The Fifteenth Finance Commission (FFC), tasked with drawing a blueprint for sharing central government’s tax revenue with states, submitted its first report to President Ram Nath Kovind on Thursday. The report submitted by members of the commission, led by chairman N K Singh, pertains to the year 2020-21, Kovind said in a tweet. The report is scheduled to be tabled in Parliament on Thursday.
FFC’s move to submit the first report solely for FY21 comes after the government last month extended its term by another year, apparently to rework its recommendations in view of the re-organisation of Jammu & Kashmir.
The full report, for which it has been given time till 30 October 2020, will recommend how much of central government’s divisible pool of tax revenue should be shared with states for the financial years starting FY22 till FY26. It will also suggest how to apportion the resources among states depending on their development needs.