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Working relationship between GST Council, Finance Commission needs closer look: N.K. Singh

IANS  |  Chennai 

The working relationship between the and the Commission needs a closer look, said of the 15th Commission N.K. Singh here on Monday.

Delivering the Fifth G. Ramachandran Memorial Lecture, Singh said the working of is still in its nascent stage.

Pointing out that the Commissions recommend the devolution of revenue, he posed but how are they to ensure that the revenues available to them are optimised?

Singh said GST tax rates, their exemptions, their changes, their application and implementation are entirely within the domain of the

"Who is to monitor, scrutinise and evaluate the best outcomes? Since both are constitutional bodies, a working relationship between the GST Council and the deserves closer consideration," he said.

Singh said the 15th Finance Commission has been appointed when there have been other significant changes in India's fiscal framework.

"The which had overarching power on overseeing and monitoring development of states was abolished. It has been replaced by whose functions are not connected with the financial devolution," he said.

"The distinction between plan and non-plan expenditure has also been removed from the Union budget. So transitional arrangements are still under evolution."

Reflecting on the institutional mechanism for a federal polity, Singh said the needs to be restructured and rejuvenated. It must emerge as the key institution to manage inter-state frictions.

According to Singh, the should have regular meeting schedule and have a permanent active secretariat.

"Since is the of the and the Home Ministry's primary function is an internal security, the Inter State Council should function as part of the Prime Minister's Office," he said.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, December 03 2018. 23:58 IST