12-11-2020 | 17:42 PM
Fifteenth Finance Commission
Context: The Fifteenth Finance Commission recently submitted its report to the President of India.
Key Recommendations
The Commission has recommended that the states shall get 41% of central tax revenues. Earlier, the Fourteenth Finance Commission had recommended 42%.
4.3 lakh crores for the local governments
Rs 1 lakh grant to health care
Rs 2.9 lakh crores of revenue deficit grants to 17 states.
The commission has recommended the states to keep aside at least 8% of their budget for building health care capacities.
The Finance Commission had recommended to set up Modernisation of Defence and Internal Security Fund. The fund is to be called Rashtriya Suraksha Naivedya Kosh. The fund is to add up to Rs 2.4 lakh crores by 2021-26. Of this, Rs 1.5 lakh crore is to be directly transferred to Consolidated Fund of India.
The fund is to be used for capital investment for defence, state police forces and paramilitary forces. The Defence Ministry will have exclusive rights over the funds.
Key Points on Fifteenth Finance Commission
Constituted by the President in November 2017.
It is headed by N K Singh.
deliberation period from the end of 2017 to the end of October 2019.
The recommendations would be applicable for the period from 2020-2025.
About Finance Commission
Finance Commission is a constitutional body for the purpose of allocation of certain revenue resources between the Union and the State Governments.
It was established under Article 280 of the Indian Constitution by the Indian President.
It was created to define the financial relations between the Centre and the states.
