{"id":224318,"date":"2023-01-31T19:04:10","date_gmt":"2023-01-31T13:34:10","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=224318"},"modified":"2023-02-20T14:53:01","modified_gmt":"2023-02-20T09:23:01","slug":"process-to-set-up-sixteenth-finance-commission-set-to-kick-off-soon","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/process-to-set-up-sixteenth-finance-commission-set-to-kick-off-soon\/","title":{"rendered":"Process to set up Sixteenth Finance Commission set to kick off soon"},"content":{"rendered":"\n

Source: <\/b>The post is based on the article <\/span>\u201cProcess to set up Sixteenth Finance Commission set to kick off soon\u201d <\/b>published in<\/span> The Hindu <\/b>on 31st January 2023.<\/b><\/p>\n

What is the News?<\/b><\/h2>\n

The government <\/span>will soon kick off the process to set up the Sixteenth Finance Commission.<\/span><\/p>\n

What is the Finance Commission?<\/b><\/h2>\n

Click Here to read<\/b><\/a><\/p>\n

When was the last Finance Commission constituted?<\/b><\/h2>\n

The Fifteenth Finance Commission was set up in 2017 with a mandate to make recommendations for the five-year period from 2020-21.\u00a0<\/span><\/p>\n

While the Constitution requires a Finance Commission(FC) to be set up every five years, the 15th FC\u2019s mandate was extended by a year till 2025-26. This means the report covered a period of six years instead of five.<\/span><\/p>\n

Note:<\/b> The last time an FC was granted a six-year time frame was for the 9th Finance Commission, formed in June 1987.<\/span><\/em><\/p>\n

What will be the key challenges before the 16th Finance Commission?<\/b><\/h2>\n

Overlap with GST Council:<\/b> The key challenge for the 16th FC would be the co-existence of another permanent constitutional body, the GST Council.<\/span><\/p>\n

\u2013 This is because the GST Council\u2019s decisions on tax rate changes could alter the revenue calculations made by the Commission for sharing fiscal resources.<\/span><\/p>\n

Implementation of its recommendations:<\/b> Centre usually takes the Finance Commission\u2019s recommendations on States\u2019 share of tax devolution and the trajectory for fiscal targets into account and ignores most other suggestions.<\/span><\/p>\n

\u2013 For instance, the 15th FC has suggested creating a Fiscal Council where the Centre and States collectively work out India\u2019s macro-fiscal management challenges, but the government has signalled there is no need for it.<\/span><\/p>\n

\u2013 Moreover, the centre had accepted to set up a non-lapsable fund for internal security and defence \u2018in principle’. But its implementation still has to be worked out.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article \u201cProcess to set up Sixteenth Finance Commission set to kick off soon\u201d published in The Hindu on 31st January 2023. What is the News? The government will soon kick off the process to set up the Sixteenth Finance Commission. What is the Finance Commission? Click Here to… Continue reading Process to set up Sixteenth Finance Commission set to kick off soon<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10498],"class_list":["post-224318","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700811583,"cached_date":1704927289},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/224318","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=224318"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/224318\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=224318"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=224318"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=224318"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}