What is on the agenda for the 16th Finance Commission? | Explained
8 months, 3 weeks ago

What is on the agenda for the 16th Finance Commission? | Explained

The Hindu  

The story so far: The 16th Finance Commission has begun its work, established under Article 280 of the Indian Constitution, primarily focusing on the devolution of the consolidated fund. The National Commission on Urbanisation in the mid-80s described cities as “engines of growth.” Although this view is somewhat narrow, the reality is that cities contribute around 66% of India’s GDP and about 90% of total government revenues. The 13th Finance Commission observed that “parallel agencies and bodies are emasculating local governments both financially and operationally.” Local governments require support from Union and State governments through funds, functionaries, and technical aid. A McKinsey Global Institute report warns that if India continues investing in urban infrastructure at current rates, urban infrastructure will fall short, leading to water supply issues and untreated sewage.

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History of this topic

CAG and 16th Finance Commission hold consultation on public finance
3 weeks, 2 days ago

CAG and 16th Finance Commission hold consultation on public finance

The Hindu  

Comptroller and Auditor General of India K. Sanjay Murthy on Wednesday held a meeting with the 16th Finance Commission, which was led by its Chairperson Arvind Panagariya, in Bhopal. The deliberations mainly focused on three key areas: Union and State finances, local bodies, and Public Sector Enterprises, among others,” said the supreme auditing body. The CAG chief shared various audit …

Karnataka rural bodies get first instalment of Centre's Financial Commission grants
4 months, 1 week ago

Karnataka rural bodies get first instalment of Centre's Financial Commission grants

India Today  

The central government has released the first instalment of the 15th Finance Commission grants for the financial year 2024-25 to Karnataka’s rural local bodies, the Union Ministry of Panchayati Raj announced on Friday. “The Government of India through the Ministry of Panchayati Raj and Ministry of Jal Shakti recommends the release of XV-FC grants to the Rural Local Bodies, which …

5 states seek larger share from 16th Finance Commission
6 months, 2 weeks ago

5 states seek larger share from 16th Finance Commission

Hindustan Times  

Kerala chief minister Pinarayi Vijayan said on Thursday that the 16th Finance Commission should factor in the rising trend in surcharges and cesses levied by the Union government and suggested that states should receive 50% from tax devolution – higher than the 41% recommended by the 15th Finance Commission. Vijayan’s comments came while inaugurating a conclave of finance ministers from …

16th Finance Commission: Kerala to host interstate meet
6 months, 3 weeks ago

16th Finance Commission: Kerala to host interstate meet

New Indian Express  

THIRUVANANTHAPURAM: With more and more non-BJP ruled states crying foul over alleged anomalies in devolution of Central funds, the Kerala government is hosting a fiscal conclave in Thiruvanathapuram on September 12 to discuss the approach towards the 16th Finance Commission. A united stand of the state governments on fiscal matters has become imperative and the meeting will help achieve this,” …

Finance Commission open to revising Karnataka's tax devolution criteria
6 months, 4 weeks ago

Finance Commission open to revising Karnataka's tax devolution criteria

New Indian Express  

BENGALURU: The 16th Finance Commission on Thursday said that it is open to considering the Karnataka government’s suggestion on rejudging the criterion with regard to devolution of taxes to the states, but the final decision is “far away”. Commission chairman Dr Arvind Panagariya said Karnataka has submitted a proposal stating that the 45% weightage given to the distance of per …

16th Finance Commission members to visit Karnataka; govt. to seek a greater share in devolution of funds to correct ‘injustice’
7 months, 1 week ago

16th Finance Commission members to visit Karnataka; govt. to seek a greater share in devolution of funds to correct ‘injustice’

The Hindu  

As the Chairman and members of the 16th Finance Commission are expected to visit Karnataka this month-end, Chief Minister Siddaramaiah on Friday held a preliminary discussion with officials of the State Finance Department and Chief Minister’s economic adviser Basavaraj Rayaraddi, MLA, to work out a plan to seek more funds and correct the “injustice” done to the State in the …

Guest Column| 16th finance commission: Neutral arbiter with unique opportunity
8 months ago

