Categories: Economy

15th Finance Commission presents report for FY22-26 to Modi

N.K Singh, chairman of the 15th Finance Commission Chairman N.K. Singh submitted a copy of the report to Prime Minister Narendra Modi ,for the period 2021-22 to 2025-26. The commission is also expected to present a copy of the same to Finance Minister Nirmala Sitharaman today.

The Commission presented its report for the period 2021-22 to 2025-26 to President Ram Nath Kovind on November 4.

The report, which highlighted balance between the states and the Union will be placed on the table of the Parliament along with 'Explanatory Memorandum' by way of an Action Taken Report (ATR) as prescribed under the Constitution.

As per the terms of reference (ToR), the Commission was mandated to give its recommendations for the five-year period by October 30.

It was asked to give its recommendations on many unique and wide-ranging issues. Apart from the vertical and horizontal tax devolution, local government grants, disaster management grants, the Commission was also asked to examine and recommend performance incentives for states in many areas like power sector, adoption of DBT, solid waste management etc.

The Commission has required addressing all its ToRs in the latest report, organised in four volumes.

The panel was also asked to examine whether a separate mechanism for funding of defence and internal security ought to be set up and, if so, how such a mechanism could be operationalised.

Volume I and II, will have the main report and the accompanying annexes. Volume III is dedicated to the Union government and examines key departments in greater depth, with the medium-term challenges and the road map ahead. Volume IV is entirely focused on the states.

The report entitled 'Finance Commission in Covid Times' uses scales on its cover to indicate the balance between the states and the Union.

 

The Commission evaluated the finances of each state in great depth and came up with state-specific considerations to address the key challenges that individual states faced.

The report will build the road map for the development of the country with a sticking balance between Centre and state..

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