The share of states in the centres taxes is recommended to be decreased from 42% during the 20152020 period to 41% for 20202021. Guidelines for record room of panchayati raj institutions. The fourteenth finance commission report will go a long way towards promoting cooperative federalism. Govinda rao, abhijit sen, sudipto mundle, and an jha. The 14th fc submitted its report to the president of india on 15122014 and the report is made available by government of india on their website. Discuss the main recommendations of 14th finance commission.
States share in the net proceeds of union tax revenues increased to 42% from 32% earlier. Key recommendations of the 14th finance commission i. The 14th finance commission had recommended grants to states for three purposes. The standout recommendation of the 14th finance commission ffc is its recommendation that the share of states in the net proceeds of the shareable central taxes should be 42% against 32%.
In the recommendations of the 14th finance commission, the share of the 9 states has decreased as compared to the recommendations of the th finance commission. The recommendations, to be observed for a period of five years, will kick in from april 1, 2020. Andhra pradesh defies election commissions orders on transfer of collectors, sps 18 mar, 2020, 03. It recommended that both central and state governments should focus on debt consolidation and comply with the fiscal deficit and debt levels as per their respective fiscal responsibility and budget management frbm. Meanwhile, 19 states stand to gain from the new arrangement.
The 1% decrease is to provide for the newly formed union territories of jammu and kashmir, and ladakh from the resources of the central government. Uttar pradesh is the biggest loser followed by bihar. Article 275 grant in aid of revenues grantinaidstatutory grantsnonplan grants are to. Main recommendation of the twelfth finance commission. Bihar chief minister nitish kumar on wednesday expressed dissatisfaction over the 14th finance commissions recommendations accepted by the narendra modi government with reference to states, particularly bihar. State chief minister chandrababu naidu would detail the current status and future needs of. The difference between th and 14th finance commission and its impact on orissa from a view point. Union government has accepted recommendations of the 14th finance commission fc as per its agenda of cooperative federalism. But unfortunately, seasonal conditions in the dry districts of andhra and telangana have not been favourable.
The fourteenth finance commission of india was a finance commission constituted on 2 january 20. The 15th finance commission is the first finance commission set up after the abolishment of the planning commission. Article 243i of the constitution should be amended. Report for the year 202021, 15 th finance commission. This is 10 percentage points higher than the recommendation of th finance commission. In case, any loss or damage is caused to any person due to hisher treating or interpreting the contents of this blog any part thereof as correct, complete and uptodate statement of law out of ignorance or otherwise, this blog will not be liable in any manner.
It is also evident from figure 1 that bihars transfer dependence has not declined in recent years. Doc major difference between th and 14 th finance. On 5th december 2014, the 14th finance commission presented its report to the union government. The recommendations of the commission entered force on april 2015. Report of the 15th finance commission for fy 202021. The terms of reference of the commission are at annexi. The commissions chairman was former reserve bank of india governor y. Ap 14th finance commission grants to gram panchayats. Read more about 14th finance commission arrives at tirupathi in andhra pradesh on business standard. Guidelines for local body grants recommended by the fourteenth finance commission. However, the new government of andhra pradesh, after reorganization of the state, is yet to amend its fiscal responsibility and budget management act in accordance with the 14th finance commissions recommendations.
These states are andhra pradesh including telangana, assam, bihar, himachal pradesh, odisha, rajasthan, tamil nadu, uttar pradesh and uttarakhand. The twelfth finance commission tfc was appointed by president on 1st november 2002 under the chairmanship of dr. The 14th finance commission fc hasbeen hailed for its pathbreaking recommendations in cooperative federalism 1 with a significant increase in the share of state governments in the. As expected, states want more share from 14th commission.
