The Fourteenth Finance Commission, headed by former Reserve Bank of India Governor YV Reddy, has submitted its report to the President of India.
The recommendations relate to the period April 1, 2015 to March 31, 2020. The Commission — a constitutional body — was recently been given time till December 31 to submit its report. The extension was given to enable it to examine financial projections and carry out consultations with the Governments of Andhra Pradesh and Telengana. Besides spelling out the formula for devolution of Central taxes, the Finance Commission report is said to have made some observations on Goods and Services Tax (GST). It has considered the impact of the proposed GST on the finances of the Centre and States and the mechanism of compensation in case of any revenue loss.