New Delhi, Mar 3 : The Finance Commission will hold a consultation meeting with the Finance Ministers of all States on March 13 and determine priority of the state-specific grant proposals among others. This is to discuss issues related to the final report of the Finance Commission for 2021-26 which the Commission is likely to submit in October, 2020. The meeting is part of the Commission’s continued engagement with the States.
In particular, the Commission would like to seek views of the Finance Ministers on how the State FRBMs can be aligned with the Central FRBM legislation and also determine the priority of the state-specific grant proposals that have been submitted by the State Governments. The Commission would also welcome any additional inputs which can inform its approach to the complex issues related to fiscal federalism. Considering the significantly enhanced response both of disaster management and Urban Local Bodies and Rural Local Bodies, an exchange on optimum utilization of funds will also be part of the discussion of the Commission with the States.
The issue of timely constitution of State Finance Commissions as well as the action taken post their recommendations - are likely to be discussed. The Commission also plans to discuss the projections of the State Governments regarding the State Domestic Product (SDP) and the tax buoyancy projected by them for the period of the award of the Commission - this being very significant as it impacts the quantum of resource for the revenue deficit grants.(UNI)