NK Singh Current Affairs

Government constitutes 15th Finance Commission under chairmanship NK Singh

The Union Government with the approval President of India has constituted 15th Finance Commission which will make recommendations for the five years commencing 1 April 2020 till 31 March 2025.

The commission will recommend devolution of shareable central taxes to States. It will also review several important aspects of federal fiscal finance. It will make its report available by 30th October 2019.

Composition of Commission

NK Singh, former bureaucrat and ex-Member of Parliament will be Chairman of 15th Finance Commission. Its other members are Shaktikanta Das, Former Secretary Economic Affairs; Dr Anoop Singh, Adjunct Professor of Georgetown University. Besides, Dr Ashok Lahiri, Chairman of Bandhan Bank and Dr Ramesh Chand, NITI Aayog Member will be the Part-time its members. Arvind Mehta will be Secretary to the Commission.

Terms of Reference of Commission

The Commission will make recommendations on distribution of net proceeds of taxes between Centre and States, the principles which should govern grants-in-aid of revenues of States out of Consolidated Fund of India. It will also suggest measures needed to augment Consolidated Fund of State to supplement resources of Panchayats and Municipalities in State on basis of recommendations made by Finance Commission of State.

It will also review current status of finance, debt levels, cash balances, deficit and fiscal discipline efforts of Centre and States and recommend fiscal consolidation roadmap for sound fiscal management. While making its recommendations, it will look at resources of Central Government and State Governments for five years commencing on 1st April 2020 on basis of levels of tax and non-tax revenues likely to be reached by 2024-25.

It is imperative for commission to examine implications of GST on finance of the Centre and states. It will look at impact of GST, including payment of compensation for possible loss of revenues for 5 years. It may also consider proposing measurable performance-based incentives for States, at appropriate level of government.

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Union Government Constitute NK Singh Committee to review FRBM Act

The Union Government has constituted a five member committee to comprehensively review and give recommendations on the Fiscal Responsibility and Budget Management (FRBM) roadmap for the future.

Composition: The committee will be headed by Former Revenue Secretary and Rajya Sabha MP, NK Singh. Its members are former Finance and Revenue Secretary Sumit Bose, Chief Economic Adviser (CEC) Dr. Arvind Subramanian, Deputy Governor of RBI Urijit Patel and Director of National Institute Public Finance and Policy (NIPFP) Rathin Roy.

The committee was constituted as per the announcement made by the Union Finance Minister Arun Jaitley in his 2016-17 Budget speech. It will submit its Report to the Union Government by the 31st October, 2016.

Terms of Reference of the Committee

  • Review the working of the FRBM Act, 2003 over last 12 years and suggest the way forward.
  • The suggestions should be submitted keeping in view the broad objective of fiscal consolidation and prudence and the changes required in the context of the uncertainty and volatility in the global economy
  • Look into various factors, aspects, considerations going into determining the FRBM targets
  • Consider the possibility of replacing absolute fiscal deficit targets with a target range that may be adjusted in line with the overall credit trends in the economy.
  • Examine the need and feasibility of aligning the fiscal contraction and expansion with credit expansion or contraction respectively in the economy.

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