The 15th Finance Commission is likely to give a one-year extension after its term ends on November 30, CNBC-TV18 reported quoting unnamed sources. This is the second time that the commission, led by NK Singh, is getting an extension. The deadline for submitting the report was earlier extended from October 31 to November 30.
The finance commission and the government discussed resource allocation, the status of Jammu and Kashmir vis-a-vis other Union territories like Delhi and Puducherry, and special situation of Ladakh that has a vast territory and sparse population, the channel said citing a newspaper report.
The commission is a constitutional body that finalises the formula for fair distribution of tax revenues between the central and state governments. The makers of Indian constitution outlined the duties and responsibilities of the Union government and the states while allocating funds. The current Finance Commission was constituted in November 2017. Its recommendations will be for a five-year period between April 2020 and March 2025.