By TIOL News Service

NEW DELHI, FEB 22, 2018: THE Fifteenth Finance Commission today invited suggestions from the general public and institutions, on various issues relating to the impact of the Goods & Service Tax (GST) regime and widening the tax base for both tax and non-tax revenue. The Commission would review the current status of the finance, deficit, debt levels, cash balances and fiscal discipline efforts of the Union and the States, and recommend a fiscal consolidation roadmap for sound fiscal management. The Commission would also take 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 would also examine the need to provide revenue deficit grants.

The issues to be considered by the Finance Commission include the impact on the fiscal situation of the Union Government of substantially enhanced tax devolution to States following recommendations of the 14th Finance Commission, coupled with the continuing imperative of the national development programme including 'New India – 2022'. Secondly, the Commission would also examine the impact of GST, including payment of compensation for possible loss of revenues for 5 years, and abolition of a number of cesses, earmarking thereof for compensation and other structural reforms programme, on the finances of Centre and States.

The Commission also invites suggestions on the issue regarding the efforts made by the States in expanding and deepening the tax net under the GST. A further issue requiring consideration relates to the efforts and progress made in moving towards replacement rate of population growth. Another major issue pertains to the progress made in increasing tax and non-tax revenues, promoting savings by adoption of Direct Benefit Transfers and Public Finance Management System, promoting digital economy and removing layers between the government and the beneficiaries. Lastly, the Commission would review the progress made in sanitation, solid waste management and bringing in behavioural change to end open defecation.

The Commission would make its report available by October 30, 2019, covering a period of five years commencing April 1, 2020. The Commission would use the population data of 2011 while making its recommendations. All interested organizations and individuals may send their suggestions by post, addressed to '9th Floor, Jawahar Vyapar Bhawan, Tolstoy Marg, New Delhi-110001'. Also communications can be made by email to secy-xvfc@gov.in or by visiting the website at http://fincomindia.nic.in.