Abstract the th finance commission has forayed into a number of areas partly warranted by its terms of reference and partly due to the approach it adopted. The government of kerala is now making efforts bring more states to support the demand to amend the current tor. Several southern states have had meetings and raised objections over points in the tor. The 15th finance commission today set up an expert committee which will advise it on matters related to the terms of reference tor that have come under attack from some non. The fourteenth finance commission had submitted its report to the president pranab mukherjee in december 2014. 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. Nonbjp ruled states to seek from president amendements in tor of 15th finance commission according to opposition sources, a memorandum, which has been drafted by the nonbjp state governments, would be presented to the president, seeking his intervention in the matter. Tor of 15th finance commission against progressive states. The 15th finance commission has introduced demographic performance of. Mar 02, 2019 other recommendations to be made by the finance commission, as per its terms of reference.
In terms of constitutional provisions, setting up 15th fc, its recommendations will cover five years commencing on april 1, 2020. Therefore, let us go through the important points about 14th finance commission. In this regard, the commission intends to constitute an expert group comprising representatives of the ministries of defence, home affairs, and finance. Nov 23, 2017 cabinet approves setting up of 15th finance commission the members of the commission and its terms of reference will be notified in the due course of time, finance minister arun jaitley said after the union cabinet meeting. The secretary15th finance commission, vide his above referred letter, a copy whereof is enclosed for reference as annexurea, has sought the views of the state government related to the terms of reference tor of the commission. The 15th fc was setup under the chairmanship of nk singh to suggest measures for the five years from 142020 to 32025. This is the largest ever jump in percentage of devolution. Fifteenth finance commission terms of reference terms of reference and the matters that shall be taken into consideration by the fifteenth finance commission in making the recommendations are as under. Apart from the four southern states, there are many more states whose population share has reduced between 1971 to 2011 these are assam. The finance commission miscellaneous provisions act, 1951 was passed to give a structured format to the finance commission and to bring it to par with world standards, by laying down rules for the qualification and disqualification of members of the commission, and for their appointment, term, eligibility and powers. The 22nd congress of the cpim appeals to the people to rally to demand amendments to the tor, in order that the fifteenth finance commission, which is a constitutional body, be able to function in a free and just manner. Jammu and kashmir finance minister, economist and jammu and kashmir peoples democratic party member, haseeb drabu, said, in an editorial in livemint commented that the commission s tor were outdated, and needed to be redrafted to make the 15th finance commission a second generation commission. Southern states have raised objections over the directive to use popu. The 15th finance commission was constituted by the president under article 280 of the constitution on november 27, 2017 to make recommendations for a fiveyear period from april 1, 2020 to march 31, 2025.
The 6member council will be headed by the president of forum for strategic initiatives, arvind virmani. The two most important differences in the tor of the 15th fc relate to i the issue. New formula of revenue sharing 15th finance commission report tabled in parliament, key highlights explained, current affairs. Bihar has asked the commission to rethink the 3% fiscal deficit limit and west bengal is looking for a way to restructure its debt. Cpim terms 15th finance commissions tor antifederal. May 18, 2018 the memorandum submitted to the president read, the terms of reference of the fifteenth finance commission raise serious concerns. Apr 11, 2018 meeting of the south finance ministers over the 15th finance commission at thiruvananthapuram on april 10. Last week, the union cabinet formally signed off on the setting up of the 15th finance commission. Contrary to the expectations of certain quarters, the controversial terms of reference tor of the 15th finance commission might actually favour the southern states.
The memorandum submitted to the president read, the terms of reference of the fifteenth finance commission raise serious concerns. The commission s chairman is nand kishore singh, with its fulltime members being ajay narayan jha, ashok lahiri and anoop singh. Crisp news summaries and articles on current events about 15th finance commission for ibps, banking, upsc, civil services. The 22nd congress of cpim expresses deep concern about the antifederal and antidemocratic underpinnings of the terms of reference tor of the 15th union finance commission fc. The finance commission is a constitutional body formed by the president. Dec 08, 2019 the 15th finance commission was constituted by the president under article 280 of the constitution on november 27, 2017 to make recommendations for a fiveyear period from april 1, 2020 to march 31, 2025. The role and functions of the council will be to advise the commission on any issue or subject related to the terms of reference. The share of states in the centres taxes is recommended to be decreased from 42% during the 20152020 period to 41% for 20202021. The terms of reference for 15th fc will be notified in due course of time.
