Meeting for the first time after its constitution last week, the 15th Finance Commission on Monday decided to involve various research organisations across the country.
The panel will decide on devolution share of states from central taxes
It will suggest measures to improve the Consolidated Fund of a State to supplement the resources of the Panchayats and Municipalities.
The panel has been asked to take into account the impact of the GST, including payment of compensation for possible loss of revenues for 5 years, and abolition of a number of cesses.
Chairman of 15th Finance commission- N.K Singh
Objective: The FC is formed every five years to recommend principles governing the allocation of tax revenue between the Centre, states and local bodies.
Other members of the Commission are former economic affairs secretary Shaktikanta Das, former chief economic adviser Ashok Lahiri, Niti Aayog member Ramesh Chand and Georgetown University Adjunct Professor Anoop Singh.
The recommendations of the 15th FC will have to come into effect from April 1, 2020. In the Budget 2017-18, the government had allocated Rs 10 crore for setting up of the 15th FC.
Finance Commission is a body set up under Article 280(1) of the Constitution
The recommendations of the previous 14th Finance Commission, chaired by former Reserve Bank of India (RBI) Governor Y V Reddy, are valid from 2015 to 2020. The recommendations of the 15th Finance Commission will be implemented for the period starting 1 April 2020 to 31 March 2025.
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