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Fourteenth Finance Commission AI simulator
(@Fourteenth Finance Commission_simulator)
Hub AI
Fourteenth Finance Commission AI simulator
(@Fourteenth Finance Commission_simulator)
Fourteenth Finance Commission
The Fourteenth Finance Commission of India was a finance commission constituted on 2 January 2013. The commission's chairman was former Reserve Bank of India governor Y. V. Reddy and its members were Sushma Nath, M. Govinda Rao, Abhijit Sen, Sudipto Mundle, and AN Jha. The recommendations of the commission entered force in April 2015; they take effect for a five-year period from that date.
The government of India on 24 February 2015 accepted the recommendations of the fourteenth finance commission for increasing share of states in central taxes to 42% ,the single largest increase ever recommended. It has recommended distribution of goods to states for local bodies using 2011 population data with weight of 90% & area with weight of 10%.
by 1.2 percentage point relative to GDP.
Transfers from Union to states consist of tax devolution, non-Plan grants, Plan grants and grants for various Central Supported Schemes (CSS) including those which were transferred directly to the implementing agencies bypassing the budget.
The fourteenth finance commission is of the view that tax devolution should be the primary route of resources to the states. The commission recommends to increase the tax devolution of the divisible pool to states to 42% for years 2015 to 2020. This is 10% more compared to 32% target set by 13th financial commission.
The commission recommended that the new tax devolution should be the primary route of transfer of resources to States since it is formula based and thus conducive to sound fiscal federalism. However, to the extent that formula-based transfers do not meet the needs of specific States, they need to be supplemented by grants-in-aid.
The commission felt that new target serve the twin objectives of increasing the flow of unconditional transfers to the States and yet leave appropriate fiscal space for the Union to carry out other duties and specific purpose transfers to the States.
The commission came up with new formula to divide the 42% share of the divisible pool between the states.
Fourteenth Finance Commission
The Fourteenth Finance Commission of India was a finance commission constituted on 2 January 2013. The commission's chairman was former Reserve Bank of India governor Y. V. Reddy and its members were Sushma Nath, M. Govinda Rao, Abhijit Sen, Sudipto Mundle, and AN Jha. The recommendations of the commission entered force in April 2015; they take effect for a five-year period from that date.
The government of India on 24 February 2015 accepted the recommendations of the fourteenth finance commission for increasing share of states in central taxes to 42% ,the single largest increase ever recommended. It has recommended distribution of goods to states for local bodies using 2011 population data with weight of 90% & area with weight of 10%.
by 1.2 percentage point relative to GDP.
Transfers from Union to states consist of tax devolution, non-Plan grants, Plan grants and grants for various Central Supported Schemes (CSS) including those which were transferred directly to the implementing agencies bypassing the budget.
The fourteenth finance commission is of the view that tax devolution should be the primary route of resources to the states. The commission recommends to increase the tax devolution of the divisible pool to states to 42% for years 2015 to 2020. This is 10% more compared to 32% target set by 13th financial commission.
The commission recommended that the new tax devolution should be the primary route of transfer of resources to States since it is formula based and thus conducive to sound fiscal federalism. However, to the extent that formula-based transfers do not meet the needs of specific States, they need to be supplemented by grants-in-aid.
The commission felt that new target serve the twin objectives of increasing the flow of unconditional transfers to the States and yet leave appropriate fiscal space for the Union to carry out other duties and specific purpose transfers to the States.
The commission came up with new formula to divide the 42% share of the divisible pool between the states.