The 15th finance commission submitted the report for 2020. Its primary job is to recommend measures and methods on how revenues need to be distributed between the. The president of india appointed a finance commission on 1st december, 1951. 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. 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 states share in the proceeds of the income tax should. 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. This commission is expected to submit its report by november end 2019. Report of the th finance commission 2010 2015 the government must cut its fiscal deficit to 3% of the gdp by the end of fiscal year 2014 and eliminate its revenue deficit in 201415. With regard to the recommendations made by the finance commission of the state. The finance commission is a constitutional body that is setup under the article 280 of the constitution of india by the president every five years. Mar 04, 2010 the 1 st finance commission was constituted on 22 nd november 1951 under the chairmanship of k. 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. The fourteenth finance commission had submitted its report to the president pranab mukherjee in december 2014. The following were the important recommendations of this commission. Other recommendations to be made by the finance commission, as per its terms of reference. Major recommendations of th finance commission headed by shri vijay. Recommendations of the tenth finance commission tfc.
National institute of public finance and policy abstract this special issue on the report of the thirteenth finance commission has eight experts evaluating its recommendations from different. Vitta ayoga was established by the president of india in 1951. Mar 22, 2020 the fifteenth finance commission ffc submitted its first report for financial year 202021 to president ram nath kovind on thursday, setting the stage for a change in the revenue sharing pattern. Article 280 of the constitution of india provides for a finance commission as a quasijudicial body. The 14th finance commission report has been accepted by the center,the report has been. In addition, this section makes use of the report on indian infrastructure and services, prepared by a highpowered expert committee headed by dr. It was established under article 280 of the indian constitution by the president of india. The share of states in the centres taxes is recommended to be decreased from 42% during the 20152020 period to 41% for 20202021. The report of the fifteenth finance commission, along with an action taken report, was recently tabled in parliament. Essential recommendations of finance commission of india. The first report, consisting of recommendations for the financial year 202021, was tabled in parliament. The interim report of the 15th finance commission fc has been tabled in parliament this budget session. Since the institution of the first finance commission, stack. The 15th finance commission may split open demographic fault lines between south and north india.
The twelfth finance commission tfc under the chairmanship of dr. A watershed 14th finance commission gs paper 3,business. 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. Vitta ayoga was established by the president of india in 1951 under article 280 of the indian constitution.
In compliance with section 25i of the local governme4nt finance commission act 2003, i have the honour and pleasure to submit the annual report for the local government finance commission in respect of the activities, challenges and recommendations of the local government finance commission for year 20. 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. Comments on the report would be gratefully received and should be sent, by mail or email to the editors. The strengthened fc wing in finance department shall monitor the follow up. About fc composition, functions and objectives, key recommendations. The annual report 2015 explains the functioning of the finance commission for the period from january 2015 to december 2015. The recommendations would be applicable for the period from 20202026. 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. Get complete information on twelfth finance commission of india.
Oct 09, 2015 the report of the fourteenth finance commission ffc was tabled in parliament yesterday. Report summary the finance commission is a constitutional body formed by the president of india to give suggestions on centrestate financial relations. Apr 17, 2020 finance panel to discuss centre, states fiscal responsibility and budget management 03 mar, 2020, 06. Recommendations are valid for a period of five years. Panchayats in the state on the basis of the recommendations made by the finance commission of the. Its main work is to give recommendations on distribution of central tax revenues between the union and the states. Fourteenth finance commission this article about the law of india is a stub. 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 15th finance commission submitted the report of the commission for the financial year 202021 for further action. Report of the 15th finance commission for fy 202021. Review and outcomes the 14th finance commission ffc was constituted on 2nd january, 20 and submitted its report on 15th december, 2014. Article 280 of the constitution of india provides for a quasijudicial body, the finance commission. In terms of total resources transferred, the commissions recommendations. The commission has had to carry out its remit in a particiularlv dlifficult fiscal situation.
Report of tenth finance commission s guhan in the sequence of finance conmmission reports, the tenth finance commission s is amtiong the outstanding ones. Final report independent commission on local government. The finance commission is a constitutional body formed by the president of india to give suggestions on centrestate financial. 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. It is definitely going to appear in upcoming interviews and examinations. Finance commission concepts and definitions tax devolution 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. The finance commission of india is an autonomous body under the government of india recommended and established by the constitution in the finance commission act, 1951. Fourteen 14th finance commission economics study material. To recommend the distribution of the net proceeds of taxes between the centre and states, and among the states. Isher ahluwalia, and a report titled as india municipal finance. The recommendations of the current finance commission will be for the five year period beginning april 1, 2010. Annual report 2017 8 the finance commission was established by the th amendment to the constitution of the democratic socialist republic of sri lanka in 1987 with the objective of achieving balanced regional. Therefore, let us go through the important points about 14th finance commission.
Fourteenth finance commission ffc for rural and urban local bodies local bodies grant. You can expect at least 1 to 2 questions from list of finance commission and their head in any competitive exams. The commission is headed by former reserve bank of india rbi governor y v reddy. It was formed to define the financial relations between the central government of india and the individual state governments. 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. It highlights the fact that there has been a serious deterioration in the fiscal situation of. When was the first commission constituted and how many commissions have been constituted so far. Recommendations of the 15th finance commission insightsias. Recommendations of the 14th finance commission the hindu. List of finance commissions and their heads wordpandit. The state finance commissions are constituted by government of kerala under clause 1 of article 243 i. The eleventh finance commission of india was appointed by the president on 3 july 1998 for the period 20002005. Major recommendations of 14th finance commission headed by prof. It emphasizes main tasks of the commission covering areas of resource allocation, fund transfers and assessment of provincial performance.