The report of the thirteenth finance commission conundrum in. Gk, general studies, optional notes for upsc, ias, banking, civil services. Mar 29, 2018 the 15th finance commission 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 15th finance commission is the first finance commission set up after the abolishment of the planning commission. The 15th finance commission has constituted an advisory council to advise and assist the commission. Some southern states have criticised the tor saying progressive states would lose revenue if 2011 census was taken as base for devolution of central funds. The fifteenth finance commissions terms of reference tor have evoked a sharp response from southern states. The commission studies the fiscal situation of governments and makes its recommendations, which are only advisory in nature. The commission will make recommendations for the five years commencing on april 1. Here we are sharing some important information about 15th finance commission.
Constitution of fifteenth finance commission the government of india, with the approval honble president of india, has constituted fifteenth finance commission in pursuance of clause 1 of article 280 of the constitution, read with the provisions of the finance commission miscellaneous provisions act, 1951 w. 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 1 april 2020. Apr, 2018 3 critically examine whether the terms of reference of 15th finance commission violate the principles of fiscal federalism. The tor mandates the commission to use 2011 population for tax sharing and. May 21, 2018 the presidential terms of reference tor of the fifteenth finance commission have raised questions. Following are the terms of reference tor of the 15th fc. The following order made by the president is to be published for general information. The tor of the commission required it to examine whether a separate funding mechanism for defence and internal security should be set up and if so, how it can be operationalised. The report of the thirteenth finance commission conundrum in conditionalities m. One of the tor refers to shifting of population census to 2011 from 1971 for the purpose of devolution. Other recommendations to be made by the finance commission, as per its terms of reference. But on 27 november,2019, the government had issued a notification to give the first report for the financial year 202021 by 30 november 2019. Fifteenth finance commission department of economic affairs. The finance commission fc of india is the constitutional.
The 15th finance commission today set up an expert committee which will advise it on matters related to the terms of reference that have come under attack from some nonbjp ruled states such as andhra pradesh and kerala. The communist party of indiamarxist cpim on friday voiced over what it called the antifederal and antidemocratic underpinnings of the terms of reference tor of the 15th union finance commission. Reddy and reddy 2019 acknowledges that something fundamental was happening in indian fiscal federalism and has given emphasis to. Senior congress leader p chidambaram today said the terms of reference of the 15th finance commission were seriously flawed and would adversely affect the betterperforming states. The finance commission is a constitutional body formed by the president of india to give suggestions on centrestate financial relations. Ker to submit memorandum to 15th finance commission over tor. A roadmap for 15th finance commission the hindu businessline. Oct 20, 2019 bihar has asked the commission to rethink the 3% fiscal deficit limit and west bengal is looking for a way to restructure its debt. Fourteen 14th finance commission economics study material. Accounting system and the national municipal accounts manual respectively. Press release constitution of fifteenth finance commission. Finance commission is a very important constitutional bodies whose recommendations have an impact on the nature of fiscal federalism in the country.
The report of the thirteenth finance commission conundrum. Fc was to submit its report on basis of its terms of reference tor by 30 october 2019, covering a period of 5 years commencing. They are intended to reduce the share of the states in the overall tax devolution, squeeze the fiscal space. President of india constituted the 15 th finance commission on 27 november 2017 under article 280 of the constitution. President constitutes a finance commission fc every fifth year for sharing the union taxes with the states. They are qualitatively different from the terms of reference. Vitta ayoga was established by the president of india in 1951 under article 280 of the indian constitution. Latest current affairs in april, 2020 about 15th finance commission.
