The fourteenth finance commission had submitted its report to the president pranab mukherjee in december 2014. Therefore, let us go through the important points about 14th finance commission. Report of the 15th finance commission for fy 202021. Fourteenth finance commission report maps of india. Reddy was appointed the chairman of the commission. It was established under article 280 of the indian constitution by the indian president. The eleventh finance commission of india was appointed by the president on 3 july 1998 for the period 20002005. The fourteenth finance commission of india was a finance commission constituted on 2 january 20.
The 14th finance commission used the 2011 population data, in addition to the 1971 data. We will update the upcoming final report with recommendations for the 202126 period here in this same article. It is in pursuance of clause 1 of article 280 of the constitution, read with the provisions of the finance commission miscellaneous provisions act, 1951 e. This was all from us in this blog of report of the 15th finance commission for fy 202021. 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. Reddy 14th finance commission holds that tax devolution is the primary route for resource transfer to. The finance commission and the credit union commission prepared a joint report, or study, that was submitted to the texas legislature in december of 2006 regarding state laws related to financial institutions that are or may be federally preempted. Earlier, the finance commission was appointed in january 20 to give its report by october 31 this year. Mar 22, 2019 14th finance commission recommendations. The ffc has radically enhanced the share of the states in the central divisible pool from the current 32 percent to 42 per cent which is the biggest ever increase in vertical tax devolution. The fourteenth finance commission report will go a long way towards promoting cooperative federalism. The 15th finance commission may split open demographic fault. State finances and 14th finance commission fc implications. Report of the fourteenth finance commission 20152020.
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 fourteenth finance commission was constituted by the president under article 280 of the constitution on jan. This is a single stage process consisting of only objective examination and no interview. The commission s chairman was former reserve bank of india governor y. The share of states in the centres taxes is recommended to be decreased from 42% during the 20152020 period to 41% for 20202021. Local bodies during the state visits of the finance commission 157 163 i.
Highlights of the 14th finance commission report business. 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. In order that the financial position of urban local bodies is. The 15th finance commission has been mandated to use data from the 2011 census. Conundrum of conditionalities article pdf available in economic and political weekly xiv48. Well talk about the implications of 14th finance commission on mr. It is a body set up under article 280 of the constitution. Its main work is to give recommendations on distribution of central tax revenues between the union and the states. The finance commission is a constitutionally mandated body that is at the centre of fiscal federalism. For the period from 1st april, 2015 to 31st march, 2020, the 14th finance commission ffc was constituted by the orders of president on 2nd january, 20 and submitted its report on 15thdecember, 2014. Read more about highlights of the 14th finance commission report on business standard. New formula of revenue sharing 15th finance commission report tabled in parliament, key highlights explained, current affairs 2020 15th finance commission to submit.
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. This report has been prepared for submission to the governor of andhra pradesh under article 151 of the 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. Its primary job is to recommend measures and methods on how revenues need to be distributed between the. Get ready for upsc civil services preliminary exam 2020 with insights insta 75 days revision plan. It is definitely going to appear in upcoming interviews and examinations. The 14 th finance commission s formula made tamil nadu lose out about 19% compared to the th finance commission s allocation ratio. 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. It was created to define the financial relations between the centre and the states. The commission is headed by former reserve bank of india rbi governor y v reddy.
Fourteen 14th finance commission economics study material. The first report, consisting of recommendations for the financial year 202021, was tabled in parliament. Contribution to this fund entitles you to claim 100% deduction under section 80g of the income tax act. 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.
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. Highlights of the presidents speech to parliament june 9. All you need to know about finance commission the hindu. Vitta ayoga was established by the president of india in 1951 under article 280 of the indian constitution. Components of total transfer to states decided by finance commission and planning commission finance ministry. Standard ncert textbooks of science physics,chemistry,biology, social from 6th to 10th standard, geography, history and political of. The final report for the period 1 april 2021 to 31 march 2026 will be.
