The Union Cabinet today extended the term of the 15th Finance Commission by 11 months to October 30th next year. The Commission is expected to submit its interim report on Saturday.
This will suggest formulae for tax devolution for the 2020-21 fiscal year. Since the validity of previous formulae ends on March 31, 2020, and the Commission needs more time in the wake of the change of stature of Jammu and Kashmir, submission of an interim report was needed.
The Union Cabinet approved the 15th Finance Commission plan to submit the report for the fiscal year 2020-21 immediately and decided to extend the tenure of the panel for the presentation of the final report covering financial years 2021-22 to 2025-26 by October 30, 2020.
The extension of the term will enable the Commission to examine various comparable estimates for financial projections in view of reforms and the new realities to finalise its recommendations for the period 2020-2026.
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