Shaktikanta Das Current Affairs
- India’s former economic affairs secretary and current member of the Finance Commission Shaktikanta Das is to be appointed as next RBI Governor. He will be the 25th Governor of the apex bank of the country.
About Shaktikanta Das
- Shaktikanta Das is a 1980 batch IAS officer of Tamil Nadu Cadre and a very prominent bureaucrat who served under both NDA and UPA governments.
- He served as economic affairs secretary from 2015 to 2017; and was key official in both big economic moves of the government viz. demonetisation and implementation of GST.
- Appointment committee of cabinet approved Shaktikanta Das appointment as RBI governor. He will serve as governor for the term of three years.
After the resignation of Urijit patel, Shaktikanta Das has been appointed as 25th governor of RBI. Urijit Patel resigned due to personal reasons. His tenure as RBI governor was about to complete in September 2019. Patel has become fourth RBI to step down before end of term. Before him, Sir Osborne Smith, Benegal Rama Rau and S Jagannathan had resigned before completion of their respective tenures.
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.