Thirteenth Finance Commission
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The Thirteenth Finance Commission of India was constituted by the [[President of India ]] under the chairmanship of Vijay L. Kelkar on 13 November 2007.[1]
Members[]
Members of the Commission were:[2]
- Dr. Vijay L. Kelkar, Chairman
- Shri , Part-time
- Dr.
- Prof.
- Dr.
- Shri , Secretary
Recommendations[]
The major recommendations of the Commission were:
- The share of states in the net proceeds of the shareable Central taxes should be 32%. This is 1.5 percentage-points higher than the recommendation of the 12th Commission.
- to be progressively reduced and eliminated, followed by revenue surplus by 2013–2014.
- Fiscal deficit to be reduced to 3% of the gross domestic product (GDP) by 2014–2015.
- A target of 68% of GDP for the combined debt of centre and states.
- The (MTFP) should be reformed and made the statement of commitment rather than a statement of intent.
- Fiscal Responsibility and Budget Management Act, 2003 need to be amended to mention the nature of shocks which shall require targets relaxation.
- Both centre and states should conclude 'Grand Bargain' to implement the model Goods and Services Act (GST).(Task force recommended single positive GST rate of 12% comprising 5% CGST and 7% SGST ) To incentivise the states, the commission recommended a sanction of the grant of Rs500 billion.
- Initiatives to reduce the number of Central Sponsored Schemes (CSS) and to restore the predominance of formula-based plan grants.
- States need to address the problem of losses in the power sector in time bound manner.
References[]
- ^ "S.O. 1937(E)". The Gazette of India, Extraordinary. Part II Sec 3 (ii): 4. 14 November 2007.
- ^ "Thirteenth Finance Commission". Fourteenth Finance Commission. Retrieved 22 July 2017.
Further References[]
- Sansar Singh Janjua (1999). Centre State Financial Relations in India and Finance Commission. New Delhi, India: Anmol Publications. ISBN 8126102233.
- "Finance Commission India". New Delhi, India: Fourteenth Finance Commission. Retrieved 22 July 2017.
Categories:
- Finance Commission of India