Srinagar: The 14th Finance Commission will visit Jammu and Kashmir from June 5 to 7 to hold meetings for identifying the heads under which Government of India funds are to be allocated to the state during the next five years.
The Commission headed by former Reserve Bank of India Governor, Dr Y V Reddy would interact with different stakeholders including Chief Minister, Finance Minister, Planning Minister and top bureaucrats of the state during the visit.
Besides Dr Reddy (chairman), the Commission comprising 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.
The Commission has been tasked to make recommendations regarding the sharing of GoI taxes, principles governing grants-in-aid to states and transfer of resources to local bodies.
The terms of reference of the Commission for making the recommendations include the distribution between the GoI and the States of the net proceeds of taxes which are to be, or may be, divided between them; the principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India and the sums to be paid to the States which are in need of assistance by way of grants-in-aid of their revenues; and the measures needed to augment the Consolidated Fund of a state to supplement the resources of the Panchayats and Municipalities in the state on the basis of the recommendations made by the Finance Commission of the state.
The Commission has been tasked to make recommendations for a new fiscal consolidation road map; devising a mechanism to compensate states in case of revenue loss due to the implementation of a single goods and services tax (GST); a blueprint for subsidy reform; and insulating the pricing of public utility services such as drinking water, power and public transport from policy fluctuations through statutory provisions.
The Commission has also been asked to look into the level of subsidies required for sustainable and inclusive growth, and the equitable sharing of subsidies between the GoI and state governments.
It will also draw up recommendations on making public sector enterprises more competitive and market-oriented; their listing and divestment; as well as ways of relinquishing non-priority enterprises.
The commission has to submit its report by the end of October this year and barring three states—J&K, Chhattisgarh and Arunachal Pradesh , it has already completed preparatory visits to 25 others states in India.
The Commission has to indicate the basis on which it has arrived at its findings and make available the State-wise estimates of receipts and expenditure.
The recommendations of the 14th Commission will come into effect from April next year for a period of five years.
Meanwhile, in a related development, the state government appointed 15 Liaison Officers with the Members of the Commission.