ToR 5 of the 15th Finance Commission states that “The Commission may also consider whether RD grants should be provided at all”. The manner of estimating and filling the gap has varied from Finance Commission to Finance Commission. Without this, the 15th Finance Commission cannot assess the flow of indirect tax revenue, a core task for the Finance Commission to prepare its recommendations. To conclude, some of the concerns flagged at the Thiruvananthapuram Conclave regarding the ToR of the 15th Finance Commission are unwarranted, while others are legitimate. Sudipto Mundle is emeritus professor at the National Institute of Public Finance and Policy and was a member of the Fourteenth Finance Commission.

Source: Mint April 20, 2018 02:26 UTC