Date:15/11/2007 URL: http://www.thehindu.com/2007/11/15/stories/2007111561481700.htm

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Kelkar to head 13th Finance Commission

Special Correspondent

Vijay L. Kelkar

NEW DELHI: President Pratibha Patil on Wednesday constituted the 13th Finance Commission, under the chairmanship of the former Finance Secretary Vijay L. Kelkar, to make recommendations on the norms for distribution of the net tax proceeds between the Union and the States.

The recommendations will cover the period from April 1, 2010 to March 31, 2015. The Commission is expected to make available its report by October 31, 2009.

The Finance Commission is set up under Article 280(1) of the Constitution every five years.

Apart from Dr. Kelkar, the full-time members are Indira Rajaraman, emeritus professor, National Institute of Public Finance and Policy; Abusaleh Shariff, chief economist, National Council of Applied Economic Research; and Atul Sarma, former Vice-Chancellor, Rajiv Gandhi University. Planning Commission member B.K. Chaturvedi has been named part-time member, while Sumit Bose will be Secretary to the Commission.

According to an official statement here, the Commission will also look into the principles governing grants-in-aid of the revenues of the States out of the Consolidated Fund of India as also the measures needed to augment the Consolidated Fund of a State to supplement the resources of panchayats and municipalities.

Review of finances

The Commission would review the finances of the Union and the States and recommend steps for maintaining a stable and sustainable fiscal environment consistent with equitable growth.

It would take stock of the existing arrangements for financing disaster management with reference to the National Calamity Contingency Fund, the Calamity Relief Fund and the funds envisaged in the Disaster Management Act, 2005.

The Commission would take into consideration the likely impact of the implementation of the Goods and Services Act with effect from April 1, 2010, including on foreign trade.

It has also been asked to consider the need for improving the quality of public expenditure to obtain better outputs and outcomes.