15th Finance Commission may propose performance-based incentives for states

No changes in terms of reference in spite of opposition by states

The Fifteenth Finance Commission is likely to propose bringing back performance-based incentives for states, according to sources.

States will be assessed on certain parameters, including how well they implement the Centre’s flagship schemes, efforts made by them in deepening the goods and service taxes (GST), progress made through direct benefit transfers and their work in promoting the ease of doing business. States have been opposing some of these parameters.

Performance-based incentives were recommended by the 13th Finance Commission, but omitted by the 14th Finance Commission.

In spite of pressure by state governments to amend some of these terms of