The 15 th finance commission was constituted by the president of india in november 2017, under the chairmanship of nk singh. Tenth finance commission tfc regarding the alternative scheme of sharing of taxes between the centre and the states from a single divisible pool at a uniform rate of 29 per cent as detailed in chapter xiii of the tfc report, subject to the modification that instead of freezing the percentage. Dec 02, 20 about finance commission the finance commission of india came into existence in 1951. Fiscal reform facility introduced by the central government on the basis of the recommendations of the. 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.
Performance grant is to be received for the period of 5 years during the year 201520. Annual report 2018 annual report 2017 annual report 2016 annual report 2015 annual report 2014 en annual report 20 en annual report 2012 en fc circulars psdg cbg other fc guidelines guidelines 2020 for preparation of the provincial annual development plan annex 1 annex 2 annex 3 annex 4 annual needs assessment recurrent needs. Report summary report of the thirteenth finance commission. 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. Apart from the tax devolution, the thirteenth finance commission hereafter tfc has given a large number of conditional grants linking. Around 30 persons appointed from finance department. This has led to major changes in the finance commissions recommendations over the years.
On march 19, 2020, the finance commission announced that it will monitor situation of covid19 before releasing its second report. Guidelines for local body grants recommended by the fourteenth finance commission. Performance audit of ulbs on financial and performance reporting i. The tenth finance commission will make recommendations for the distributions of the net proceeds of taxes between the union and the states and also on the norms related to the grantsinaid allotted to the states to raise their income. Report of the 15th finance commission for fy 202021 prsindia. The government has accepted its farreaching, indeed radical, recommendations that have the potential to redefine indian federalism in a long overdue and desirable manner. The finance commission is a constitutional body formed by the president of india to give suggestions on centrestate financial relations. The following order made by the president is to be published for general information. The following points highlight the six main recommendations of the tenth finance commission tfc.
It is becoming almost untenable for tamil nadu and kerala to thrive in the indian union as. The fifteenth finance commission was constituted on 27 november 2017 against the backdrop of the abolition of planning commission and the introduction of the goods and services tax gst, which has fundamentally redefined federal fiscal relations. As we are just about 2 months away from the submission of the 15th finance commission report, here is all you need to know about ffc. Earlier, the finance commission was appointed in january 20 to give its report by october 31 this year. The recommendations for the period from 1st april, 2015 to 31st march, 2020 were. Report of the twelfth finance commission 20052010 authored by. Read more about guidelines for local body grants recommended by the fourteenth finance commission. Local bodies during the state visits of the finance commission 157 163 i. Reddy was appointed the chairman of the commission. Apr 18, 2020 cabinet extends term of 15th finance commission 27 nov, 2019, 07. Suggestions for a restructuring of the public finances so as to restore budgetary balance and maintain macroeconomic.
The following points highlight the four main recommendations of the eleventh finance commission. The commission has recommended grants for health sector under its report. The eleven finance commissions, which have preceded the present one, have, through their recommendations, given. Finance commission of india is established by president of india as per article 280 of the constitution.
Since 1951, eight finance commissions have so far been appointed. All you need to know about finance commission the hindu. Get complete information on twelfth finance commission of. New delhi 110016 content owned by finance commisssion of india. The tenth finance commission was incorporated in the year 1995. Singh, members sshri ajay narayan jha, ashok lahiri, ramesh chand, anoop singh and secretary shri arvind mehta of the commission. The commission submitted its report on 30 november 2004 and covered the period from 2005.
The first report, consisting of recommendations for the financial year 202021, was tabled in parliament on february 1. The report of the th finance commission, is perhaps more comprehensive. It was formed to define the financial relations between the centre and the state. Finance commission in 2014, the issues have remained largely the same. The commission comes out with its reports highlighting reforms relating to the fiscal scenarios. As per the constitution, the committee appointed every five years and consists of a chairman and four others members. This is the largest ever jump in percentage of devolution. 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. Data pertaining to the finances of municipalities are drawn from the website of the th finance commission and ministry of finance. Feb 12, 2014 report of the th finance commission 2010 2015 the government must cut its fiscal deficit to 3% of the gdp by the end of fiscal year 2014 and eliminate its revenue deficit in 201415. Finance panel to discuss centre, states fiscal responsibility and budget management 03 mar, 2020, 06.
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. It is a body set up under article 280 of the constitution. The first such commission was constituted on november 19, 1951. Performance grant is to be received from the year 201617. The report benefitted from comments and suggestions by nicolas carnot, stefan ciobanu, servaas deroose, heinz jansen, peter koh, jakub koniecki, karolina leib, marie mulvihill, lucio pench and christian weise. Highlights of 14th finance commission report ficci. The tenth finance commission of india was incorporated in the year 1992 consisting of shri krishna chandra pant as the chairman. The first finance commission was constituted vide presidential order dated 22. Report on public finances in emu 2014 european commission. The commission was asked to make recommendations to the president with regard to the. The finance commission act of 1951 states the terms of qualification appointment and disqualification and term, digibility and powers of the finance commission. Its recommendations are also geared towards improving the quality of public spending and promoting fiscal stability. The commission has to submit the report to the government by october 30.
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