Fifteenth Finance Commission Report: Key Highlights
The Fifteenth Finance Commission headed by N K Singh is to submit its report the President of India.
Key Recommendations
The recommendations made by the commission are as follows
- The Commission has recommended that the states shall get 41% of central tax revenues. Earlier, the fourteenth Finance Commission had recommended 42%.
- 4.3 lakh crores for the local governments
- Rs 1 lakh grant to health care
- Rs 2.9 lakh crores of revenue deficit grants to 17 states.
- The commission have recommended the states to keep aside at least 8% of their budget for building health care capacities.
Moderninsation of Defence and Internal Security Fund
The Finance Commission had recommended to set up Modernisation of Defence and Internal Security Fund. The fund is to be called Rashtriya Suraksha Naivedya Kosh. The fund is to add up to Rs 2.4 lakh crores by 2021-26. Of this, Rs 1.5 lakh crore is to be directly transferred to Consolidated Fund of India.
The fund is to be used for capital investment for defence, state police forces and paramilitary forces. The Defence Ministry will have exclusive rights over the funds.
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Month: Current Affairs - November, 2020