The government on Monday announced the 15th Finance Commission. It will be chaired by former parliamentarian and revenue and expenditure secretary NK Singh.
Its tenure will be till October 30, 2019. By then, the panel will have to submit its final report on the formula by which the Centre and states will share revenue between April 2020 and 2025.
The other members of the commission are Former Economic Affairs Secretary Shaktikanta Das, Former Chief Economic Adviser Ashok Lahiri, Niti Aayog Member Ramesh Chand and Georgetown University Professor Anoop Singh. The Cabinet approved the setting up of the commission earlier in November.
“The commission shall review the current status of the finance, deficit, debt levels, cash balances and fiscal discipline efforts of the Union and the states,” the government said in a notification. It will also recommend a roadmap for sound fiscal management. “The Commission may also examine whether revenue deficit grants be provided at all.”
The Finance Commission will also study the impact of the Goods and Services Tax, including the payment of compensation for possible loss of revenue for five years, and abolition of many cesses due to the nationwide tax.
It is also expected to examine the progress made in “promoting ease of doing business by effecting related policy and regulatory changes and promoting labour intensive growth”.
The 14th Finance Commission was set up on January 2, 2013 and its recommendations covered the period between April 1, 2015 and March 31, 2020.