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Fifteenth Finance Commission report
November 13 , 2020
1271 days
2106
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- It is headed by N K Singh.
- The 15th Finance Commission was required to submit two reports.
- The first report consisted recommendations for the financial year 2020-21.
- It has submitted its second report the President of India for the period of 2021/2026.
- It will be available in the public domain once it is tabled in the Parliament by the government along with an action taken report on its recommendations.
Key Recommendations
- The states shall get 41% of central tax revenues.
- 4.3 lakh crores for the local governments
- Rs 1 lakh grant to health care
- Rs 2.9 lakh crores of revenue deficit grants to 17 states.
- Earlier, the fourteenth Finance Commission had recommended 42%.
- The states are asked to keep aside at least 8% of their budget for building health care capacities.
- It recommended to set up Modernisation of Defence and Internal Security Fund.
- The fund is to add up to Rs 2.4 lakh crores by 2021-26.
- Of this, Rs 1.5 lakh crore is to be directly transferred to Consolidated Fund of India.
- The 15th Finance Commission used the following criteria while determining the share of states:
- 45% for the income distance,
- 15% for the population in 2011,
- 15% for the area,
- 10% for forest and ecology,
- 12.5% for demographic performance,
- 2.5% for tax effort.
- Uttar Pradesh and Bihar have received the largest devolutions for 2020-21.
- Karnataka and Kerala saw the largest decreases in the share.
- The Terms of Reference of the Finance Commission require it to recommend grants-in-aid to the States. These grants include
- revenue deficit grants
- grants to local bodies
- disaster management grants.
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