Former Reserve Bank of India (RBI) Governor Y.V. Reddy will be the chairman of 14th Finance Commission.
Former Finance Secretary Sushma Nath, National Institute for Public Finance and Policy Director M. Govinda Rao and former Acting Chairman of National Statistical Commission Dr. Sudipto Mundle will be the members of the 14th Finance Commission.
Planning Commission member Prof Abhijit Sen will be the part-time member.
Ajay Narayan Jha shall be the Secretary to the Commission. The Commission shall make its report available by October 31, 2014, covering a period of five years commencing on April 1, 2015.
The Commission shall make recommendations regarding the sharing of Union taxes, principles governing Grants-in-aid to states and transfer of resources to local bodies.
The Commission shall review the state of the finances, deficit and debt levels of the Union and the States, keeping in view, in particular, the fiscal consolidation roadmap recommended by the thirteenth Finance Commission, and suggest measures for maintaining a stable and sustainable fiscal environment consistent with equitable growth including suggestions to amend the Fiscal Responsibility Budget Management Acts currently in force. And while doing so, the Commission may consider the effect of the receipts and expenditure in the form of grants for creation of capital assets on the deficits; and the Commission shall also consider and recommend incentives and disincentives for States for observing the obligations laid down in the Fiscal Responsibility Budget Management Acts.
In making its recommendations on various matters, the Commission shall generally take the base of population figures as of 1971 in all cases where population is a factor for determination of devolution of taxes and duties and grants-in-aid; however, the Commission may also take into account the demographic changes that have taken place subsequent to 1971.
The Commission may review the present Public Expenditure Management systems in place including the budgeting and accounting standards and practices; the existing system of classification of receipts and expenditure; linking outlays to outputs and outcomes; best practices within the country and internationally, and make appropriate recommendations thereon.
The Commission may review the present arrangements as regards financing of Disaster Management with reference to the funds constituted under the Disaster Management Act, 2005 (53 of 2005), and make appropriate recommendations thereon.
The Commission shall indicate the basis on which it has arrived at its findings and make available the State-wise estimates of receipts and expenditure. (ANI)