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13th Finance Commission report on Feb 25: FinMin
February, 24th 2010

The 13th Finance Commission's recommendations on sharing of tax receipts between the Centre and the states would be tabled in Parliament on February 25, Rajya Sabha was informed today.

"The recommendations of the 13th Finance Commission with the explanatory memorandum as to action taken on recommendations will be placed before both the Houses of Parliament on February 25," Minister of State for Finance Namo Narain Meena told the house in a written reply.

The report assumes importance in the backdrop of the government's decision to implement GST and the Direct Tax Code. As per the current indications, the new tax structures on direct and indirect taxes are likely to be implemented from April 2011.

The Finance Commission, headed by Vijay Kelkar, had submitted the report to President Pratibha Patil on December 30, 2009. The report was later considered by the Union Cabinet.

Earlier, Finance Minister Pranab Mukherjee had said the Finance Commission's recommendations would be reflected in the Budget to be unveiled in the Lok Sabha on February 26.

The recommendations would cover the five-year period commencing from April 1, 2010.

The Commission was appointed in November 2007 to review the finances of the Union and the states, and the sharing of proceeds from taxes between the two.

In September last year, the government had extended the term of the commission by three months up to January 2010, but had asked it to submit the report by December 30, 2009. It was earlier required to submit its report by October 31, 2009.

 
 
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