The recommendations of the commission entered force on april 2015. 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. Here we are sharing some important information about 15th finance commission. 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. Know new recommendations were made enforceable by the 14th finance commission of india in february 2015. Displaying categorized search results for 14th finance commission advance search news. 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. Govinda rao, abhijit sen, sudipto mundle, and an jha. The commission submitted its report on 30 november 2004 and covered the period from 200510. The commission comes out with its reports highlighting reforms relating to the fiscal scenarios. It is becoming almost untenable for tamil nadu and kerala to thrive in the indian union as. Chapters 1 and 2 of this report contain audit observations on matters arising from examination of finance accounts and appropriation accounts respectively of the state government for the year ended 31 march 2016. The fivemember panel is to submit its report by october 31, 2014. Recommendations of the 14th finance commission the hindu.
The commission was headed by veteran economist of india, c. Article 275 grant in aid of revenues grantinaidstatutory grantsnonplan grants are to. 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. It was formed to define the financial relations between the central government of india and the individual state governments. Ficci economic affairs and research division highlights of 14th finance commission report, february 2015. Finance minister pranab mukherjee said that the government has accepted. The 15th finance commission may split open demographic. Gupta, member secretary, relinquished charge on 31 january 1994.
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. The commission has recommended grants for health sector under its report. The twelfth finance commission of india was appointed on 1 november 2002 to make recommendations on the distribution of net proceeds of sharable taxes between union and states. The 15th finance commission submitted the report of the commission for the financial year 202021 for further action. Jun 15, 2017 14th finance commission and its recommendations ap economy and 14th fc recommendations appsc group ii mains panchatathi secretary mains study tips click on below link for pdf of the vedio. Some of the other factors that the commission takes into account are per capita income, area, and fiscal discipline. 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. Till then this was a special lecture on finance commission and the report of the 14th finance commission from prelims point of view. The finance commission miscellaneous provisions act, 1951 additionally defines the terms of qualification, appointment and. Washington state housing finance commission report on financial statements we have audited the accompanying financial statements of the washington state housing finance commission, which comprise the statements of net position as of june 30, 2016 and 2015, and the related. Singh, members sshri ajay narayan jha, ashok lahiri, ramesh chand, anoop singh and secretary shri arvind mehta of the commission. Area is used as a criterion as a state with larger area has to incur additional administrative costs to deliver services. On march 19, 2020, the finance commission announced that it will monitor situation of covid19 before releasing its second report.
The government of india, with the approval president of india, has constituted fifteenth finance commission. The fourteenth finance commission will come into power in the year 2015. President should within two years of commencement of the constitution and thereafter on expiry of every 5th year, or at such intervals as heshe thinks necessary, would constitute a finance commission. This is the largest ever jump in percentage of devolution. Report summary the finance commission is a constitutional body formed by the president of india to give suggestions on centrestate financial relations. India economic survey 201516 key highlights the finance minister presented the economic survey 201516 before the parliament on 26 february 2016. All this when you come back after writing your prelims examination. The report of the th finance commission, said that the fiscal deficit should drop to 4. Explanatory memorandum as to the action taken on the recommendations made by the 14th finance commission in its report submitted to the president on december 15th, 2014. The 15th finance commission submitted the report for 2020. Reddy the government announced the constitution of the 14th finance commission under the chairmanship of former rbi governor y. Review and outcomes the 14th finance commission ffc was constituted on 2nd january, 20 and submitted its report on 15th december, 2014.
The 14 th finance commission has submitted its report to the president pranab mukherjee. Recommendations 14th finance commission headed by former rbi governor y. Finance commission studies texas finance commission. In addition, this section makes use of the report on indian infrastructure and services, prepared by a highpowered expert. In the case of the 14th finance commission, that was 25%. In pursuance of the provisions of article 280 of the constitution of india, and of the finance commission. The 15th finance commission may split open demographic fault lines between south and north india.895 467 163 457 654 415 592 1160 192 177 1335 63 256 490 65 1049 597 611 1242 1508 684 1141 1142 1044 1369 197 713 21 823 1512 978 440 804 267 800 625 1387 798 350 1287 914 32 613 911 416 127 886 194 1377 856