Union Cabinet approves extension of the term of the 15th Finance Commission

Cabinet approves extension of the term of the 15th Finance Commission
Question: The Union Cabinet has approved the extension of the term of 15th Finance Commission up to which period?
(a) 30th November, 2019
(b) 30th December, 2019
(c) 30th April, 2020
(d) 30th October, 2019
Answer: (a)
Related facts:
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  • The Union Cabinet chaired by Prime Minister Narendra Modi has approved the extension of the term of 15th Finance Commission up to 30th November, 2019.
  • It will enable the Commission to examine various comparable estimates for financial projections in view of reforms and the new realities to finalize its recommendations for the period 2020-2025.

Background:

  • The 15th Finance Commission has been constituted by the President on 27th November, 2017 in pursuance of Clause (1) of Article 280 of the Constitution and Finance Commission (Miscellaneous Provisions) Act, 1951.
  • The Commission was to submit its Report on the basis of its Terms of Reference (ToR) by 30th October, 2019 covering a period of five years commencing from 1st April, 2020.
  • The constitution of the Commission has been in the backdrop of various major fiscal/budgetary reforms introduced by the Union Government in the past four years like closure of the Planning Commission and its replacement by NITl Aayog, , introduction of Goods and Services Tax (GST) from July 2017 and New FRBM architecture with debt and fiscal deficit path.
  • The ToR of the Commission takes into account the above fiscal/budgetary reforms.
  • The task of determining the expenditure and receipts of the Union and State Governments based on which the Commission shall make its recommendations is time consuming, as checks for data consistency across time and data sets become challenging.

Link:

http://pib.nic.in/newsite/PrintRelease.aspx?relid=191850

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