Guest Column| 16th finance commission: Neutral arbiter with unique opportunity

Hindustan Times  

The President of India constituted the 16th Finance Commission under Article 280 of the Constitution to make recommendations on the distribution of net tax proceeds between the Union and the states, the allocation between the states of respective shares of such proceeds, grants-in-aid to the states, and measures needed to supplement the resources of the local bodies during the award …

Guest Column| 16th finance commission: Neutral arbiter with unique opportunity
8 months ago

Guest Column| 16th finance commission: Neutral arbiter with unique opportunity

Hindustan Times  

The President of India constituted the 16th Finance Commission under Article 280 of the Constitution to make recommendations on the distribution of net tax proceeds between the Union and the states, the allocation between the states of respective shares of such proceeds, grants-in-aid to the states, and measures needed to supplement the resources of the local bodies during the award …

16th Finance Commission sets up five-member Advisory Council: What are its role and functions?
8 months, 2 weeks ago

16th Finance Commission sets up five-member Advisory Council: What are its role and functions?

India TV News  

The Sixteenth Finance Commission, led by Arvind Panagariya, set up a five-member Advisory Council aimed at expanding the scope of the Commission's work. Members of Advisory Council Poonam Gupta -- Chief of the panel DK Srivastava Neelkanth Mishra Pranjul Bhandari Rahul Bajoria Role and Functions of Advisory Council The statement regarding the role and functions of the Advisory Council outlined …

Sixteenth Finance Commission constitutes advisory council
8 months, 2 weeks ago

Sixteenth Finance Commission constitutes advisory council

Live Mint  

New Delhi: The Sixteenth Finance Commission has constituted an advisory council consisting of eminent economists D.K. Poonam Gupta will be the Convenor of the Advisory Council whose role will also be to assist the Commission in the preparation of papers/ research studies and to monitor or assess studies commissioned by the Finance Commission, thereby enhancing the Commission's understanding of the …

‘Is Finance Commission merely facade under BJP’: Karnataka CM Siddaramaiah
1 year, 1 month ago

‘Is Finance Commission merely facade under BJP’: Karnataka CM Siddaramaiah

Hindustan Times  

Karnataka Chief Minister Siddaramaiah has hit out at the Central government over the release of funds for the state, saying that the dwindling grants-in-aid and the glaring absence of budgeted funds raise the question of whether the autonomy of the Finance Commission is merely a 'facade' under the BJP. Siddaramaiah further said that under the 14th Finance Commission, Karnataka received …

President clears members’ names; 16th Finance Commission all set to kick off
1 year, 1 month ago

President clears members’ names; 16th Finance Commission all set to kick off

The Hindu  

Setting the stage for the Sixteenth Finance Commission to start its work soon, the Centre late on Wednesday notified the appointment of four full-time members for the panel, which is chaired by the first NITI Aayog vice-chairman and Columbia University professor Arvind Panagariya. Former Expenditure Secretary Ajay Narayan Jha, who was also part of the Fifteenth Finance Commission that was …

Government appoints four members to newly-constituted 16th Finance Commission
1 year, 1 month ago

Government appoints four members to newly-constituted 16th Finance Commission

India TV News  

The government has appointed former expenditure secretary Ajay Narayan Jha and SBI Group Chief Economic Advisor Soumya Kanti Ghosh, along with two other members, to the newly-formed 16th Finance Commission. Among the appointed members, Ajay Narayan Jha, who also served in the 15th Finance Commission; retired bureaucrat Annie George Mathew; and Artha Global Executive Director Niranjan Rajadhyaksha will serve as …

Fifth State Finance Commission holds meeting
1 year, 2 months ago

Fifth State Finance Commission holds meeting

The Hindu  

The fifth State Finance Commission has asked urban local bodies to design long-term strategies to boost revenue using its revenue base. Commission chairman C. Narayanaswamy and members Mohammad Sanaulla, S. Phonde, and UjjwalKumar Ghosh Managing Director, Karnataka State Financial Corporation, chaired a meeting to evaluate the financial position of ULBs and Panchayat Raj institutions and make its recommendations to the …

