Exercise for 15th Finance Commission takes off

BHUBANESWAR: The State Government has started exercise for presenting Odisha’s case before the Fifteenth Finance Commission (FFC) which was notified by the Centre on November 27, 2017. The newly constituted Commission will prepare its report of recommendations for distribution of funds among the states from 2020 to 2025.

Sources said the FFC headed by NK Singh is likely to visit Odisha later this year to review the current status of State’s finances, deficit, debt and steps taken by the State Government for fiscal discipline.
The State Government will prepare estimates of its revenue receipts, both own tax and non-tax revenue and projection of its revenue expenditure from 2020 to 2025. Besides, the annual average growth rates of receipts and expenditures anticipated by the government will also prepared.

Sources said a detailed report on loss suffered by the government due to natural calamities will also be prepared to seek more funds under disaster management. The FFC will review the present arrangement of funding of disaster management initiatives.

The Government in the memorandum will submits views regarding the principles of sharing of taxes between the Centre and states. Besides, the Government will give its opinion formulation of the grants-in-aid to be given to the states. Drastic cuts in central assistance for different schemes has been one of the major cause of difference between the Centre and Odisha Government in recent months.

The Commission had recommended `1.84 lakh crore for Odisha towards its share in central taxes and duties for 2015-20 period which was 165 per cent increase over `69.316 crore recommended by the Thirteenth Finance Commission. The Commission had recommended raise in share of states in central taxes from 32 pc to 42 per cent.