Extension of the term of Fifteenth Finance Commission 21/07/2019 – Posted in: Press Information Bureau – Tags: Finance commission
Fifteenth Finance Commission
(Cabinet)
WHAT
The Union Cabinet has approved the extension of the term of Fifteenth Finance Commission up to 30th November 2019.
- It will enable the Commission to examine various estimates for financial projections in view of reforms for the period 2020-2025.
- The Commission was to submit its report on the basis of its Terms of Reference (ToR) by 30th October 2019 covering a period of five years commencing from 1st April 2020.
FIFTEENTH FINANCE COMMISSION
- 15th Finance Commission has been constituted by the President on 27tn November 2017 in ‘ pursuance of clause (1) of Article 280 of the Constitution and Finance Commission (Miscellaneous Provisions) Act, 1951.
- The 15th Finance Commission headed by NK Singh.
- The commission was set up to give recommendations for devolution of taxes and other fiscal matters for five fiscal years, commencing 1 April 2020.
- Commissions’ main tasks were to “strengthen cooperative federalism, improve the quality of public spending and help protect fiscal stability”.
FINANCE COMMISSION
- Article 280 of the Constitution of India provides for an FC as a quasi-judicial body.
- The President shall, within two years from the commencement of this Constitution and thereafter at the expiration of every fifth year or at such earlier time as the President considers necessary, by order constitute a Finance Commission which shall consist of a Chairman and four other members to be appointed by the President.
- It shall be the duty of the Commission to make recommendations to the President as to
(a) the distribution between the Union and the States of the net proceeds of taxes which are to be, or maybe, divided between them under this Chapter and the allocation between the States of the respective shares of such proceeds;
(b) the principles which should govern the grants in aid of the revenues of the States out of the Consolidated Fund of India;
(c) the measure needed to augment the consolidated fund of a state to supplement the resources of the panchayats and the municipalities in the state on the basis of the recommendations made by the state FC.
(d) any other matter referred to the Commission by the President in the interests of sound finance
Source: PIB
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