Recommendations made by the 14th finance commission of india the major recommendations of 14th finance commission headed by prof. Government has accepted fcs recommendation to increase the devolution of tax receipts from the centre to the states to 42 percent. Summary of the recommendations of the tfc are placed at annexii. Andhra pradesh including telangana, assam, bihar, himachal pradesh, odisha, rajasthan, tamil nadu, uttar pradesh and uttarakhand in fact stand to. In the case of the 14th finance commission, that was 25%. Indian economy and issues relating to planning model answer. The 14th finance commission was setup by the president in january 2014 under the chairmanship of the former rbi governor y v reddy and its other members were sushma nath, m govinda rao, sudipto mundle, abhijit sen. Fourteenth finance commission ffc recommendations fiscal transfers in india.
The fourteenth finance commission had submitted its report to the president pranab mukherjee in december 2014. Ap finance department portal andhra pradesh finance. There are recommendations on cooperative federalism, gst, fiscal consolidation road map. The fourteenth finance commission was constituted by the president under article 280 of the constitution on jan. Website content managed by department of expenditure,ministry of finance,goi designed, developed and hosted by national informatics centre.
The government on sunday said it has released over rs 37,420 crore to states for 201516 as the first instalment of devolution as per the 14th finance commission recommendations, with uttar. Reddy 14th finance commission holds that tax devolution is the primary route for resource transfer to the state no distinction between plan and nonplan. The contents of this blog cannot be treated or interpreted as a statement of law. The bifurcation of andhra pradesh by the united progressive alliance upa government has left a troubled legacy. Key recommendations and impact on cooperative federalism. Y v reddy the share of states in the net proceeds of the shareable central taxes should be 42%. Major recommendations of 14th finance commission headed by prof. Highlights of 14th finance commission report february 2015 ficci economic affairs and research division government accepts 14th finance commission recommendation for tax devolution receipts states share in the net proceeds of union tax revenues increased to. Due to the failure of rains, crops have failed and the. Introduction the 14th finance commission 14th fc xiv fc constituted by the president on january, 2, 20 to give recommendations on specified aspects of centre state fiscal relations during 201520. Nitish kumar unhappy with 14th finance commission recommendations.
Introduction the fourteenth finance commission ffc was constituted by the president on january 2, 20 to give recommendations on specified aspects of centre state fiscal relations during 201520. This is the most important task of any finance commission, as the share of states in the net proceeds of union taxes is the. Here we are sharing some important information about 15th finance commission. Fourteenth finance commission ffc for rural and urban local bodies local bodies grant. Recommendations 14th finance commission headed by former rbi governor y.
Government accepts 14th finance commission recommendation for tax devolution. Recommendations of the 15th finance commission insightsias. As per the recommendations of the 14th finance commission, grantsinaid constitute 12% of the central transfers to states. One of the core tasks of a finance commission as stipulated in article 280 3 a of the constitution is to make recommendations regarding the distribution between the union and the states of the net proceeds of taxes. The commission noted that recommending a credible fiscal and debt trajectory roadmap remains problematic due to uncertainty around the economy.
The then prime minister manmohan singhs statement of six paragraphs in parliament on february 20, 2014 contained the promise of according special category status to the successor state of andhra pradesh. Ap fourteenth finance commission ffc grants to gram panchayats revised guidelines for release of performance grant for the period from 201718 to 201920 amendment to g. About fc composition, functions and objectives, key recommendations. This note presents an overview of the changes to the fiscal architecture in india over the past year, as well as those anticipated in the near future. Download 15th finance commission report pdf for upsc 2020. Explore 14th finance commission photos and videos on. While the narendra modi government may be gloating over the 14th finance commissions recommendation increasing the share of states in central taxes to 42 per cent from the current 32 per cent, but the share of nine states has decreased. Key recommendations of 14th finance commissionmains2016. The accepted recommendations are for the fiveyear period 201516 to 201920. The report of the fifteenth finance commission, along with an action taken report. This is the largest ever jump in percentage of devolution.
Article 280 of the constitution of india requires the constitution of a finance commission every five years, or earlier. Recommendations of the 14th finance commission the hindu. Previously, the planning commission undertook plan expenditures, but now, with more power in the hands of fc, revolutionary measures to equalise opportunities, bring uniformity in public services and promote labor intensive growth. On the whole the finance commissions recommendations have helped us to a large extent.
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