15th FC REPORT SUBMITTED

Subject : Polity

Context : The Fifteenth Finance Commission (XVFC) led by Chairman N K Singh, submitted its Report for the period 2021-22 to 2025-26 to the President of India.

Concept :

• As per the terms of reference (ToR), the Commission was mandated to give its recommendations for five years from 2021-22 to 2025-26 by 30 October, 2020.
• Last year, the Commission had submitted its report containing recommendations for the year 2020-21 which was accepted by the Union Government and tabled in the Parliament on 30 January 2020.
• The Report will be available in the public domain once it is tabled in the Parliament by the Union Government.

Terms of reference (ToR):

• The Commission was asked to give its recommendations on many unique and wide-ranging issues in its terms of reference.
• Apart from the vertical and horizontal tax devolution, local government grants, disaster management grant, the Commission was also asked to examine and recommend performance incentives for States in many areas like power sector, adoption of DBT, solid waste management etc.
• The Commission was also asked to examine whether a separate mechanism for funding of defence and internal security ought to be set up and if so how such a mechanism could be operationalised.