Performance audit of ulbs on financial and performance reporting i. The fifteenth finance commission is up against unprecedented challenges. 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. Reddy former governor of the reserve bank of india madras school of economics gandhi mandapam road chennai 600 025 india july 2015. All you need to know about finance commission the hindu. The commissions chairman is nand kishore singh, with its fulltime members being ajay narayan jha, ashok lahiri and anoop singh. It was formed to define the financial relations between the central government of india and the individual state governments. This is the largest ever jump in percentage of devolution. The finance commission miscellaneous provisions act, 1951 additionally defines the terms of qualification, appointment and.
Gk, general studies, optional notes for upsc, ias, banking, civil services. Public notice issued by 14th finance commission wbxpress. Kindly find enclosed herewith a copy of the guidelines for release and utilization of grants recommended by the fourteenth finance commission fcxiv. The recommendations of the fourteenth finance commission ffc will guide the centrestate fiscal relationship and lay the basis for a large portion of the transfers that will be made by the government of india goi to the state governments over the period 201516 to 201920. It hopes that the ffc will restore horizontal federal fiscal equity in the distribution of revenues and recommend special fi nancial assistance to big cities that face an unprecedented pressure on urban services.
States share in the net proceeds of union tax revenues increased to 42% from 32% earlier. The fourteenth finance commission key recommendations and analysis introduction the finance commission primarily concerns itself with formulating recommendations for centrestate financial relations. It is a body set up under article 280 of the constitution. Vitta ayoga was established by the president of india in 1951 under article 280 of the indian constitution. 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. The fourteenth finance commission invites suggestions on issues related to the terms of reference from the members of the general public, institutions and organizations. The fourteenth finance commission had submitted its report to the president pranab mukherjee in december 2014.
Maharashtra fact file maharashtra fact file 2011 no. The commission submitted its report to the president on december 15, 2014. With urbanisation, cities and towns experience service delivery. Fourteenth finance commission ffc recommendations 2 the fourteenth finance commission ffc set the stage for a radical overhaul of centrestate relations. Guidelines for local body grants recommended by the fourteenth finance commission. 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. These include guidelines for sharing of tax proceeds. Most municipalities have a huge backlog of basic infrastructure, underspending by municipalities. Fourteenth finance commission report maps of india. 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. Presented in table 3 below, it shows that the annual per capita aggregate revenues of municipalities amounted to rs. Jha, secretary, fourteenth finance commission, who wrote to the vice chancellor, sikkim university, requesting the economics department of the university then the department of economic studies and planning to take up the project covering the evaluation of state finances in. Srinivas chary the fourteenth finance commission 14 th fc was constituted at a time when the role and contribution of urban areas for the nations economy and development is being recognised. Grants from the finance commission and grants for any agency functions assigned by.
More importantly, the terms of reference notified for the commission have stoked controversy so sharp that even the fourteenth finance commission, chairman y. The commission recommended that the sharing pattern of the schemes sponsored centrally be changed. The finance commission is a constitutionally mandated body that is at the centre of fiscal federalism. It recommendations which pertain to the period from 201015 include the impact of the proposed goods and services tax on the economy as well as a.
The thirteenth finance commission of india was constituted by the president of india under the chairmanship of vijay l. Y v reddy has recommended 10% increase in vertical devolution to states. Reddy was appointed the chairman of the commission. There should be a mechanism by which gst council and. Southern states have raised objections over the directive to use popu. The terms of reference of the fourteenth finance commission are conventional, but a number of additional terms of reference do enable it to break some new ground. 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 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 14 th finance commission has submitted its report to the president pranab mukherjee. Finance commission concepts and definitions tax devolution.
View test prep 14th finance commission final from economics 106 at university of delhi. The fourteenth finance commission headed by former rbi governor dr. Its primary job is to recommend measures and methods on. First, the goods and services tax has introduced an element of uncertainty in the revenue projections of the union and state governments. The fourteenth finance commission has been constituted in pursuance of the provisions of the constitution of india by the president under the chairmanship of dr. Impact of fourteenth finance commission karnataka budget, 201516 pranay kotasthane, varun k ramachandra this article identi. The commission is headed by former reserve bank of india rbi governor y v reddy. Both planning commission and finance commission play a vital role in.
Report of the fourteenth finance commission the hindu. The presidential terms of reference tor of the fifteenth finance commission have raised questions. Many actors, including state governments, have expressed concerns over the implication of these changes on the fiscal space available, state autonomy and social sector investments. The fourteenth finance commission was constituted by the president under article 280 of the constitution on jan. The thirteenth finance commission was set up in november 2007 and was headed by vijay kelkar,former finance secretary and adviser to the finance minister and submitted its report in february 2010. It also makes recommendations regarding the devolution of taxes between. The finance commission can be constituted at such an earlier time as the president considers necessary. Government accepts 14th finance commission recommendation for tax devolution.
Estimates of the resource gap and investment requirements 4. 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. One of the core tasks of a finance commission as stipulated in article 280 3 a of the constitution is to make recommendations regarding the distribution between the union and the states of the net proceeds of taxes. For effective implementation of such schemes, the states should hold a bigger fiscal responsibility, the commission maintained. 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. Recommendations of the 14th finance commission the hindu.
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. Fourteenth finance commission by sept news archive news. Pdf preliminary evidence on the impact of the recommendations of the fourteenth finance commission suggests that there has been an increase in central. Instead, the fourteenth finance commission would consider states revenue expenditure needs. 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. Vivek bendre the fifteenth finance commission is up against unprecedented challenges. Fourteenth finance commission economic and political.
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. Public noticefourteenth finance commission this public notice issued by the 14 th finance commission constituted vide presidential order dated 2 nd january, 20, is being put in public domain for inviting suggestions on issues related to its terms of reference, from the members of the general public, institutions and organizations. Click here to read the complete report of the fourteenth finance commission pdf. 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. Terms of reference of the fourteenth finance commission. This is the most important task of any finance commission, as the share of states in the net.