Fifteenth Finance Commission meets to discuss Health Sector and Fiscal Consolidation

On May 21, 2020, the Fifteenth Finance Commission met to discuss health sector and fiscal consolidation in the country.


A high-level group was constituted by the Finance Commission on health sector. The group had submitted its report August 2019. Some of its recommendations were incorporated in the first report of the Finance Commission for the year 2020-21. The group has now been asked to recommend measures to contain the spread of COVID-19.

Role of the Group

The group will create a road map of fiscal consolidation for the GoI for the fiscal years 2021-22 to 2025-26. The group will focus on the extraordinary situation caused by COVID-19 and its economic impacts.

Now, there is a necessity to reassess the original recommendations made by the Commission especially in the health sector. The fiscal consolidation will mainly focus on medical equipment, hospital infrastructure, etc.

Fifteenth Finance Commission

The Fifteenth Finance commission recommended that the vertical devolution be reduced from 42% to 41%. Vertical devolution is the share of tax revenue that is shared by the centre with the states.

This Finance Commission had added demographic performance as new parameter in framing vertical devolution. The additional criterion of demography was included to adopt the population data from 2011 census.

About FC

The Finance Commissions are constituted under Article 280 of Constitution of India. It is constituted by the President of India every fifth year. The recommendations made by the Finance Commission are advisory in nature. The FC makes recommendations for a duration of 5 years