15th Finance Commission to examine efforts by States to deepen GST tax net
By TIOL News Service
NEW DELHI, NOV 28, 2017: THE President of India has constituted the 15th Finance Commission as per Article 280 of the Constitution. The Commission will make recommendations for the five years commencing on April 1, 2020.
This Commission will be headed by Mr N.K.Singh, former Member of Parliament and former Secretary to the Government of India. Mr Shaktikanta Das, former Secretary to the Government of India and Dr. Anoop Singh, Adjunct Professor, Georgetown University shall be the members of the Commission. Dr. Ashok Lahiri, Chairman (Non-executive, part time), Bandhan Bank and Dr. Ramesh Chand, Member, NITI Aayog shall be the Part time members of the Commission.
Mr Arvind Mehta shall be the Secretary to the Commission. The Commission is expected to submit its report by October 30, 2019.
The Commission shall make recommendations as to the following matters, namely:-
The distribution between the Union and the States of the net proceeds of taxes which are to be, or may be, divided between them under Chapter I, Part XII of the Constitution and the allocation between the States of the respective shares of such proceeds.
The Commission shall reivew the current status of the finance, debt levels, deficit, cash balances and fiscal discipline efforts of the Union and the States, and recommend a fiscal consolidation roadmap for sound fiscal management, taking into account the responsibility of the Central Government and State Governments to adhere to appropriate levels of general and consolidated government debt and deficit levels, while fostering higher inclusive growth in the country, guided by the principles of equity, efficiency and transparency. The Commission may also examine whether revenue deficit grants be provided at all.
The Commission may consider proposing measurable performance-based incentives for States, at the appropriate level of government, in following areas:
(i) Efforts made by the States in expansion and deepening of tax net under GST;
(ii) Efforts and Progress made in moving towards replacement rate of population growth and many more parameters.