14th Finance Commission
Chairman -Y V Reddy
Members-
Abhijit Sen, Member,
Planning Commission;
Sushama Nath,
Former Union Finance Secretary;
M Govinda Rao,
former Director of National Institute of Public Finance and Policy;
Sudipto Mundle,
former Acting Chairman, National Statistical Commission; and
AN Jha,
Secretary to the Commission.
Key Recommendations:
·
The increase in share of states in the centre's
tax revenue from the current 32 per cent to 42 per cent
·
Union government to keep its fiscal deficit at a
recommended level of 3.6 per cent next financial year and, subsequently, to
three per cent in each of the four following years
·
Replace existing FRBM Act with a debt ceiling
& fiscal responsibility law
·
Wind up National Investment Fund and maintain
all disinvestment receipts in the consolidated fund
·
Amend electricity Act to provide for penalties
for delay in payment of subsidies by state
·
Steps for states to augment revenues, such as
property tax reforms and issuance of municipal bonds suggested
·
Set up autonomous and independent GST
compensation fund
·
performance-based grants to panchayats and local
bodies
Notes:
The commission wanted the Centre to de-link about 30
centrally-sponsored schemes from the support of the Union government. However,
the finance ministry said only eight such schemes could be de-linked.