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15th finance commission’s national survey map begins with Arunachal Pradesh

15th finance commission’s national survey map begins with Arunachal Pradesh

In news:

The 15th finance commission (FFC), which looks at the sharing of tax revenues between central and state governments, will launch its national level interactions from Arunachal Pradesh.

It will be the first time a finance commission will be doing so. Disclosing this, N.K. Singh, chairman of the FFC said, the visit is more than symbolic. In the process India is sending a clear signal to China that Arunachal Pradesh is an integral part of its sovereign territory.

The Finance Commission 

The Finance Commission was established by the President of India in 1951 under Article 280 of the Indian Constitution. It was formed to define the financial relations between the central government of India and the individual state governments. The Finance Commission (Miscellaneous Provisions) Act of 1951 additionally defines the terms of qualification, appointment and disqualification, the term, eligibility and powers of the Finance Commission. As per the Constitution, the Commission is appointed every five years and consists of a chairman and four other members.

Since the institution of the first Finance Commission, stark changes in the macroeconomic situation of the Indian economy have led to major changes in the Finance Commission's recommendations over the years.

The 15th finance commission (FFC):

The 15th finance commission was constituted in 2017 and is chaired by N.K.Singh, former member of the Planning Commission of India.

The FFC’s other members include former economic affairs secretary Shaktikanta Das, Georgetown University adjunct professor Anoop Singh, Bandhan Bank chairman and former chief economic adviser Ashok Lahiri and NITI Aayog member Ramesh Chand.

The commission, whose recommendations will come into effect for the five years starting 1 April 2020, will submit its report by 30 October 2019.

Apart from performing its constitutionally mandated task of deciding on the distribution of shareable central tax proceeds among the centre, states and local bodies, for the first time in the post-goods and services tax (GST) era, the commission will also recommend the appropriate levels of general and consolidated government debt and deficit levels for both the centre and the states.

 

 

 

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