N K Singh, chairman of the 15th Finance Commission, on Monday flagged the absence of independent fiscal institutions and lack of flexibility for states to deviate from the fiscal consolidation roadmap in times of emergency.
“There is a lack of fiscal institutions in India, it be by your fiscal Council, or by any other institution. While the country has some kind of a fiscal architecture, it does not have independent fiscal institutions,” said Singh during a webinar on India’s Overall Fiscal Architecture, organised by the Centre for Social & Economic Progress.
Then, there is this asymmetry of power between the Centre and the states over fiscal flexibility.
Below the line
NK Singh’s sixer
You must give it to Fifteenth Finance Commission Chairperson NK Singh for his wit and his knack to come up with right analogy.
When
BusinessLine recently quizzed him on some of his recommendations not being accepted and acted upon swiftly by the Centre, Singh quipped.
“I have no great doubts that these will go through (Centre’s approval) as we go along.
“Unlike a Budget, we are not a one day match or much less a T20 match. We are a regular 5-day match and we (as Finance Commission) give five-year awards and therefore we need to see how the fiscal situation begins to play itself out”.
Updated Mar 06, 2021 | 17:45 IST
Rajya Sabha MP Sushil Kumar Modi highlighted that the share of divisible pool is slowly shrinking as the cess and surcharge component in Gross Tax revenue is increasing 15th Fin Comm opted for continuity, predictability in deciding tax devolution to states: NK Singh | Photo Credit: BCCL
New Delhi: The 15th Finance Commission opted for continuity and predictability and hence retained the share of tax devolution to states at 41 per cent of the total pool, its chairman NK Singh said on Saturday.
Speaking at a webinar organised by the Centre for Policy Research (CPR), Singh said each Finance Commission in the past has somewhat increased the total amount of devolution to states, but the 15th Finance Commission weighed all the options considering that the fiscal space of both states and the Centre has shrunk on account of the COVID-19 pandemic.
15th Finance Commission opted for continuity, predictability in deciding tax devolution to states, says NK Singh
Speaking at a webinar organised by the Centre for Policy Research (CPR), Singh said each Finance Commission in the past has somewhat increased the total amount of devolution to states
PTI | March 6, 2021 | Updated 17:42 IST
The 15th Finance Commission Chairman NK Singh
The 15th Finance Commission opted for continuity and predictability and hence retained the share of tax devolution to states at 41 per cent of the total pool, its chairman N K Singh said on Saturday. Speaking at a webinar organised by the Centre for Policy Research (CPR), Singh said each Finance Commission in the past has somewhat increased the total amount of devolution to states, but the 15th Finance Commission weighed all the options considering that the fiscal space of both states and the Centre has shrunk on account of the COVID-19 pandemic.
15th Finance Commission opted for continuity, predictability in deciding tax devolution to states: N K Singh
Synopsis
The 15th Finance Commission has recommended that states be given 41 per cent of the divisible tax pool of the Centre during the period 2021-22 to 2025-26, which is at the same level as was recommended by the 14th Finance Commission.
Agencies
N K Singh
The 15th Finance Commission opted for continuity and predictability and hence retained the share of tax devolution to states at 41 per cent of the total pool, its chairman N K Singh said on Saturday. Speaking at a webinar organised by the Centre for Policy Research (CPR), Singh said each Finance Commission in the past has somewhat increased the total amount of devolution to states, but the 15th Finance Commission weighed all the options considering that the fiscal space of both states and the Centre has shrunk on account of the COVID-19 pandemic.