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The 15th Finance Commission has said that it will reconcile data from several sources to come up with its own conclusion of a reliable economic data.
The data includes key financial variables of state expenditure and debt from Comptroller and Auditor General(CAG),data on central government’s debt and public sector borrowings.
Further,the finance commission has expressed concerns on shrinking household savings as that would eventually crowd out private sector investment.
However,the commission was satisfied with the increase in direct taxes collections.But projections of indirect tax collections especially with regard to the goods and services tax (GST) have not been as healthy.
The Finance Commission is constituted by the President under Article 280 of the Constitution mainly to give its recommendations on distribution of tax revenues between the Union and the States and amongst the States themselves.
The Commission is appointed every five years.It consists of a Chairman and four other members.The 15th finance commission chairman is N.K. Singh.Its recommendations will cover the five year period commencing from 1st April,2020.
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