The 13th Finance Commission: A Summary
The Thirteenth Finance Commission (TFC), constituted under the chairmanship of Dr. Vijay Kelkar, submitted its report for the period 2010-2015. Its primary mandate was to recommend principles governing the distribution of tax revenues between the Union and the States (vertical devolution), and the allocation of these revenues among the States (horizontal devolution). It also examined the principles governing grants-in-aid to the States and measures needed to improve the financial position of the Union and States.
Key Recommendations:
Fiscal Consolidation: The TFC strongly emphasized fiscal consolidation, urging both the Union and State governments to reduce their debt levels. It recommended a target of reducing the combined debt-to-GDP ratio to 68% by 2014-15. This involved achieving revenue surpluses and containing expenditure.
Vertical Devolution: The Commission recommended increasing the States’ share in the net proceeds of shareable central taxes to 32%, a significant increase from the 30.5% recommended by the Twelfth Finance Commission. This aimed to provide States with greater fiscal autonomy and resources for development.
Horizontal Devolution: The criteria for distributing tax revenues among the States were revised. The TFC gave significant weight to fiscal discipline, measured by a State’s tax effort and its ability to manage its debt. Other factors included population, area, and distance from highest per capita income. The Commission attempted to balance equity and efficiency considerations in its formula.
Grants-in-Aid: The TFC recommended various grants to States, including revenue deficit grants for those States with a post-devolution revenue deficit, special area grants for addressing specific regional needs, and grants for local bodies (Panchayati Raj Institutions and Urban Local Bodies) to strengthen their financial resources and service delivery capacity.
GST and Compensation: Recognizing the importance of the Goods and Services Tax (GST), the TFC recommended a framework for compensating States for any revenue losses arising from the implementation of GST. This was crucial for ensuring the smooth transition to the new tax regime.
Disaster Management: The Commission reviewed the financing of disaster management and recommended measures to strengthen the National Disaster Management Authority (NDMA) and State Disaster Management Authorities (SDMAs). It also recommended a revised cost-sharing pattern between the Union and the States for disaster relief.
Other Recommendations: The TFC also made recommendations relating to public sector enterprises, incentivizing reforms in various sectors such as power and irrigation, and strengthening the monitoring and evaluation of government programs.
Impact and Significance:
The 13th Finance Commission’s report played a crucial role in shaping the fiscal landscape of India. The increased devolution to States provided them with more resources for development programs and social welfare initiatives. The emphasis on fiscal consolidation helped to improve the financial health of both the Union and the States. The recommendations on grants for local bodies contributed to strengthening decentralized governance. The TFC’s focus on performance-based incentives encouraged States to adopt reforms in various sectors.
In essence, the Thirteenth Finance Commission’s report aimed to foster cooperative federalism, promote fiscal discipline, and enhance the efficiency and effectiveness of public expenditure in India.
1434×800 finance commission report raus ias from compass.rauias.com 
791×1119 finance commission report dokumentips from dokumen.tips 
630×474 finance commission report from www.studyiq.com 
352×185 finance commission report finance commission from themagiclamp2019.blogspot.com 
630×306 finance commission report financial year from diligentias.com 
4500×4321 fifteenth finance commission interim report recommendations upsc from www.iasexpress.net 
1024×768 finance commission powerpoint from www.slideserve.com 
240×320 summary finance commission report summary from pdf4pro.com 
1080×1080 comprehensive singapore islamic finance report from islamicfinancesg.com 
1200×602 finance commission submitted final report from empowerias.com 
602×851 finance commission submits report check recommendations from www.zeebiz.com 
759×422 finance commission report tabled parliament from indianexpress.com 
300×180 finance commission game changer from www.livemint.com 
900×600 discuss recommendations finance commission from edukemy.com 
791×1024 finance committee report thursday september from studylib.net 
1280×640 tripura cm submits memo finance commission members eastmojo from www.eastmojo.com 
756×404 terms reference tor sixteenth finance commission fc from www.ensureias.com 
