Mohinder Verma
JAMMU, May 10: The 14th Finance Commission headed by former Reserve Bank of India Governor, Dr Y V Reddy will be visiting Jammu and Kashmir on June 5-6 to hold consultations with the Government and key stakeholders for finalizing its State specific recommendations.
Official sources told EXCELSIOR that Chief Secretary, Mohd Iqbal Khandey and Principal Secretary, Finance, B B Vyas have received a communication that 14th Finance Commission would be visiting Jammu and Kashmir on June 5 and 6 and interact with different stakeholders including Chief Minister, Finance Minister, Planning Minister and top bureaucrats of the State.
The Finance Commission comprising Dr Y V Reddy (Chairman), Prof Abhijit Sen, Member Planning Commission of India, Sushma Nath, former Finance Secretary, Dr M Govinda Rao, Director National Institute for Public Finance and Policy and Dr Sudipto Mundle, former Acting Chairman of National Statistical Commission will ascertain the priority areas of Jammu and Kashmir during the 14th Finance Commission award period (April 2015 to March 2020), sources said.
Sources informed that the Finance Commission would also review finances of the State keeping in mind the fiscal consolidation road map that was laid out by his predecessor Vijay Kelkar, the head of 13th Finance Commission.
They disclosed that Chief Secretary and Principal Secretary Finance have directed all the Administrative Secretaries to furnish the details vis-à-vis the priority areas of different sectors to the Finance Department within shortest possible time so that a comprehensive memorandum is prepared and submitted to the Finance Commission on its visit.
According to the sources, Government will make a detailed presentation on the finances of the State and its projections for the 14th Finance Commission award period. “The possibility of Commission interacting with the representatives of political parties and trade and industry associations cannot be ruled out”, they said while disclosing that Finance Department has set into motion an exercise to work out the schedule of meetings and interactions to be held with the visiting Finance Commission.
In response to a question, they said, “the Finance Commission works out non-plan grant required by the States during a period of five years. The award of the Finance Commission also includes assistance for carrying out institutional reforms or strengthening the same besides extension of required help for innovative steps”.
“The strengthening of urban local bodies and panchayats would also come up for serious discussion with the Finance Commission and it is expected that the State would make request for extension of more financial assistance for these institutions”, sources said, adding the requirement of the State for State specific problems owing to topography would also be important subject of discussion.
It is pertinent to mention here that the 14th Finance Commission will have to finalize its recommendations by October 2014 after completing its discussions with all the State Governments, the Union Government and relevant stakeholders. The recommendations of the 14th Finance Commission will come into effect from April 2015 for a period of five years.
The Finance Commission is set up every five years to recommend how net earnings of taxes are to be divided between the Union and States and subsequently among the States. Suggesting measures for maintaining a stable and sustainable fiscal environment consistent with equitable growth including suggestions to amend the Fiscal Responsibility Budget Management Act is one of the main functions of the 14th Finance Commission.
Follow our WhatsApp channel