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The Fifteenth Finance Commission’s consultation meeting with State Finance Ministers slated for Friday stands postponed.
While no official reason was forthcoming for the postponement, indications are that the fast-evolving situation around coronavirus — WHO has now declared Covid 19 a pandemic — may have prompted this decision.
It may be recalled that the meeting had been convened to discuss issues related to the final report of the Finance Commission for 2021-26 which is likely to be submitted in October 2020.
This meeting was to be held as part of the Commission’s continued engagement with States.
The Fifteenth Finance Commission, chaired by NK Singh, was looking to seek views of the Finance Ministers of States on how the State FRBMs can be aligned with the Central FRBM legislation and also determine the priority of the state-specific grant proposals that have been submitted by State Governments.
The meeting was also expected to discuss the projections of State Governments regarding the State Domestic Product (SDP) and the tax buoyancy projected by them for the period of the award of the Commission — this being very significant as it impacts the quantum of resources for the revenue deficit grants.
The Fifteenth Finance Commission’s terms of reference were amended by the President in November last year, extending the term of the Commission till October 2020.
While extending the term, the Commission was asked to submit two reports —, one for the year 2020-21, and the second for the period from 2021-22 to 2025-26.
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