The constitution of the 14th Finance Commission has been announced by the government. The Commission will have 5 members which will be headed by former RBI Governor Y.V. Reddy. The panel is to submit its report by October 31, 2014.
What this Commission will do?
Main purpose of the Commission:
- Recommend ways of tax sharing b/w centre and states which will apply for a five-year period beginning April 1, 2015.
- Recommend steps for pricing of public utilities such as electricity and water in an independent manner.
- Look into issues like disinvestment, GST compensation, sale of non-priority PSUs and subsidies.
- Look into the need for insulating the pricing of public utility services like drinking water, irrigation, power and public transport from policy fluctuations through statutory provisions.
- Review the state of finances, deficit and debt levels of the Centre and States, keeping in view, in particular, the fiscal consolidation roadmap suggested by the 13th Finance Commission.
- Suggest measures for maintaining a stable and sustainable fiscal environment consistent with equitable growth.
Who are the members of the panel?
Members of the Panel:
- Chairman: Dr. Y.V. Reddy
- Former Finance Secretary Sushma Nath
- NIPFP Director M. Govinda Rao
- Planning Commission Member Abhijit Sen
- Former Acting Chairman of National Statistical Commission Sudipto Mundle.