15th Finance Commission to monitor COVID-19 before second report
On March 19, 2020, the Finance Commission announced that it will monitor situation of COVID-19 before releasing its second report.
The Commission is to set up a committee to review fiscal consolidation of the government. The commission has recommended grants for health sector under its report. It has recommended setting up of State Disaster Risk Management Fund and National Disaster Risk Management Fund. This will replace the existing Disaster Relief Funds both at centre and state level. This is being done to give larger priority to disaster management, mitigation, relief and response.
The Finance Commission was set by President of India in 1951 under Article 280. The commission makes recommendation to distribute taxes between centre and state. It is an autonomous body. The main aim of the finance commission is to address the vertical and horizontal imbalances between the centre and the states.
The Finance Commission (Miscellaneous) Act, 1951 defines qualification, disqualification, eligibility, terms and powers of Finance Commission.
Category: Economy & Banking Current Affairs