The fifteenth finance commission xvfc or 15fc is an indian finance commission. Reference tor of the fifteenth finance commission fc15. Explore 15th finance commission profile at times of india for. Meeting of the south finance ministers over the 15th finance commission at thiruvananthapuram on april 10. The 15th finance commission may split open demographic fault. Read more about ker to submit memorandum to 15th finance commission over tor on business standard. Terms of reference of the 15th finance commission peoples. The commission will make recommendations for the five years commencing on april 1, 2020. The 15th finance commission may split open demographic fault lines between south and north india. Pdf the terms of reference of the fifteenth finance commission are significantly different from those of earlier finance. Issues and challenges pertaining to the federal structure. The 15th finance commission may split open demographic. Improving the level and uniformity of public services can be a useful lens through which to look at the terms of reference tor of the 15th fc. Latest and breaking news on 15th finance commission.
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 turf of this constitutional body had been encroached upon to a large extent by the planning. The commission had a wide ranging terms of reference tor contained in the presidential notification. Apart from the four southern states, there are many more states whose population share has reduced between 1971 to 2011 these are assam, goa, himachal pradesh, odisha, punjab and west bengal. Know the recommendations of the 15th 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. The first report, consisting of recommendations for the financial year 202021, was tabled in parliament on february 1. The 15th finance commission 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 15th finance commission the finance commission, set up in 1951 under article 280 of the constitution, basically decides how revenue has. Kerala government today said it would submit a memorandum to the 15th finance commission against the present terms of reference, as it was against the states interests and a threat to its economy. Pdf challenges before the fifteenth finance commission. It is definitely going to appear in upcoming interviews and examinations.
It is becoming almost untenable for tamil nadu and kerala to thrive in the indian union as. At that time it was decided to give its recommendations for 1 st april 2020 31 st march 2025. Southern states have raised objections over the directive to use population data in the tor from the 2011 census and not the 1971 census that was used earlier. Report of the 15th finance commission for fy 202021. Does finance commission tor hurt interest of south india. Successive finance commissions fcs have kept the indian. On the face of it, this is a routine exercise carried out every five years to detail the fiscal.
Improving the level and uniformity of public services can be a useful lens through which to look at the terms of reference. The first finance commission was constituted vide presidential order dated 22. The southern states are not alone in reduction of population share. I am, accordingly, directed to request to furnish requisite inputs. Finance commission is constituted by the president every 5 years or earlier to take stock of distribution of proceeds from the central tax pool to states. Jun 30, 2019 a roadmap for 15th finance commission. The nk singhled 15th finance commission fc on wednesday sought to quell a raging controversy over the strong opposition from some states to its terms of reference. 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. Terms of reference of 15th finance commission seriously. The 15th finance commission today set up an expert committee which will advise it on matters related to the terms of reference tor that have come under attack from some nonbjp ruled states such. Nov 25, 2017 the terms of reference for 15th fc will be notified in due course of time. The commission, besides tax devolution, has recommended as many as 12 different. May 10, 2018 the nk singhled 15th finance commission fc on wednesday sought to quell a raging controversy over the strong opposition from some states to its terms of reference tor that allegedly militate. What are the terms of reference tor given to the 15 th fc.
The distribution between the union and the states of the net proceeds of. To realise the goals under new india 2022, here is what centre must remember. Fund and freedom the statesman june 24, 2018 much has been written about the central government changing the terms of reference tor of the fifteenth. 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 ongoing tussle between the north and the south over the terms of reference tors issued by the centre to the nk singhled 15th finance commission has let loose the stark complexities that mar indias political economy. The recommendations of the 15th finance commission will be implemented in the period 1 april 2020 to 31 march 2025. Cabinet approves setting up of 15th finance commission the members of the commission and its terms of reference will be notified in the due course of time, finance minister arun jaitley said after the union cabinet meeting. Crisp news summaries and articles on current events about 15th finance commission for. Fifteenth finance commission department of economic. Finance commission sets up experts panel for advise on its tor. When was the first commission constituted and how many commissions have been constituted so far. Report of the 15th finance commission for fy 202021 prsindia. The presidential terms of reference tor of the fifteenth finance commission have raised questions. It was formed to define the financial relations between the central government of india and the individual state governments.
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