16th Finance
Commission invites suggestions on its ToR, general approach
The
Sixteenth Finance Commission has invited suggestions from the public and
interested organisations on the panel's terms of reference and the general
approach that it may adopt, a press statement said on Wednesday.
The
commission, chaired by Arvind Panagariya, is required to make its
recommendations covering a period of five years starting April 1, 2026 with
respect to the distribution of the net proceeds of taxes between the Centre and
states and the allocation between the states of the respective shares of such
proceeds.
The
commission would also recommend principles which should govern the
grants-in-aid of the revenues of the states out of the Consolidated Fund of
India and the sums to be paid to the states by way of grants-in-aid of their
revenues under Article 275 of the Constitution.
The
Finance Commission is also expected to give its recommendations regarding the
measures needed to augment the Consolidated Fund of a State to supplement the
resources of the Panchayats and Municipalities in the state on the basis of the
recommendations made by the Finance Commission of the State.
The
Commission is also mandated to review the present arrangements on
financing Disaster Management initiatives, with reference to the funds
constituted under the Disaster Management Act, 2005.
Views
are also invited on any other issue relevant to the work of the XVIFC, a press
statement said.
The
16th Finance Commission held its first meeting to discuss its terms of
reference on February 14.
The
Finance Commission is a constitutionally-mandated body established once every
five years to devise a formula for distributing net tax proceeds between the
Centre and the states as well as among states and local bodies. Currently,
India shares 41 per cent of federal taxes with states as recommended by the
15th panel.
www.business-standard.com
dt. 09.05.2024