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Recommendations of the 15th Finance Commission
February 6 , 2020
1674 days
1968
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- The interim report of the 15th Finance Commission (FC) has been tabled in Parliament this budget session.
- 15th Finance Commission’s chairman is N. K. Singh.
- Article 280 of the Constitution of India provides for a quasi-judicial body, the Finance Commission.
- It is constituted by the President of India every fifth year.
- The 15th FC makes recommendations for the period of 2020-2026 (6 years).
Key recommendations
- The demographic performance is the new crucial parameter that has been added to the list.
- Urban local bodies, especially municipalities in cities with populations of more than one million, are set to get a larger share of the devolution.
- Devolution of taxes to states:
- The share of states in the centre’s taxes is recommended to be decreased from 42% to 41%.
- Among the States, with the exception of Tamil Nadu, all the other four southern States see a reduction in the recommended share of taxes for the year 2020-21.
- FC intends to set up an expert group to initiate a non-lapsable fund for defense expenditure.
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