15th Finance Commission Current Affairs - 2019
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Union Cabinet chaired by Prime Minister Narendra Modi has approved extension of term of 15th Finance Commission (XV-FC) up to 30 November 2019. This will enable FC to examine various comparable estimates for financial projections in view of reforms as well as new realities to finalise its recommendations for period 2020-2025.
The government has also broadened ambit of FC’s recommendation to include funds for defence and internal security.
Background: 15th Finance Commission has been constituted by President on 27 November 2017 in pursuance of clause (1) of Article 280 of Constitution of India and Finance Commission (Miscellaneous Provisions) Act, 1951. FC was to submit its Report on basis of its Terms of Reference (ToR) by 30 October 2019, covering a period of 5 years commencing from 1 April 2020.
Reason for Extension:
The constitution of 15th FC has been in backdrop of various major fiscal and budgetary reforms introduced by Union Government in past 4 years such as closure of Planning Commission (PC) and its replacement by NITl Aayog (National Institution for Transforming India), removal of distinction between Non-Plan and Plan expenditure, advancing budget calendar by 1 month and passing of full budget before commencement of new financial year i.e. on 1 February, introduction of Goods and Services Tax (GST) from July 2017 and New Fiscal Responsibility and Budget Management (FRBM) architecture with debt and fiscal deficit path.
ToR of FC takes into account above fiscal and budgetary reforms. The task of determining expenditure and receipts of Union and State governments based on which FC shall make its recommendations is time consuming, as checks for data consistency across time and data sets become challenging.
About Finance Commission
FC is constituted by President under Article 280 of Constitution of India. It is constituted to give recommendations on distribution of tax revenues between Union and the States and amongst States themselves.
It was constituted by Presidential Order on November 2017 under the Chairmanship of N. K. Singh.
It will decide formula for devolution of revenue/funds between Centre and States, for a 5 year period– April 2020 to March 2025.
Tags: 15th Finance Commission • Article 280 • Finance Commission • N K Singh • Terms of Reference
The Fifteenth Finance Commission has constituted high level group to explore and give recommendations for a balanced expansion of the health sector. It will be headed by Dr. RandeepGuleria, Director, AIIMS, New Delhi and shall consist of eminent experts in health sector from across the country.
Functions of High Level Group
It will evaluate existing regulatory framework in health sector and examine its strength and weaknesses for enabling balanced and faster expansion keeping in view India’s demographic profile. It will suggest ways and means to optimize use of existing financial resources and to incentivize state governments’ effort on fulfilment of well-defined health parameters in India. It will also holistically examine best international practices for health sector and seek benchmark frameworks to these practices for optimizing benefits keeping in mind local issues.