Page 6 - Finance Commission

Cabinet approves 'terms of reference' for 16th Finance Commission

Chairman, members to be appointed 'as soon as possible'; commission to submit report by Oct 31, 2025

Union cabinet approves terms of reference for 16th Finance Commission

The government has approved the terms of reference for the 16th Finance Commission, which decides on sharing of tax revenues between the Centre and States, Information and Broadcasting Minister Anurag Thakur said on Wednesday. The decision was taken on Tuesday evening at a Union Cabinet meeting. Thakur said the 16th Finance Commission will submit its report by October 2025 and the recommendations will be valid for a five-year period beginning April 2026. Set up under Article 280 of the Constitution, the core responsibility of Finance Commission is to evaluate the state of finances of the Union and State governments, recommend the sharing of taxes between them and lay down the principles determining the distribution of these taxes among States.

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

TMSEp562: Finance Commission, Big 5 in governance, Samvat 2080, Tata-Singur

What issues will the 16th Finance Commission face? What role does the Big 5 play in Indian governance? What events will shape the markets in Samvat 2080? What is Tata-Singur land case? Answers here

North-South divide at a crossroads

As the Finance Commission deliberates on the terms of reference, it is crucial that it acknowledges the existential threat facing India

Centre releases tax devolution to states early citing festive season

The lowest devolution for the month of November is to Goa and Sikkim at Rs 281 crore and Rs 283.10 crore

Finance Commission gets first officer; terms of reference expected soon

Subsidies to climate finance: What could be some key priorities for the 16th Finance Commission

16th Finance Commission's political challenge

There are fundamental issues to harmonious inter-governmental fiscal relations that the Centre must take into account when constituting the Commission

Finance Commission expected to be constituted by November end: Finance secy

The government is expected to constitute the 16th Finance Commission by end of November, finance secretary T V Somanathan said. Finance Commission is a constitutional body that gives suggestions on Centre-state financial relations. It suggests, among other things, the ratio in which tax is to be divided between the Centre and states for five years, beginning April 1, 2026. "The Finance Commission is expected to be constituted by end of November because that's the statutory requirement," he told PTI in an interview. Terms of Reference (ToR) for the commission is being finalised, he said. The previous Finance Commission submitted its report on November 9, 2020, for the 5 fiscals -- 2021-22 to 2025-26 -- to the President. The 15th Commission under N K Singh had kept the tax devolution ratio at 42 per cent -- at the same level suggested by the 14th Commission. The central government accepted the report of the commission, and accordingly, the states are being given 42 per cent of the

Should states cough up higher interest rates for their fiscal profligacy?

Debate over how states manage their finances likely to pick up as the constitution of the 16th Finance Commission is round the corner

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

Bring government closer to people

To make India an advanced economy by 2047, devolving more power to local governments is crucial, and the 16th Finance Commission can play a pivotal role in this regard

Govt to set up 16th Finance Comm in 2023 for Centre-state tax devolution

The government is likely to set up the 16th finance commission this year to suggest, among other things, the ratio in which tax is to be divided between the Centre and states for five years, beginning April 1, 2026, an official said. The members of the commission and its Terms of Reference (ToR) are being worked out, the official added. Finance Commission is a constitutional body that gives suggestions on Centre-state financial relations. The previous Finance Commission submitted its report on November 9, 2020, for the 5 fiscals -- 2021-22 to 2025-26 -- to the President. The 15th Commission under NK Singh had kept the tax devolution ratio at 42 per cent -- at the same level suggested by the 14th Commission. The central government accepted the report of the commission, and accordingly, the states are being given 42 per cent of the divisible tax pool of the Centre during the period 2021-22 to 2025-26. The 15th finance commission's recommendations include the fiscal deficit, debt pa

TMS Ep406: RBI rate pause, food labelling, markets, Finance Commission

How will the economy fare as RBI pauses rate hikes? Why has food labelling become controversial? RBI policy done, what next for the markets? What is the Finance Commission? Answers here

Poonawalla Fincorp registers highest disbursement of Rs 6,370 cr in Q4 FY23

Adar Poonawalla-controlled non-banking finance company Poonawalla Fincorp on Wednesday said its total disbursement grew 151 per cent year-on-year to record Rs 6,370 crore in the March 2023 quarter. Its assets under management (AUM) increased by 37 per cent year-on-year and 16 per cent quarter-on-quarter to about Rs 16,120 crore at March-end 2023, despite a sharp reduction in the discontinued loan book, the company said in a regulatory filing. Discontinued onbook reduced to approximately Rs 625 crore at March-end 2023. "Total disbursements during Q4 FY23 were highest ever at approximately Rs 6,370 crore, up 151 per cent Y-o-Y and 89 per cent Q-o-Q compared to disbursements of Rs 2,539 crore in Q4FY22 and Rs 3,369 crore in Q3FY23," it said. Gross NPA and net NPA are expected to improve further to less than 1.55 per cent and 0.85 per cent, respectively, at the end of the last fiscal. The company said it would strive to maintain the NNPA below 1 per cent in line with its Management Vi

Finance Ministry to constitute 16th Finance Commission this year

The Finance Ministry in its FY24 Budget has allocated a token Rs 10 crore for establishing attached offices for the 16th Finance Commission

BS BFSI Insight Summit 2022: Fireside chat with RBI Guv Shaktikanta Das

Das as the RBI Governor is widely credited with having spearheaded RBI's proactive approach in handling the economic impact of the Covid-19 pandemic with 'whatever it takes' approach

The state of states: Have they really been fiscally profligate?

A couple of states may be guilty of fiscal imprudence. But why tar all of them with the same brush?

Fiscal correction: Focus should be on reducing the fiscal deficit

The govt would do well to be cautious and resist the temptation of increasing expenditure in the run-up to the Lok Sabha elections because the economy is likely to slow in the second half of the year

Supreme Court rejects plea by Hero MotoCorp for full budgetary support

But suggests GST Council, states consider mechanism for reimbursing eligible units