in may, 2020 about 15th finance commission. Mar 10, 2018 the terms of reference of the fifteenth finance commission are significantly different from those of earlier finance commissions. Reddy for the period of april 1, 2015, to march 31, 2020. The report of the fifteenth finance commission, along with an action taken report, was recently tabled in parliament. The commission headed by n k singh apprised the president of the recommendations co. The fifteenth finance commission xvfc was constituted in november 2017 to give recommendations for vertical and. Constitution of fifteenth finance commission the government of india, with the approval honble president of india, has constituted fifteenth finance commission in pursuance of clause 1 of article 280 of the constitution, read with the provisions of the finance commission miscellaneous provisions act, 1951 w.
The 15th finance commission may split open demographic fault. The finance commission submitted its report for the financial year 202021 to president ram nath kovind on thursday. The final report for the period 1 april 2021 to 31 march 2026 will be. All you need to know about 15th finance commission report. Apr 27, 2020 the 14th finance commission of india is constituted under the chairmanship of the former rbi governor mr. This commission is expected to submit its report by november end 2019. Following are the terms of reference tor of the 15th fc.
The report of the fifteenth finance commission, along with an action taken report, was tabled in parliament on february 1. The constitution of india envisages the finance commission as the balancing wheel of fiscal federalism in india. The 15th finance commission submitted the report of the commission for the financial year 202021 for further action. Current affairs 15th finance commission report brainy ias. Since, the formula is to be applied in the new budget, the award has not been made public. Mar 02, 2019 the fifteenth finance commission was constituted by a presidential order in november, 2017 under the chairmanship of shri n. This is an indication that the enhanced devolution of 42% from 32% might be reversed if the union feels financially constrained. The commission covers five years commencing april 1, 2020. It was formed to define the financial relations between the central government of india and the individual state governments. The 15th finance commission report was tabled along with the budget. Vitta ayoga was established by the president of india in 1951 under article 280 of the indian constitution. It has done well to ask that such extrabudgetary liabilities be clearly earmarked and eliminated in a timebound manner.
The finance commission miscellaneous provisions act, 1951 was passed to give a structured format to the finance commission and to bring it to par with world standards, by laying down rules for the qualification and disqualification of members of the commission, and for their appointment, term, eligibility and powers. Following the recommendations, the finance minister ms nirmala sitharaman said in her budget speech that states formulating and implementing plans for ensuring cleaner air in cities with a population of more than one million would be encouraged. Under role of finance commission, a smooth analysis is presented of important news news published daily in leading english. 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. The fourteenth finance commission had submitted its report to the president pranab mukherjee in december 2014. The final report with recommendations for the period 202126 will be submitted by october 30th, 2020. The recommendations, to be observed for a period of five years, will kick in from april 1, 2020 to march 31, 2025. Report summary the finance commission is a constitutional body formed by the president of india to give suggestions on centrestate financial relations. Apr 04, 2020 share of states 15th finance commission key recommendations of the 15th fc report 20202021. Singh, members sshri ajay narayan jha, ashok lahiri, ramesh chand, anoop singh and secretary shri arvind mehta of the commission. Singh to decide the formula for devolution of revenue between centre and states, for a period of 5 years april, 2020 to march, 2025. This is the largest ever jump in percentage of devolution.
Article 280 of the constitution of india provides for a quasijudicial body, the finance commission. Recommendations of the 15th finance commission insightsias. It is not surprising therefore that states are demanding a higher share in revenues from the 15th finance commission, whose recommendations will determine revenue sharing for the next five years. The fifteenth finance commission fc, in its report for fiscal year 202021, has recommended a marginal reduction in the vertical devolution. The following were the important recommendations of this commission. Pdf evaluation of state finances jharkhand 15th finance.
Share of states 15th finance commission key recommendations of the 15th fc report 20202021. The contentious issues in the terms of reference are asking the 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 share of states in the centres taxes is recommended to be decreased from 42% during the 20152020 period to 41% for 20202021. The terms of reference of the fifteenth finance commission are significantly different from those of earlier finance commissions. The presidential terms of reference tor of the fifteenth finance commission have raised questions. Role of finance commission and interim report of 15th.
