Tax revenue to States to be kept at 41% for 5 years
February 01, 2021
Greater focus on grants-in-aid; ₹2.38-lakh crore for Defence modernisation
To maintain the predictability and stability of resources, especially during the current pandemic times, the Fifteenth Finance Commission (FFC), headed by NK Singh has recommended that the vertical devolution be retained at 41 per cent for the next five years (2021-26) the same level as in its report for 2020-21.
It has placed greater emphasis on augmenting resources of States through grants-in-aid, particularly Revenue Deficit grants (recommended ₹2.95 lakh crore to 17 states over 2021-26).
This latest recommendation on vertical devolution which forms part of the report (submitted to President in November last year) tabled in Parliament on Monday is at the same level of 42 per cent of the divisible pool as recommended by the fourteenth finance commission. However, the latest report has made the required adjustment of about 1 p
15th Finance Commission recommends maintaining vertical devolution at 41 pc ANI | Updated: Feb 01, 2021 21:08 IST
New Delhi [India], February 1 (ANI): In order to maintain predictability and stability of resources, especially during the pandemic, the report of 15th Finance Commission (FC) on Monday recommended maintaining the vertical devolution at 41 per cent, the same as in its report for 2020-21.
The 15th FC s report, with 117 core recommendations, was tabled in Parliament on Monday.
According to an official release of Finance Ministry, the vertical devolution is at the same level of 42 per cent of the divisible pool as recommended by 14th FC. However, it has made the required adjustment 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.
Updated Feb 01, 2021 | 15:31 IST
In XVFC’s assessment, gross tax revenues for 5-year period is expected to be Rs 135.2 lk cr. Out of that, Divisible pool (after deducting cesses, surcharges & cost of collection) is estimated to be Rs 103 lk cr Finance Commission keeps tax devolution to states at 42%; fiscal deficit should be 6% in 2021-22
New Delhi: Aside from presenting Union Budget 2021-22, Finance Minister Nirmala Sitharaman today also tabled the 15th Finance Commission (XVFC) report in Lok Sabha. The Fifteenth Finance Commission s ToR was unique and wide-ranging in many ways. The Commission was asked to recommend performance incentives for States in many areas like power sector, adoption of DBT, solid waste management etc.