Thursday, January 10, 2013

GOVT SETS UP 14th FINANCE COMMISSION



  • The government has constituted the 14th Finance Commission under the chairmanship of former RBI governor Y V Reddy, which among other things, will suggest steps for pricing of public utilities like electricity and water in an independent manner.
  • Besides, it would suggest the level of subsidies that would be essential for sustainable and inclusive growth and sharing of burden between the Centre and states.
  • Among other things, the Commission has also been asked to review the non-salary expenditure of states and recommend steps for upkeep of capital asset.
OTHER MEMBERS:

  • Former finance secretary Sushma Nath, NIPFP director M Govinda Rao, Planning Commission member Abhijit Sen and former acting chairman of National Statistical Commission Sudipto Mundle
 FINANCE COMMISSION:

  • Finance Commission is set up every five years to suggest principles governing the distribution of tax proceeds among Centre, States and local bodies.
  • The recommendations of the Commission, set up under the provisions of the Constitution on sharing of tax proceeds between the Union and States, will apply for the period beginning April 1, 2015.

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