15th Finance Commission holds discussions with its Economic Advisory Council
15th Finance Commission holds discussions with its Economic Advisory Council (Photo/Twitter)
The Fifteenth Finance Commission today held a meeting with its Economic Advisory Council (EAC) and discussed various issues the Commission will have to deal with. Finance Commission said the meeting discussed a gamut of issues around GDP growth, tax buoyancy of the Centre and the States, GST compensation, revenue deficit grant and fiscal consolidation.
The Finance Commission of India in a tweet today said, "The 15th Finance Commission is holding an online meeting with the Economic Advisory Council of the Commission today. GDP growth, tax buoyancy of the Centre and the States, GST compensation, revenue deficit grant and fiscal consolidation are some of the topics being discussed."
Specific issues relating to public expenditure on health, investment revival, recapitalization of the financial system and its impact on public finances were also discussed. The Commission will have a meeting with another set of distinguished scholars tomorrow to get their views.
The meeting was chaired by N. K. Singh, Chairman of Fifteenth Finance Commission. The other members of the Economic Advisory Council were Pinaki Chakraborty, Dr. Prachi Mishra, Dr. Omkar Goswami, Dr. Sajjid Z Chenoy, Shri Neelkanth Mishra, Dr. Rathin Roy, Dr. D. K. Srivastava, Dr. Arvind Virmani, Dr. M. Govinda Rao, Dr. Sudipto Mundle, Dr. Shankar Acharya, Dr. Pronab Sen and Dr. Krishnamurthy Subramanian.
The Advisory Council felt that the Finance Commission is faced with an unprecedented situation of uncertainties and will have to take a nuanced approach towards tax devolution to the States. It will also look towards other transfers, financing of expenditures amid revenue strains including through borrowings and the path of fiscal consolidation.
The Members of the Council also felt that the Commission will have to think unconventionally, especially in treating the 5 years at hand from 2021-22 to 2025-26. They advised that the base year 2020-21 and the first year of 2021-22 may need to be viewed differently from the remaining four years when the revenue situation is likely to improve gradually.