Finance Commission gets presentation from IMF
Posted on : 23 Jan 2020Views: 852
- A team of International Monetary Fund's (IMF) Fiscal Affairs Department has given a presentation to the 15th Finance Commission of India on 'resource mobilisation over the next five years.'
- Some members of the Finance Commission's Economic Advisory Council also participated in the discussions, which was chaired by NK Singh, Chairman, Finance Commission.
- The discussions were centered around options for improving the tax resources of the general government, with special focus on improving the revenue realisation from the GST.
- It was presented that the current collections are significantly below an estimated revenue frontier for the country, arrived at using robust panel data analysis of comparator countries.
- It was further discussed that rationalisation of the rate structure, as well as improvements in compliance and collection efficiency of GST and other taxes, can move India much closer to the frontier.
- The Finance Commission is a constitutionally mandated body that is at the centre of fiscal federalism.
- Set up under Article 280 of the Constitution, its core responsibility is to evaluate the state of finances of the Union and State Governments, recommend the sharing of taxes between them, and lay down the principles determining the distribution of these taxes among States.
- The first Finance Commission was set up in 1951 and there have been fifteen so far.
Article Related Questions
Consider the following statements regarding Finance Commission
1.The Finance Commission is a constitutionally mandated body that is at the centre of fiscal federalism.
2.It is set up under Article 280 of the Constitution.
3.The first Finance Commission was set up in 1951 and there have been fifteen so far.
Which of the following statement is/are correct?
1.1 and 2 only
2.2 and 3 only
3.1 and 3 only
4.1, 2 and 3
Right Ans : 1, 2 and 3