14th Finance Commission submits its report to President Pranab Mukherjee
The 14th Finance Commission has submitted its report to the President Pranab Mukherjee. The commission is headed by former Reserve Bank of India (RBI) governor Y V Reddy.
Finance Commission in its report has given their views on the devolution of tax receipts from the Centre to the states from 1st April 2015 to 31st March 2020. Earlier, the Finance Commission was appointed in January 2013 to give its report by October 31 this year.
But its tenure was extended till December 31 as they had sought two more months’ extension period to examine financial projections and carry out consultations with the Andhra Pradesh and Telangana governments. It also was asked to look into the Goods and Services Tax.
This report will be a key input in the preparation of the Union Budget 2015-16. However, breaking from tradition, the report is likely to be tabled in the ongoing Winter session of Parliament.
Finance Commission is constitutional body. Its provisions are mentioned in Article 280 of Constitution. It is constituted by President every fifth year or earlier time as he considers. Finance Commission consists of Chairman and four members appointed by President.