Finance panel on study trip abroad

While the federal structure in Canada is quite similar to that in India, the US is a loose union of states, where the states have more powers than the Indian states have, commission officials point out.

The China visit was to study the pattern of reverse devolution, where provinces have to raise resources and transfer them to the Centre.

A study of the international experience in federalism could also take the TFC to other nations having a federal structure like Argentina, Belgium, Brazil, the European Union, France, Germany, Italy, Russia, Scandinavia, Spain, Switzerland and the United Kingdom.

With the finance ministry refusing to increase the travel budget for foreign travel, the commission, in fact, had decided to cut internal travel to fund the foreign sojourn, said officials.

The TFC, chaired by C Rangarajan, marks a departure from the earlier FCs. For the first time, specific mention has been made of the issues of debt reduction and equitable growth in its terms of reference.

R Prasad, former Cabinet secretary and DK Srivastava of NIPFP are the other full-time members of the commission. Som Pal, member, Planning Commission, is a part-time member of the TFC and GC Srivastava is the member-secretary.

The TFC will also review the Fiscal Reform Facility introduced by the Central Government on the basis of the recommendations of the Eleventh Finance Commission, and suggest measures for effective achievement of its objectives.

The commission is scheduled to submit its report by July 31, 2004, covering a period of five years commencing April 1, 2005.

Study tour

The twelfth Finance Commission is slated to visit the United States, Canada, China and Australia to study fiscal federalism

With the finance ministry refusing to increase the travel budget, the commission had cut down on internal travel to fund the foreign tour

The commission might also visit other countries like Argentina, Brazil, EU, France, Germany, Italy, Russia, and the UK