The Fifteenth Finance Commission (XVFC) led by Chairman Sri N K Singh,  submitted its Report for the period 2021-22 to 2025-26 to the Hon’ble President of India. As per the terms of reference (ToR), the Commission was mandated to give its recommendations for five years from 2021-22 to 2025-26 by 30 October, 2020.

This time the Commission was mandated to give its recommendations on many unique and wide-ranging issues in its terms of reference such as:

    • vertical and horizontal tax devolution

    • local government grants

    • disaster management grant

    • to examine and recommend performance incentives for States in areas like

        ◦ power sector

        ◦ adoption of DBT

        ◦ solid waste management

    • Also to examine whether a separate mechanism for funding of defence and internal security ought to be set up and if so how such a mechanism could be operationalised.

About the report

    • Report has been organised in four volumes.

    • Volume I and II, as in the past, contain the main report and the accompanying annexes.

    • Volume III is devoted to the Union Government and examines key departments in greater depth, with the medium-term challenges and the roadmap ahead.

    • Volume IV is entirely devoted to the States.

    • The Report will be available in the public domain once it is tabled in the Parliament by the Union Government along with explanatory memorandum/action taken report on the recommendations contained in the Report.

    • The cover and title of the Report are also unique in this Report- “Finance Commission in Covid Times” and the use of Scales on the cover to indicate the balance between the States and the Union.

(The author is a trainer for Civil Services aspirants. The views expressed here are personal.)