15th Finance Commission submits its recommendations to FM Sitharaman1 min read . Updated: 17 Nov 2020, 02:53 PM IST
- The report submitted by FFC chairman N.K. Singh to the finance minister in the presence of other members of the commission
- The Commission was mandated to give its recommendations for five years from 2021-22 to 2025-26 by 30 October, 2020
"Chairman N.K. Singh and members of the 15th Finance Commission presented a copy of the Commission's report for the period 2021-22 to 2025-26 to finance minister Nirmala Sitharam today," the finance ministry tweeted.
As per the terms of reference (ToR), the Commission was mandated to give its recommendations for five years from 2021-22 to 2025-26 by 30 October, 2020. The report titled 'Finance Commission in Covid Times' has recommendations on a various range of issues such as vertical and horizontal tax devolution, local government grants and disaster management grant. The Commission was also asked to examine and recommend performance incentives for states in many areas like power sector, adoption of direct benefit standard and solid waste management.
"The Commission was also asked to examine whether a separate mechanism for funding of defence and internal security ought to be set up and if so how such a mechanism could be operationalised. The Commission has sought to address all its ToRs in this Report to the Union government," said Finance Commission in a statement.
The report has been organised in four volumes — Volume 1 and 2 contain the main report and the accompanying annexes. Volume 3 is devoted to the key departments of the central government in greater depth identifying the medium-term challenges and the roadmap for future. Volume 4 on states, their finances, and how to deal with the key challenges each of them faces.
Once tabled in Parliament, the report and an action taken report will be placed in public domain.
The report submitted by FFC chairman N.K. Singh to the finance minister in the presence of other members of the commission Ajay Narayan Jha, Prof Anoop Singh, Dr Ashok Lahiri and Dr Ramesh Chand and Arvind Mehta.
The Commission had submitted its report to Prime Minister Narendra Modi on Monday. It was presented to the President of India, Ram Nath Kovind on 4 November.