DC Edit | Panagariya will be a perfect fit
1 year, 2 months ago

DC Edit | Panagariya will be a perfect fit

Deccan Chronicle  

The Central government has appointed noted economist and well-known advocate of free markets, Arvind Panagariya, as the chairman of the 16th Finance Commission. While it is important to ensure that each citizen gets financial support from the Central government, another argument is that any further increase would serve as a disincentive to state governments in taking sound financial decisions. Currently, …

16th Finance Commission for measures to provide resources to disaster management
1 year, 3 months ago

16th Finance Commission for measures to provide resources to disaster management

Hindustan Times  

New Delhi: The government on Wednesday announced that the 16th Finance Commission will recommend measures to provide adequate resources to Panchayats and for disaster management besides recommending distribution of tax revenues between the Union and the states. The 16th Finance Commission will recommend measures to provide adequate resources to Panchayats and disaster management. Announcing the decision, information and broadcasting minister …

Charting the path for the Sixteenth Finance Commission
1 year, 8 months ago

Charting the path for the Sixteenth Finance Commission

The Hindu  

The Sixteenth Finance Commission is due to be set up shortly. The vertical and horizontal dimensions The Fourteenth Finance Commission had raised the share of States in the divisible pool of central taxes to 42% from 32%. There may not be a strong case for recommending any further increase in the States’ share of central taxes in view of the …

Sixteenth Finance Commission will be constituted in November
1 year, 11 months ago

Sixteenth Finance Commission will be constituted in November

The Hindu  

The Union government is gearing up to constitute the Sixteenth Finance Commission in November this year to recommend the formula for sharing revenues between the Centre and the States for the five-year period beginning 2026-27, a top government official has confirmed to The Hindu. The last time the Constitutional body was given a six-year mandate was for the Ninth Finance …

Still no recognition of the third tier
3 years, 11 months ago

Still no recognition of the third tier

The Hindu  

This article is a brief critique of the recommendations of the Fifteenth Finance Commission with regard to local governments. Higher vertical devolution While there are some critical lacunae in its recommendations regarding local governments, the Fifteenth Finance Commission has several positive aspects to be said in its favour. The Fourteenth Finance Commission, however, cut the performance grant share to 10% …

What 15th Fin Comm award means for India’s states, in five charts
4 years ago

What 15th Fin Comm award means for India’s states, in five charts

Live Mint  

The 15th Finance Commission, like all its predecessors, was faced with the gigantic task of making all stakeholders happy. At the heart of the finance commission’s mandate is to decide, every five years, how the Centre shares revenues with states having diverse sizes and needs. For 2021-26, the XVFC has set a 41% share for states in the divisible pool …

Navigating the storm: The Hindu Editorial on the Fifteenth Finance Commission
4 years, 1 month ago

Navigating the storm: The Hindu Editorial on the Fifteenth Finance Commission

The Hindu  

A pair of balanced scales representing the Union of India and the States, the cover visual of the Fifteenth Finance Commission’s report for the period 2021-22 to 2025-26, seeks to highlight the Commission’s endeavour to maintain an equitable approach at a time when the Centre and States are facing unprecedented revenue stress and fiscal demands. The Centre has accepted much …

The Finance Commission doesn’t rock the federal boat
4 years, 1 month ago

The Finance Commission doesn’t rock the federal boat

Live Mint  

BENGALURU : The four-volume report of the Fifteenth Finance Commission —titled “Finance Commission in Covid Times"—is rich in analysis. There were apprehensions that the Commission could reduce the states’ share in tax devolution—in fact, in its first report, it had stated that it would recommend sector-specific and performance-based grants in the final report. Local bodies On local bodies, the commission …

15th finance panel stresses on dialogue with GST council
5 years, 9 months ago

15th finance panel stresses on dialogue with GST council

India TV News  

Finance Commission Chairman N K Singh Tuesday stressed the need for a dialogue between the commission and Goods and Services Tax council to address various concerns on the taxation regime. The chairman said he had written to the previous finance minister Arun Jaitley about the need for suitable the consultative mechanism between the finance commission and the GST council. Pointing …

Arun Jaitley defends 15th Finance Commission on revenue allocation
6 years, 2 months ago

