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Former Expenditure and Revenue Secretary NK Singh will chair the Fifteenth Finance Commission.
Former Economic Affairs Secretary Shaktikanta Das and adjunct professor of Georgetown University Anoop Singh will be its full- time members. Chairman of Bandhan Bank Ashok Lahiri and NITI-Aayog member Ramesh Chand will be part-time members.
IAS officer Arvind Mehta will be the Secretary to the Commission.
The Union Cabinet had on November 22 approved the setting up of the Fifteenth Finance Commission.
The panel, which is a statutory body under Article 280(1) of the Constitution, will prescribe the formula for devolution of taxes between the Centre and States for the five years commencing on April 1, 2020. It is expected to submit its report by October 30, 2019.
This time around, the Finance Commission will have to finalise its recommendations in a new setting — after the abolition of the Planning Commission and Plan and Non-Plan expenditure as well as the roll out of the Goods and Services Tax (GST).
“The impact of the GST, including payment of compensation for possible loss of revenues for five years, and abolition of a number of cesses, earmarking thereof for compensation and other structural reforms programme, on the finances of Centre and States,” said the terms of reference.
It will also review the current status of the finance, deficit, debt levels, cash balances and fiscal discipline efforts of the Union and the States and suggest a fresh fiscal consolidation roadmap.
Significantly, Singh, who is a former Member of the Rajya Sabha, had recently chaired a committee to review the FRBM Act and goalposts.
The panel has also been tasked with proposing measurable performance-based incentives for States based on deepening the GST net, population, progress in capital expenditure, sanitation and drinking water efforts as well steps to curb populist measures.
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