List of finance commissions and their heads wordpandit. Sdrf and ddrf on the recommendation of the th finance commission. Need to release at least a part of the renewable energy incentive grants to states upfront the recommendation of the thirteenth finance commission on re was a performance based incentive grant to be released to deserving states in 201415 after installation of re capacity by them. This is the largest ever jump in percentage of devolution. This was an important step towards cohesive provincial units. The subject is also of contemporary interest since the report of the fourteenth finance commission has been submitted recently and accepted and incorporated in the budget. Fourteenth finance commission ffc was constituted under the chairmanship of ex rbi governor dr. Preliminary evidence on the impact of the recommendations of the fourteenth finance commission suggests that there has been an increase in central transfers and social sector expenditures in. On 5th december 2014, the 14th finance commission presented its report to the union government.
Fourteenth finance commission report maps of india. Govinda rao, abhijit sen, sudipto mundle, and an jha. 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 14th finance commission could go a step forward and recommend 5% and 3% of the union divisible pool, under article 280 clause 3 bb and c, to panchayats and municipalities respectively. The commission suggested in its report that there should be greater coordination between the centre and the states in common financial interests for which it recommended the establishment of a permanent organization in the ministry of finance. Papertyari presents you the online sebi grade a study material.
Role and recommendation of finance commissions and planning committees planning based on a clear idea of the magnitude of available resources and anchored, to the extent possible, in selfgenerated resources is the sine qua non of responsible planning. Guidelines for the performance grant disbursement in fourteenth finance commission. The disbursement of the performance grant in fourteenth finance commission. The impact of the recommendations of the fourteenth finance. The fourteenth finance commission had submitted its report to the president pranab mukherjee in december 2014. It was formed to define the financial relations between the central government of india and the individual state governments. The government of india, with the approval president of india, has constituted fifteenth finance commission. In addition to the primary objectives mentioned above, the terms of reference for the commission sought suggestions regarding the principles which would govern the quantum and distribution of. Key recommendations of the 14th finance commission i. Structure of presentation core philosophy of ffc transfers to the states transfers to local governments focus on basic services design and quantum flow of funds going forward with convergence. In preparation of its report, the fourteenth finance commission was guided by the terms of reference. We will post notes, pdf and related content to help you prepare from exam point of view. The fourteenth finance commission ffc recommended a hike in tax devolution to the states from 32% to 42% of central revenues as divisible pool.
Terms of reference the commission was asked to make recommendations on the following matters. The fourteenth finance commission has come up with some bold and gamechanging recommendations such as an increase in the tax share going to states from 32% to 42%, setting up of the fiscal council to make the centre accountable, and doing away with direct transfers to states under centrallysponsored schemes. The recommendation of fourteenth finance commission for the award period 201520 include, interalia, release of grantinaid to state governments for rural and urban local bodies. The fourteenth finance commission of india 20152020 the fiveyear term of the thirteenth finance commission ended in 2015. As chairman of the commission ffc i had the benefit of some insider information, which i can draw. Latest current affairs in april, 2020 about 14th finance commission. The finance commission is a constitutionally mandated body that is at the centre of fiscal federalism. Impact of changes in fiscal federalism and four teenth. 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. The impact of the recommendations of the fourteenth finance commission ananya kotia sahana roy chowdhury nipfp october 18, 2016 nipfp 1 28 the impact of the recommendations of the fourteenth finance commission. Fourteenth finance commission economic and political. Impact of fourteenth finance commission karnataka budget, 201516 pranay kotasthane, varun k ramachandra this article identi.
The 15th finance commission has been mandated to use data from the 2011 census. Hence, new recommendations were made enforceable by the fourteenth finance commission of india in february 2015. Fifteenth finance commission department of economic. Public notice issued by 14th finance commission wbxpress. 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 20200401. 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. It has intermediate appellate jurisdiction of both civil and criminal cases appealed from lower courts in ten 10 counties of texas see below. The first finance commission was constituted in 1951 under the leadership of kc neogy, a politician. The court is composed of a chief justice and eight 8 justices. 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. National development agenda, fourteenth finance commission and the union budget 201516 the first meeting of the governing council of niti was held on 8th february 2015. National institution for transforming india niti project.
Grant recommended by th finance commission extent of utilization of earlier instalments to determine eligibility for release of subsequent instalments o. Suggestions for the fourteenth finance commission on. Apr 17, 2020 14th finance commission latest breaking news, pictures, videos, and special reports from the economic times. This is necessary because fixation of medium term scheme outlay needs a clarity over flow of resources, which is likely to be available to both central and state governments over the finance commission periods. The commission is headed by former reserve bank of india rbi governor y v reddy. The commission s chairman was former reserve bank of india governor y. Fourteenth finance commission name of the council btc, dhac and kaac, state assam information on local bodies number of local bodies at each tier of panchayati raj institutions pris and each level of urban local bodies ulbs in the states as on 1. The fourteenth finance commission ffc was appointed on 2 nd january, 20 under the chairmanship of dr. The fourteenth court of appeals was created in 1967. 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. 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 chief secretary, government of puducherry, puducherry. The fourteenth finance commission of india was a finance commission constituted on 2 january 20. Earlier, the finance commission was appointed in january 20 to give its report by october 31 this year. Presented in table 3 below, it shows that the annual per capita aggregate revenues of municipalities amounted to rs. Therefore, let us go through the important points about 14th finance commission. Fourteenth finance commission ffc recommendations fiscal transfers in india india is a federal country with a threetier system of government namely, the union, states and local levels. In order that the financial position of urban local bodies is. Sebi grade a study material free online preparation, pdf.