Arun Jaitley defends 15th Finance Commission on revenue allocation

Live Mint  

New Delhi: Finance minister Arun Jaitley on Friday defended the terms of reference of the 15th Finance Commission and said the body headed by N.K. Jaitley’s comments follow protests by many states, especially in the south, over the 15th Finance Commission’s mandate to use 2011 census data rather than the 1971 one for resource allocation. Southern states allege that if …

15th Finance Commission: Kerala won't accept decisions that undermine state's fiscal domain, says Thomas Isaac
6 years, 8 months ago

15th Finance Commission: Kerala won't accept decisions that undermine state's fiscal domain, says Thomas Isaac

Firstpost  

We are not against the finance commission. Kerala’s Communist Party of India -led Left Development Front government has been among those state governments including West Bengal, Andhra Pradesh, Delhi, Punjab, and Puducherry to oppose the commission’s decision. In an interview with IndiaSpend, Isaac discusses concerns about the details of the finance commission, his government’s plan to introduce a healthcare plan …

Four southern govts say terms of reference of 15th Finance Commission unfair: Meet brings back North versus South debate
6 years, 11 months ago

Four southern govts say terms of reference of 15th Finance Commission unfair: Meet brings back North versus South debate

Firstpost  

Three non-BJP ruled southern states and Union Territory Puducherry came out against the Terms of Reference stipulated by the Centre in the 15th Finance Commission for devolution of funds to states. After Tuesday’s meeting, there were few who thought that there was an attempt to reduce the Centre’s share to states through the 15th Finance Commission, he said. He added …

From fiscal deficits to slowdown in economy, 15th Finance Commission stares at many challenges
7 years, 2 months ago

From fiscal deficits to slowdown in economy, 15th Finance Commission stares at many challenges

Firstpost  

For 15th Finance Commission, GST will usher in higher tax buoyancy by bringing in a large number of new tax payers into the net. For the 15th Finance Commission, GST will usher in higher tax buoyancy by bringing in a large number of new tax payers into the net. The NITI Aayog has pointed out that social sector expenditure has …

15th Finance Commission to study impact of GST on finances, fiscal deficit and debt levels: N K Singh
7 years, 4 months ago

15th Finance Commission to study impact of GST on finances, fiscal deficit and debt levels: N K Singh

Firstpost  

New Delhi: N K Singh, the newly appointed Chairman of the 15th Finance Commission, on Monday said it is imperative for such a panel to examine implications of GST on finance of the Centre and states. “The fact that GST was propelled through several constitutional amendments which included the states being participants in these constitutional amendments enjoins upon any Finance …

N.K. Singh to helm 15th Finance Commission
7 years, 4 months ago

N.K. Singh to helm 15th Finance Commission

ABP News  

New Delhi, November 27 : The 15th Finance Commission has been constituted on Monday with N.K. "The Government of India, with the approval President of India, has constituted Fifteenth Finance Commission in pursuance of clause of article 280 of the Constitution, read with the provisions of the Finance Commission Act, 1951 with effect from 27th November, 2017," the Ministry of …

15th Finance Commission to assess GST impact on tax revenues, allocate more resources to states, says Arun Jaitley
7 years, 4 months ago

15th Finance Commission to assess GST impact on tax revenues, allocate more resources to states, says Arun Jaitley

Firstpost  

Recommendations of 15th Finance Commission will have to be in place by April 1, 2020 New Delhi: The Cabinet on Wednesday approved the setting up of the 15th Finance Commission which will assess the tax resources of the nation and suggest a formula for their devolution among states. The members of the Commission and its terms of reference will be …

14th Finance Commission resets centre-state fiscal relations - IndiaTV News
10 years, 1 month ago

14th Finance Commission resets centre-state fiscal relations - IndiaTV News

India TV News  

New Delhi: The Finance Commission has suggested raising share of states in central taxes to 42% from current 32%. According to the increased devolution suggested in the report of the 14th Finance Commission, the states will get Rs.3.48 trillion in 2014-15 and Rs.5.26 trillion in 2015-16. “The higher tax devolution will allow states greater autonomy in financing and designing of …

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