Finance Commission, RBI discuss necessity of setting up state finance panel

MUMBAI: The Finance Commission and the Reserve Bank of India on Wednesday held a meeting and discussed the necessity of setting up state finance commission for respective state governments.

They also talked about the continuity of the Finance Commission. It was felt that this was required more in view of the fiscal management requirements of the states, especially given the absence of mid-term reviews of awards granted by the Finance Commission, as it used to happen earlier with the awards granted by the Planning Commission.

The 15th Finance Commission headed by chairman N K Singh held a detailed meeting with RBI Governor Shaktikanta Das and Deputy Governors of RBI here.

Key issues raised by the two were public sector borrowing requirements, need for expenditure codes, especially given that expenditure norms vary from state to state and role of states in growth and inflation, for instance, role of states in ease of doing business. (AGENCIES)



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