Finance Commission Submitted the Report to the President

 The 15th Finance Commission submits the report for 2021-22 to 2025-26 to the President. The Finance Commission was supposed to provide its recommendations on many particular, unique and wide-ranging issues in its terms of reference.

Highlights:

♦ Except for the vertical and horizontal tax devolution, disaster management grant, local government grants, the Commission was also supposed to evaluate, examine and recommend performance incentives for States in many areas like the power sector, adoption of DBT, solid waste management, etc.

♦ The Finance Commission also needed to examine whether a separate mechanism for funding of defence and internal security ought to be set up and if so how such a mechanism could be operationalised.

♦ The submitted report has been categorised in 4 volumes. 

♦ Volume 1 and 2, as in the past, contain the main report and the accompanying annexes.

♦ Volume 3 is devoted to the Union Government and examines key departments in greater depth, with the medium-term challenges and the roadmap ahead.

♦ Volume 4 is entirely about the States. The Commission has observed the finances of each and every State in great depth and has come up with State-specific considerations to check the key challenges that individual States face.

♦ The Report will be seen in the public domain once it is tabled in the Parliament by the Union Government along with explanatory memorandum/action taken report on the recommendations contained in the Report.