14th Finance Panel report to be tabled in Budget session

The government might keep tradition alive by not tabling the 14th Finance Commission’s report in the winter session of Parliament.

The  report, unlike  what was  speculated  in certain quarters, would be presented  in the Budget session, as it had various ramifications on the government’s taxation and expenditure plans, sources said.

The recommendations of the commission, headed by former RBI governor Y V Reddy, relate to the period between April 1, 2015, and March 31, 2020.

There were speculations that the government might break tradition and table the report in the session that concluded on Tuesday.

The 14th Finance Commission, which was also asked to look into the compensation to states after a goods and services tax (GST) is rolled out, submitted its report  to President Pranab  Mukherjee on December 15.

Usually, the commission’s reports are submitted in the Budget session, even if those are presented  earlier.

For  instance, the 12th Finance Commission,  headed by former RBI Governor C Rangarajan, submitted its  report in November 2004, but it was tabled in the Budget session in February 2005.

Similarly, the 13th Finance  Commission, chaired by former Finance Secretary Vijay Kelkar, submitted  its report to the President in December, 2009, but it was tabled in  February, 2010.  

The 12th Finance Commission had recommended an increase in the share  of  states to 30.5 per cent  of divisible  tax  proceeds from  29.5  per cent. This was further raised by the 13th Finance Commission to 32 per cent.