Union Cabinet to set up 15th Finance Commission
The Union Cabinet has recently approved the setting up of the 15th Finance Commission which will assess the tax resources of the nation and suggest a formula for their devolution among states. Its recommendations will have to be in place before April 1, 2020 and will takes 2 years for Finance Commission to give its recommendations. As per Article 280 of the Constitution, the Commission is required to make recommendations on the distribution of the net proceeds of taxes between the Centre and the states. The Commission also suggests the principles which should govern the grants in aid of the revenues of the states out of the Consolidated Fund of India. The 14th Finance Commission was set up on January 2, 2013. Its recommendations cover the period from April 1, 2015 to March 31, 2020.