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Fiscal Transfers in Pandemic Times

The Fifteenth Finance Commission has trodden carefully in dealing with the controversial terms of reference issued to it in the presidential order. The commission had the challenging task of dividing fiscal resources between the union and the states due to the serious uncertainty posed by the pandemic. In many ways, the recommendations of the commission marks continuity. ....

Fifteenth Finance Commission , Commission In Covid Times , பதினைந்தாவது நிதி தரகு ,

Finance Commission keeps tax devolution for states at 41% in FY22

The 15th finance commission has kept the transfer to states from the divisible tax pool to 41 per cent for 2021-22 to 2025-26. This is the same level as was recommended in its interim report for the current financial year and the previous finance commission report, if reorganisation of Jammu and Kashmir is taken into account.
It is at the same level of 42 per cent of the divisible pool as recommended by the 14th Finance Commission, the Commission said, adding that however, a required adjustment has been made of about 1 per cent due to the changed status of the erstwhile state of Jammu and Kashmir into the new Union Territories of Ladakh and Jammu and Kashmir . ....

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