Key Points
The Union Cabinet likely greenlit certain terms of the 16th Finance Commission in a meeting held on Tuesday..
While there hasn't been an official announcement yet, this move is a crucial step in shaping Centre-state financial relations.. Finance Secretary T V Somanathan, in an interview with PTI, had earlier stated that the government aims to constitute the 16th Finance Commission by the end of November, adhering to statutory requirements..
The Terms of Reference (ToR) for the commission are in the finalization stage...
The 15th finance commission's recommendations included the fiscal deficit, debt path for the Union and states, and additional borrowing room to states based on performance in power sector reforms. Finance Commission is a constitutional body that gives suggestions on Centre-state financial relations..
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Government to set up 16th Finance Comm in 2023 to suggest Centre-state tax devolution beginning FY27
09, Apr, 23The Indian government is expected to set up the 16th Finance Commission soon to propose suggestions on Centre-state financial relations, including how tax should be divided between them for the next five years starting from April 1, 2026. A constitutional body, the finance commission gives suggestions on Centre-state financial relations. The Terms of Reference (ToR) and the commission's members are currently being worked out by the government. The previous commission had proposed setting the tax devolution ratio at 42 per cent, which was accepted, and the current commission's mandate will include fiscal deficit, debt path, and additional borrowing capacity for states.
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30, Nov, 23India Business News: The Union cabinet has recommended setting up of the 16th Finance Commission to decide on sharing of taxes between the Centre and the states, setting o
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