As an important constitutional entity, the commission is committed to balancing competing claims and priorities among all three tiers of government in a credible manner. Fourteen 14th finance commission economics study material. Recommendations of the 14th finance commission the hindu. Reddy 14th finance commission holds that tax devolution is the primary route for resource transfer to the state no distinction between plan and nonplan. Suggestions for a restructuring of the public finances so as to restore budgetary balance and maintain macroeconomic. 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. Kindly find enclosed herewith a copy of the guidelines for release and utilization of grants recommended by the fourteenth finance commission fcxiv. Vitta ayoga was established by the president of india in 1951 under article 280 of the indian constitution. You can expect at least 1 to 2 questions from list of finance commission and their head in any competitive exams. Area is used as a criterion as a state with larger area has to incur additional administrative costs to deliver services. The th finance commission made a beginning by allocating 2. On the whole the finance commission faces new challenges in the process of the evolution of our federal polity.
The distribution of taxes collected between the centre and the states. Singh chairman of 15th finance commission of india. Thirteenth finance commission guidelines department of. Guidelines for local body grants recommended by the. Guidelines for local body grants recommended by the fourteenth finance commission.
These guidelines are equally applicable to both central sector schemes. The 14th finance commission used the 2011 population data, in addition to the 1971 data. In the following paragraphs the guidelines for continuation of schemes beyond 12th five year plan are elaborated. Functions of finance commission and its formation indian. Finance commission has identified over 30 css schemes to be delinked from centres support but all have not yet been delinked considering the national priorities and legal obligations. Estimates of the resource gap and investment requirements 5. The finance commission would encourage suggestionsviews from all interested organisations and individuals which may be sent by 30th april, 20 in any of the following manner. Crisp news summaries and articles on current events about 14th finance commission for.
Here we are sharing some important information about 15th finance commission. It is definitely going to appear in upcoming interviews and examinations. Thirteenth finance commission submitted its report in parliament on february 25, 2010. The devolution formula which has become uniform without differentiating special category states and including the forest area in the formula has enabled hilly terrain special category states. Recommendations 14th finance commission headed by former rbi governor y. The recommendations of the commission entered force on april 2015. The ffc learnt that there is much to be gained by adhering to the letter and spirit of the constitution, and listen to and learn from. List of finance commissions and their heads list of finance commissions and their heads is an important static gk topic for mba, bank po and other competitive exams. Background the fourteenth finance commission 14fc stipulates that a detailed procedure for the disbursal of the performance grant to urban local bodies ulbs would have to be designed, subject to certain eligibility criteria. The thirteenth finance commission was required to look into the revenue impact of the introduction of the goods and services tax. Since then, much has changed with regards to the structure, composition and nature of recommendations. The commissions chairman was former reserve bank of india governor y. Apart from the tax devolution, the thirteenth finance commission hereafter tfc has given a large number of conditional grants linking.
The distribution across the different tiers of rural bodies was primarily guided by the fact that the fourteenth finance commission has devolved a large amount of funds to the gram panchayats, but absolutely nothing to the higher two tiers. 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 meeting endorsed the outline of a national development agenda and agreed to function as an organic team india. 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 commission s chairman is nand kishore singh, with its fulltime members being ajay narayan jha, ashok lahiri and anoop singh. The fourteenth finance commission has recently been in news. 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 formula used in the fourteenth finance commission is not the same as that used by its predecessor and so the share of individual states cannot really be compared. The recommendation of fourteenth finance commission for the award period 201500 include, interalia, release of grantinaid to state governments for rural and urban local bodies. Performance audit of ulbs on financial and performance reporting i. The 14th finance commission report has been accepted by the center,the report has been tabled today and it recommended that the center transfer 42% of divisible pool to the states, including taxes and grants the th finance commission had suggested it a 39. Nov 23, 2017 cabinet approves setting up of 15th finance commission the members of the commission and its terms of reference will be notified in the due course of time, finance minister arun jaitley said after the union cabinet meeting. It is in pursuance of clause 1 of article 280 of the constitution, read with the provisions of the finance commission miscellaneous provisions act, 1951e.
Sharing pattern under various css to undergo a change, with states sharing higher fiscal responsibility for scheme implementation. Finance commission cycles, the first such one being the remaining fourteenth finance commission ffc period ending march, 2020. The fourteenth finance commission was constituted by the president under article 280 of the constitution on jan. This is necessary because fixation of medium term scheme outlay needs a clarity over flow of resources, which is likely to be available to bothcentral andstategovernments overthe finance commission periods. 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 14th finance commission has been hailed as pathbreaking for recommending larger fund allocations to state governments and giving them more autonomy in spending these funds. 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.
Adequate fiscal space is a prerequisite for these different levels of government to function autonomously. Thirteenth finance commission economic and political. Recommendations for 14th finance commission given below is a summary list of recommendations which we believe are worthy of consideration for inclusion in the report of the 14th finance commission fc. The fourteenth finance commission ffc implications for fiscal federalism in india. With regard to the recommendations made by the finance commission of the state. Reddy was appointed the chairman of the commission. Suggestions for the fourteenth finance commission 1. Fourteenth finance commission ffc for rural and urban local bodies local bodies grant. Set up under article 280 of the constitution, its core responsibility is to evaluate the state of finances of the union and state governments, recommend the sharing of taxes between them, lay down the principles determining the distribution of these taxes among states. Dec 15, 2016 articles 270, 273, 275 and 280 provide for the constitution of a finance commission at five year intervals to recommend to the president certain measures relating to the distribution of financial resources between the union and the statesfor instance, the percentage of the net proceeds of incometax which should be assigned by the union to the states and the manner in which the share to. Apr 27, 2015 the 14th finance commission has been hailed as pathbreaking for recommending larger fund allocations to state governments and giving them more autonomy in spending these funds.