Union Government accepted 14th Finance Commission recommendations [ Current Affairs ]

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Union Government accepted 14th Finance Commission recommendations on 26 February in 2015. Dr. YV Reddy headed the 14th Finance Commission who is a former Reserve Bank of India (RBI) Governor which provides more power to the states for their development.

Recommendations of the 14th Finance Commission

  1. Primary aim at Recommendations of the 14th Finance Commission is Tax devolution and it should perform for transfer of resources to the states.
  2. Grants to States should be divided into two way such as Performance of the Gram Panchayats (ratio of 90:10) and Grant of the constituted municipal bodies(ratio of 80:20)
  3. 14th Finance Commission was formed to suggest recommendations for the period from 1 April 2015 to 31 March 2020.
  4. Total grant allocated of 287436 core rupees for a five-year period which include the 200292 crore rupees for panchayats and renaming amount will go to municipalities bodies.
  5. The 14th Finance Commission was constituted by the orders of President (recommendations to the President Pranab Mukherjee on 15 December 2014) on 2 January 2013 in accordance to the Article 280 of the Constitution of India.

- Published on: March 2, 2015