- An 8-member committee is set up by Finance Commission (FC) to review the fiscal consolidation road map of state & central governments. The committee is headed by 15thFinance Commission Chairman N K Singh.
Key Points:
- By considering all of India’s explicit and measurable debt, it will make recommendations on the definition of deficit & debt for central government, overall states, general government and public sector enterprises (government levels) by bringing consistency between the definition of debt(stock) and deficit(flow)
About FC:
- In 1951, under the article 280 of the constitution it was established to assess the financial position of the Union and State Governments, recommend the sharing of taxes among them, and set out policies to determine the distribution of these taxes among the States.
- The FC (Miscellaneous Provisions)Act, 1951 defines the terms of qualification, appointment, disqualification, term, eligibility & powers of FC.
- The 15thFC was constituted on 27 November 2017 against the abolition of the Planning Commission (the difference between plan and non-plan expenditure) & the introduction of Goods and Services Tax (GST).
