15th Finance Commission

Funds devolved to states under 15th Finance Commission higher: FM

Funds devolved to states under the 15th Finance Commission (2021-2024) is more than what was devolved under the 14th Finance Commission (2015-20), finance minister Nirmala Sitharaman said on Friday. In a pre-budget meeting with states, Sitharaman remarked that because of healthy macroeconomic environment, buoyancy and efficiency in the tax collections, the devolution has increased. "The funds devolved to the states in the last 45 months (April 2021 to December 2024) under the 15th Finance Commission is more than what was devolved in 60 months under the 14th Finance Commission (2015-20)," an official statement quoting Sitharaman said. The Union finance minister also referred to the Scheme for Special Assistance to States for Capital Investment (SASCI), which was first announced in the Union Budget 2020-21, and acknowledged that it has received a very good response from states. States have been requesting the Central government to enhance the outlay under the scheme as it is leading

Centre releases 15th Finance Commission grant for rural bodies in Karnataka

The Centre has released the first instalment of the 15th Finance Commission grants for FY 2024-25 to the rural local bodies (RLBs) in Karnataka, the Union Panchayati Raj Ministry said in a statement. The funds are meant for all the 5,949 eligible gram panchayats in the state, it added. "The Government of India through the Ministry of Panchayati Raj and Ministry of Jal Shakti recommends the release of XV-FC grants to the Rural Local Bodies which are then released by the Ministry of Finance. The allocated grants are recommended and released in two installments in a financial year," the statement said. The grants will be utilised by the RLBs for location-specific requirements under the 29 subjects enshrined in the 11th Schedule of the Constitution, except for salaries and other establishment costs, it added. The grants can be used for the basic services of (a) sanitation and maintenance of ODF status, and this should include management and treatment of household waste, and human excre

With a letter to CMs, Siddaramaiah reignites debate on tax devolution

The Karnataka chief minister has invited states to a conclave in Bengaluru to discuss the challenges of fiscal federalism, particularly ahead of upcoming recommendations from the Finance Commission

Centre denies Bihar's 'special category' status; no new designation allowed

The Centre said that no new states are being awarded 'special category' status at present, as the Indian Constitution does not accommodate such classification

'Humbling moment': Economist NK Singh receives LSE Honorary Fellowship

The awarding of an Honorary Fellowship acknowledges and celebrates those who have made an exceptional contribution to LSE and its global community

Cabinet approves creation of 3 officer-level posts for 16th Fin Comm

The Cabinet on Thursday approved the creation of three officer-level posts for assisting the 16th Finance Commission, chaired by Arvind Panagariya. The Union Cabinet chaired by Prime Minister Narendra Modi has approved the creation of three posts at the level of Joint Secretary i.e. two posts of Joint Secretary and one post of Economic Adviser, for the 16th Finance Commission, an official statement said. "The newly created posts are required to assist the Commission in carrying out its functions," the statement said. All other posts in the commission have already been created as per the delegated powers, it added. In a notification dated December 31, 2023, the government appointed former vice chairman of Niti Aayog Panagariya as the chairman of the 16th Finance Commission. Ritvik Ranjanam Pandey was named as the Secretary to the Commission. The Commission would submit its report to the President by October 31, 2025. The report would be for five years commencing April 1, 2026. Be

Govt may ask 16th Finance Commission to include HDI, SDG in formula

Article 280 of the Constitution says that the President of India can constitute a Finance Commission to make recommendations regarding the distribution of tax proceeds between the Centre and states

15th Finance Commission allocated Rs 1.28 trillion to SDRF: MoS Rai

15th Finance Commission has allocated a total corpus of Rs 1,28,122.40 crore to the State Disaster Response Force in all States for the Award Period, Nityanand Rai informed Lok Sabha

Multilateral banks not fit for purpose in 21st century: Singh & Summers

The two men have been tasked by G-20 (headed by India this year) to be in charge of an expert group to formulate a detailed plan for reforms in multilateral institutions

What's rendering state Finance Commissions so ineffective and toothless?

While the 13th Finance Commission gave a template for preparing the reports of SFCs, it was not acted upon because these are not mandatory recommendations

What's a freebie? Experts dissect basic definition amid SC hearings

'Strain on exchequer arising from sops to industry, bad loan waivers, etc., must be discussed'

Capex loan disbursement to states may rise to Rs 70,000 cr by Q2 end

This is lower than Finance Minister Nirmala Sitharaman's expectation Rs 1 trillion would be released by end of September

States' share in central taxes come down to 29-32% against recommended 41%

The previous five years saw the states' share, except for 2019-20, in between 34.5% and 37%, whereas the recommendation was to give them a 42% share

Govt looks to expand debt management cell as PDMA remains in backburner

A top govt official told Business Standard that internally, the plan for PDMA is unlikely to be revived

Rs 1.42-trillion tied grant to villages for water, sanitation: 15th FC

Tied grant 60% of total Rs 2.37 trn allocated to rural local bodies

N K Singh succeeds Manmohan as president of IEG

Singh has been the chairman of the Fiscal Responsibility and Budget Management review committee and also served as member of the Rajya Sabha (2008 -2014)

Best of BS Opinion: Job quotas, banking on slower recovery, and more

Here's a selection of Business Standard opinion pieces for the day

Banking on slower recovery

The Centre's current deficit glide path reveals a conservative stance on growth

15th Finance Commission chairman N K Singh rues lack of fiscal institutions

Says states don't have fiscal flexibility for exigencies as Centre has

Opted for predictability in deciding tax devolution to states: N K Singh

Rajya Sabha MP Sushil Kumar Modi highlighted that the share of divisible pool is slowly shrinking as the ''cess and surcharge'' component in Gross Tax revenue is increasing