The commission has to submit the report to the government by october 30. Get complete information on twelfth finance commission of india. Thetfc submitted its report on 30 november 2004 covering the period from 2005 to 2010. Department of administrative reforms and public grievances, ministry of personnel, public grievances and pensions was set up in 1964 with a view to facilitate the pursuit of excellence in governance through promotion of improvements in government structures and processes etc. Macroeconomic policy simulations for the 14th finance.
Finance commission of india composition, functions, list. Last week, the union cabinet formally signed off on the setting up of the 15th finance commission. The finance commission miscellaneous provisions act, 1951 additionally defines the terms of qualification. 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 is headed by former reserve bank of india rbi governor y v reddy. The 15th finance commission submitted the report of the commission for the financial year 202021 for further action. According to him, the state government will get a benefit of rs 6,507 crore in case it meets the targets in the 12th finance commission report, including the reduction of revenue and fiscal deficits. The standout recommendation of the 14th finance commission ffc is its recommendation that the share of states in the net proceeds of the shareable central taxes. Guidelines for local body grants recommended by the fourteenth finance commission.
The twelfth finance commission was incorporated in the year 2005. Abhishek kumar national institute of public finance and policy new delhi 1. Rajan kumar gupta md nazim khan tanmaya kundu bhaskar md. The present finance commission, which is the twelfth, was. It was formed to define the financial relations between the centre and the. The 12th fc was appointed in november 2002 under the chairmanship of c. Recommendations of thirteenth finance commission international. Get complete information on twelfth finance commission of. We want to know the implications as the state is going to lose heavily if the finance commissions recommendations are not kept in mind, he said.
The following points highlight the six main recommendations of the tenth finance commission tfc. Report summary the finance commission is a constitutional body formed by the president of india to give suggestions on centrestate financial relations. Vitta ayoga was established by the president of india in 1951 under article 280 of the indian constitution. Report of the 15th finance commission for fy 202021. The fourteenth finance commission was constituted by the president under article 280 of the constitution on jan.
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. Symposium on report of twelfth finance commission jstor. The commission made recommendations for the distribution of the net proceeds of the taxes between the union and the states. Annexure and appendices of the report of the twelfth finance commission. The first report, consisting of recommendations for the financial year 202021, was tabled in parliament. Macroeconomic policy simulations for the 14 th finance commission by nipfp team 1. Report of the twelfth finance commission 20052010 authored by. A sound system of intergovernmental fiscal transfers constitutes the cornerstone of a strong and stable federal polity. Govt to study 12th finance commission recommendations. The 14 th finance commission has submitted its report to the president pranab mukherjee. Since 1951, eight finance commissions have so far been appointed. Local bodies during the state visits of the finance commission 157 163 i. Recommendations made by the 14th finance commission of india the major recommendations of 14th finance commission headed by prof. The 15th finance commission may split open demographic fault lines between south and north india.
The twelfth finance commission was appointed under the chairmanship of c. The commission was headed by veteran economist of india, c. The report of the th finance commission, is perhaps more comprehensive. 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. First finance commission to the twelfth finance commission. On february 2, 2005 union government accepted all recommendations of the 12th finance commission. Apart from the summary of the twelfth finance commissions report for bihar, as presented below, this document also contains two memorandums presented to the commission one by the state government and other by the political parties and professional organisations, prepared by.
The commission submitted its report on november 30, 2004 covering the period 200510. Commission, besides tax devolution, has recommended as many as 12. The twelfth finance commission tfc was appointed by president on 1st november 2002 under the chairmanship of dr. The 15th finance commission may split open demographic.
First finance commission to the twelfth finance commission book online at best prices in india on. Main recommendation of the twelfth 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. It was formed to define the financial relations between the central government of india and the individual state governments. It highlights the fact that there has been a serious deterioration in the fiscal. Recommendations of the tenth finance commission tfc.
The fourteenth finance commission had submitted its report to the president pranab mukherjee in december 2014. Chairman of the fifteenth finance commission n k singh submitted the interim report of the commission to president ram nath kovind for the financial year 202021 for further necessary action. States fear that union will use it as an excuse to keep more funds to itself, and the devolution may be reduced to less than 42%. Report of the third finance commission constitution of the commission and its terms of references and. The 15th finance commission submitted its interim report on devolution formula for the financial year 202021 to president ram nath kovind. Tfc was appointed on november 1, 2002 to make recommendations regarding the distribution between the union and.
Approach of the twelfth finance commission to local body. 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. Recommendations of the 14th finance commission the hindu. Read more about guidelines for local body grants recommended by the fourteenth finance commission. Administrative reforms commission in its report on local government has suggested the development of a national municipal accounting manual. It is wise to remember that the incentives and measures the 12th finance commission introduced while making allocation did help to enhance fiscal discipline in many states after that. A study by rbi of municipal finance has made out a case for a municipal finance information system.
A short history of the first finance commission and why. Singh, members sshri ajay narayan jha, ashok lahiri, ramesh chand, anoop singh and secretary shri arvind mehta of the commission. Report of the second finance commission introduction and recommendations 4. Report of the first finance commission introduction and summary of recommendations 3. It is becoming almost untenable for tamil nadu and kerala to thrive in the indian union as. 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. Under the niemeyer award, bengal had been awarded 20% of the states income tax share, which now plummeted to 11. The recommendations would be applicable for the period from 20202026. Summary of the recommendations of the tfc are placed at annexii. On the face of it, this is a routine exercise carried out.
The commission submitted its report on 30 november 2004 and covered the period from 200510. The first such commission was constituted on november 19, 1951. The following points highlight the four main recommendations of the eleventh finance commission. The article also provides information on finance commission of india chairman for upsc exam. The 15th finance commission submitted the report for 2020. Rangarajan on november 1, 2002 to make recommendations regarding the distribution between the union and the states of net proceeds of shareable taxes, the principles which should govern the grants inaid of the revenues of states from the consolidated fund of india and the. It was established under article 280 of the indian constitution by the president of india.
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. In addition, merely because the tors of the commission require it to use 2011 census data does not mean that it cannot use any other census data. Suggestions for a restructuring of the public finances so as to restore budgetary balance and maintain macroeconomic. The terms of reference of the commission are at annexi. Finance panel to discuss centre, states fiscal responsibility and budget management 03 mar, 2020, 06.
Essential recommendations of finance commission of india. Finance commission of india article 280 deals with finance commission of india. This revised report is prepared by nipfp team consisting of n r bhanumurthy, sukanya. Its main work is to give recommendations on distribution of central tax revenues between the union and the states. The eleven finance commissions, which have preceded the present one, have, through their recommendations, given. The twelfth finance commission of india was appointed on 1 november 2002 to make recommendations on the distribution of net proceeds of sharable taxes. Report of the twelfth finance commission and census of india, 2001. With regard to the recommendations made by the finance commission of the state. The 12th finance commission has recommended a total transfer of. About finance commission the finance commission of india came into existence in 1951.
909 1036 891 52 971 464 773 35 331 630 453 1486 1034 1517 468 1479 181 599 1177 1382 1540 1437 532 799 417 523 46 449 1489 1043 251 1152 247 874 282 473 608 1230