The Finance Commission is a constitutional body formed by the President of India to give suggestions on centre-state financial relations. The 15th Finance Commission (Chairman: Mr. N. K. Singh) submitted final report with recommendations for the 2021-26 period was tabled in Parliament on February 1, 2021. Key recommendations in the report for 2021-26 include:
Share of states in central taxes
The share of states in the central taxes for the 2021-26 period is recommended to be 41%. This is less than the 42% share recommended by the 14th Finance Commission for 2015-20 period. The adjustment of 1% is to provide for the newly formed union territories of Jammu and Kashmir, and Ladakh from the resources of the centre.
Criteria for devolution to state
The Finance Commission uses certain criteria when deciding the devolution to states. The 15th Finance Commission used the following criteria while determining the share of states:
About Finance Commission of India(FCI)
Established : 1951
Govt Body Type : Constitutional Body
The Government of India, with the approval President of India, ha constitutes Finance Commission in pursuance of article 280 of the Constitution, read with the provisions of the Finance Commission Act, 1951
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