The Fifteenth Finance Commission has adapted well to swiftly shifting sands
A pair of balanced scales representing the Union of India and the States, the cover visual of the Fifteenth Finance Commission’s report for the period 2021-22 to 2025-26, seeks to highlight the Commission’s endeavour to maintain an equitable approach at a time when the Centre and States are facing unprecedented revenue stress and fiscal demands. The Centre has accepted much of the Commission’s broad recommendations, including giving States a 41% share of the divisible pool of taxes and revenue deficit grants of nearly ₹2.95-lakh crore for 17 States over the next five years. It has also acceded to the Commission’s suggestion to make grants towards urban and rural local bodies conditional upon States setting up their own finance commissions and publishing online the accounts of local bodies. And 60% of these grants will be further linked to these bodies’ providing sanitation and water services. Th
Agri infra cess for whom?
It must be used for farmers’ benefit
On the economic policy front, it was amply clear that unlike other crises, Covid-19 had a significant impact on demand and supply. India recognised the disruptive impact and had to charter its unique path amidst the dismal projections. As a result of the policy initiatives undertaken by the government, as per the Economic Survey, the country saw a V-shaped recovery.
In the backdrop of an unprecedented crisis, the year 2020-21 had been a challenging one on the fiscal front. The shortfall in revenue collection owing to the interruption in economic activity and the additional expenditure requirements to mitigate the fallout of the pandemic on the economy created immense pressure on the available limited fiscal resources.
All you wanted to know about Agriculture Infrastructure Development Cess
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The Budget for 2021-22 may have refrained from tinkering with your taxes, but it has proposed a new levy Agriculture Infrastructure Development Cess.
What is it?
Cess is a kind of special-purpose tax which is levied over and above basic tax rates. The purpose of the new AIDC is to raise funds to finance spending on developing agriculture infrastructure. Considering that not much private investment is forthcoming for agriculture, the Centre now seeks to raise a dedicated fund to meet these expenses.
In her Budget speech, the Finance Minister proposed AIDC on a small number of items from February 2. While applying this cess though, she has made sure that there will not be additional burden on consumers on most items.
N.K. Singh appreciates Centre says besides; ₹1.5 lakh crore over 5 years from the Consolidated Fund, monetisation of Defence land will also help generate resources, he says.
Agreed to 15th Finance Commission s suggestion on non-lapsable Defence Fund: Finance Minister
The 15th Finance Commission had recommended constitution of Modernisation Fund for Defence and Internal Security (MFDIS), a non-lapsable dedicated fund to bridge the gap between projected budgetary requirements and allocation for internal security and defence. February 13, 2021 / 12:02 PM IST
Finance Minister Nirmala Sitharaman said on February 13 that the government has agreed to the 15th Finance Commission’s recommendations for a non-lapsable defence fund, a move which could see states indirectly paying for a part of the country’s defence needs.
Defence and National Security are the centre’s responsibility as per the Seventh Schedule of the Constitution.