Since 1951, eight finance commissions have so far been appointed. Singh chairman of 15th finance commission of india. Last week, the union cabinet formally signed off on the setting up of the 15th finance commission. Report of the 15th finance commission for fy 202021 prsindia. Fifteenth finance commission department of economic affairs. The commission shall indicate the basis on which it has arrived at its findings and make available the state wise estimates of receipts and expenditure. Fifteenth finance commission terms of reference terms of reference and the matters that shall be taken into consideration by the fifteenth finance commission in making the recommendations are as under. The fourteenth finance commission was constituted by the president under article 280 of the constitution on jan. The finance commission fc, an autonomous body which is governed by the government of india. Dec 08, 2019 the 15th finance commission submitted its interim report on devolution formula for the financial year 202021 to president ram nath kovind. To examine whether revenue deficit grants be provided at all.
It is becoming almost untenable for tamil nadu and kerala to thrive in the indian union as. It is constituted by the president of india every fifth year or at such earlier time as he considers necessary. Chairman of the commission nk singh tells ets anubhuti vishnoi that the report will take a judicious view of the near unanimous demand by states to up allocation to 50% from 42% and on objections to new india2022 expenditure sought by the centre. The commission will make recommendations for the five years commencing on april 1, 2020. The distribution between the union and the states of the net proceeds of. Article 275 grant in aid of revenues grantinaidstatutory grantsnonplan grants are to. The other aspects referred to the 15th finance commission. Gk, general studies, optional notes for upsc, ias, banking, civil services. Singh, with its fulltime members being ajay narayan jha, ashok lahiri. Feb 08, 2020 the 15th finance commission has only used census 2011 data. The president of india appointed a finance commission on 1st december, 1951. The commission will make recommendations for the five years commencing on april 1. 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.
Report of the 15th finance commission for fy 202021. 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. The final report with recommendations for the 2021 26 period will be submitted by october 30, 2020. Shri nk singh is the chairman of the 15th finance commission.
The states share in the proceeds of the income tax should. Report of the 15th finance commission for fy 202021 open pdf the finance commission is a constitutional body formed by the president of india to give suggestions on centrestate financial relations. The 15th finance commission will submit its report by october and is doing its last few rounds of statewide consultations. The 15th fc was setup under the chairmanship of nk singh to suggest measures for the five years from 142020 to 32025.
The 15 th finance commission was constituted by the president of india in november 2017, under the chairmanship of nk singh. The interim report of the 15th finance commission fc has been tabled in parliament this budget session. Here we are sharing some important information about 15th finance commission. The first report, consisting of recommendations for the financial year 202021, was tabled in parliament. Finance commission recommendations are binding on the government a. The finance commission is a constitutional body formed by the president. Pdf challenges before the fifteenth finance commission. The commission, headed by n k singh what is finance commission and its purpose. Previously, the planning commission undertook plan expenditures, but now, with more power in the hands of fc, revolutionary measures to equalise opportunities, bring uniformity in public services and promote labor intensive growth.
The 15th finance commission submitted the report for 202021 fy. The fifteenth finance commission xvfc or 15fc is an indian finance commission constituted in november 2017 and is to give recommendations for devolution of taxes and other fiscal matters for five fiscal years, commencing 1 april 2020. 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. Commission report, the economy has gone through a lot of change. The 15th finance commission submitted the report for 2020. On the face of it, this is a routine exercise carried out every five years to detail the fiscal. The first report, consisting of recommendations for the financial year 202021, was tabled in parliament on february 1, 2020. Know the recommendations of the 15th finance commission. The 15th finance commission is the first finance commission set up after the abolishment of the planning commission. Will take judicious view of states seeking higher funds. Crisp news summaries and articles on current events about 15th finance commission for ibps, banking, upsc, civil services. The 15th finance commission has only used census 2011 data.
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