The government has cleared setting up of 14th Finance Commission, a senior minister said after meeting of the Cabinet here.
Former Reserve Bank Governor Y V Reddy is tipped to be the chairman of the Finance Commission, a Constitutional body which is set up every five years.
Besides other things, the Commission lays down principles governing the grants-in-aid to states and other local bodies for five-year period beginning April 1, 2015.
The 13th Finance Commission was headed by former Finance Secretary Vijay Kelkar.
