{"id":84461,"date":"2021-02-23T10:28:21","date_gmt":"2021-02-23T04:58:21","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=84461"},"modified":"2021-02-23T12:07:09","modified_gmt":"2021-02-23T06:37:09","slug":"centres-decision-over-finance-commissions-recommendations","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/centres-decision-over-finance-commissions-recommendations\/","title":{"rendered":"Centre\u2019s decision over Finance Commission\u2019s recommendations"},"content":{"rendered":"<p><b>Synopsis<\/b><span style=\"font-weight: 400;\">: The <\/span><a href=\"https:\/\/forumias.com\/blog\/15th-finance-commission-report\/\"><b>15th Finance Commission<\/b><\/a><span style=\"font-weight: 400;\"> has submitted its recommendations for 2021-26 to the centre. Amongst which maximum have been accepted by the centre while others are put on a hold by it.\u00a0<\/span><\/p>\n<p><b>Background<\/b><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The commission headed by<\/span><b> N.K Singh <\/b><span style=\"font-weight: 400;\">was required to give recommendations for the period 2020-21 to 2024-25.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Although due to COVID 19, it was required to submit an interim report for a year 2020-21 and later give a road map for <\/span><b>2021-22 to 2025-2026.<\/b><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Further, the recommendations were to be given keeping in mind the multiple challenges. This included dissolution of the planning Commission, introduction of GST and above all the fiscal and revenue stress induced by the pandemic.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The commission gave the recommendations based on a judicious interpretation of the unusual terms of reference given to it. This has ensured that recommendations are based on the<\/span><b> principle of equity<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<p><b>Recommendations accepted by the Centre:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>41% of the Centre\u2019s taxes <\/b><span style=\"font-weight: 400;\">would be distributed amongst the states.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Revenue deficit grants <\/b><span style=\"font-weight: 400;\">amounting to 2.95 lakh crore would be given to 17 states in 5 years.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Grants towards urban and local bodies would be conditional upon:\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Setting up of a State finance commission<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Online publication of Local bodies accounts<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Sanitation and Water services provided by local bodies (60% weightage)<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Setting up of a <\/span><b>non-lapsable defence modernisation fund <\/b><span style=\"font-weight: 400;\">for augmenting capital expenditure on defence beyond the normal budgetary allocations.<\/span><\/li>\n<\/ul>\n<p><b>Recommendations put on hold<\/b><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Taking out 1.53 lakh crore rupees from the consolidated fund of India to partly finance defence modernization fund.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Sectors specific and other grants to states amounting to 1.8 lakh crore rupees.<\/span><\/li>\n<\/ul>\n<p><b>Way Forward:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Centre must take proactive steps to win the confidence of states, especially in the current stressful times.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The instances of introducing more cess and surcharges should be reduced as these are not shared with states, like the recent agricultural infrastructure development cess\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Centre needs to take states along with it to drive the country on a sustainable fiscal path and ensure equitable growth throughout the country.<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #ff0000; font-size: 14pt;\"><strong>\u00a0Read Also:-<\/strong><\/span><\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"bu86wWVGu5\"><p><a href=\"https:\/\/forumias.com\/blog\/issues-in-15th-finance-commission-recommendation\/\">Issues in 15th Finance Commission Recommendation<\/a><\/p><\/blockquote>\n<p><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Issues in 15th Finance Commission Recommendation&#8221; &#8212; Free UPSC IAS Preparation For Aspirants\" src=\"https:\/\/forumias.com\/blog\/issues-in-15th-finance-commission-recommendation\/embed\/#?secret=tarAuQDkKQ#?secret=bu86wWVGu5\" data-secret=\"bu86wWVGu5\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Synopsis: The 15th Finance Commission has submitted its recommendations for 2021-26 to the centre. Amongst which maximum have been accepted by the centre while others are put on a hold by it.\u00a0 Background: The commission headed by N.K Singh was required to give recommendations for the period 2020-21 to 2024-25.\u00a0 Although due to COVID 19,&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/centres-decision-over-finance-commissions-recommendations\/\">Continue reading <span class=\"screen-reader-text\">Centre\u2019s decision over Finance Commission\u2019s recommendations<\/span><\/a><\/p>\n","protected":false},"author":10322,"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":[1276],"class_list":["post-84461","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-po_5","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700791299,"cached_date":1701340906},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/84461","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\/10322"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=84461"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/84461\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=84461"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=84461"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=84461"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}