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Grants-in-aid
June 13 , 2020
1500 days
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- The Terms of Reference of the Finance Commission require it to recommend grants-in-aid to the States.
- These grants include
- Revenue deficit grants
- Grants to local bodies
- Disaster management grants
- For 2020-21, the Commission has recommended devolution of 41% of the divisible pool of taxes.
- This is 1% lower than the percentage recommended by the 14th Finance Commission.
- The 15th Finance Commission used the following criteria while determining the share of states:
- 45% for the income distance
- 15% for the population in 2011
- 15% for the area
- 10% for forest and ecology
- 12.5% for demographic performance
- 2.5% for tax effort.
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