Key Points
The Union cabinet on Wednesday approved the Terms of Reference (TOR) for the sixteenth Finance Commission to recommend the tax distribution between the Union and the States of the net proceeds of taxes, on the measures needed to augment the resources of local bodies and to review the present arrangements on financing Disaster Management initiatives...
It suggests distribution of taxes and grants and works based on the terms of reference set by the finance ministry for a five-year period, after being approved by the centre...
"Normally the Finance Commission takes about two years to make their recommendations so it was important to approve the ToR," Information and Broadcasting minister Anurag Singh Thakur told reporters after the cabinet meeting...
The centre constituted advance cell of the 16th FC was formed on November 21 to oversee the formal constitution of the Commission and had appointed Ritwik Pandey, a 1998 batch IAS officer of the Karnataka cadre, as an officer on special duty at the advance cell of the Finance Commission...
After that a working group was set up headed by Finance Secretary and Secretary (Expenditure) and comprising Secretary, Economic Affairs, Secretary Revenue, Secretary Financial Services, Chief Economic Adviser, Adviser, NITI Aayog and Additional Secretary (Budget) to assist in formulation of the Terms of Reference (ToRs)...
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