The Report of the Fifteenth Finance Commission

Shankar School of Banking February 2 , 2021 808

NATIONAL NEWS

The 15th Finance Commission was constituted by the President of India, under Article 280 of the constitution, in November 2017 under the chairmanship of NK Singh.
The Finance Commission has a chairman and four members appointed by the President of India.
The Fifteenth Finance Commission (XV-FC) was constituted in November 2017 to give recommendations for vertical and horizontal devolution of taxes for five fiscal years, commencing 1 April 2020.
The 15th Finance Commission proposed recommendations for both vertical and horizontal devolution.
- Vertical - 41% of the divisible pool to be devolved to the States in the year 2020-21.
- Horizontal – Devolution is based on three broad categories - Need-based, Equity-based and Performance-based.

The Army Dental Corps was celebrating its 80th Raising Day on February 01, 2021.
On 14^th April, 1938, at Rawalpindi, the First regiment was established with the Chevrolet Armoured Cars and began training in May, 1938.
This new era of Armoured Vehicles was started and celebrated as Armoured Corps Day.
The Armoured Corps Centre and School is the premier training establishment of Indian Army in imparting technical and tactical training to its officers.
On this occasion, Director General Dental Services & Colonel Commandant Army Dental Corps Lt General N K Sahoo laid down a wreath at the National War Memorial in New Delhi to honour the fallen heroes

Union Education Minister addressed the inaugural ceremony of the ASEAN India Hackathon on 1^st February
This Hackathon will provide a unique opportunity to India and ASEAN countries to solve their common identified challenges under two broad themes of “Blue Economy” and “Education”.
The ASEAN-INDIA Hackathon is an initiative taken by Ministry of Education on the clarion call of Prime Minister of India Shri Narendra Modi.

Facts on ASEAN:

Headquarters: Jakarta, Indonesia.
Founded: 1967
Members: Indonesia, Thailand, Singapore, Malaysia, Philippines, Vietnam, Brunei, Cambodia, Myanmar (Burma), Laos
Dialogue Partners: Australia, Canada, China, India, Japan, Korea, New Zealand, Russia, US and EU

The fourth Foreign Office Consultations between India and Qatar were held virtually on 31^st January 2021.
Both sides reiterated their commitment to working closely together in these areas and further discussing new areas of cooperation.
The two sides also exchanged views on issues of mutual interest at the regional and multilateral levels, including cooperation at the UN and other international fora.
Both sides agreed to convene the first Joint Commission Meeting at Foreign Minister level at an early date.

Facts on Qatar:

The UK is applying to join a free trade area made up of 11 Asia and Pacific nations, under its post-Brexit plans.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) - trade agreement formed in 2018 which includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
In total, it covers a market of around 500 million people, generating more than 13% of the world's income.

The Union Minister for Finance & Corporate Affairs, Smt Nirmala Sitharaman presented the Union Budget 2021-22 in Parliament on 1^st February, which is the first budget of this new decade and also a digital one in the backdrop of unprecedented COVID-19 crisis.
The Budget proposals for 2021-22 rest on 6 pillars.
1. Health and Wellbeing
2. Physical & Financial Capital, and Infrastructure
3. Inclusive Development for Aspirational India
4. Reinvigorating Human Capital
5. Innovation and R&D
6. Minimum Government and Maximum Governance
Some important highlights of Budget 2021 are:
- A new scheme PM Atma Nirbar Swasthya Bharat Yojana to be launched.
- Mission POSHAN 2.0 to be launched to improve nutritional outcomes.
- National Rail Plan created to bring a future ready Railway system by 2030.
- 100% electrification of Railways to be completed by 2023.
- National Hydrogen Mission to be launched to generate hydrogen from green power sources.
- No IT filing for people above 75 years who get pension and earn interest from deposits.
- Proposal to increase FDI limit from 49% to 74%.
- An asset reconstruction company will be set up to take over stressed loans.
- Proposal to decriminalise Limited Liability Partnership Act of 2008.
- Five major fishing hubs, including Chennai, Kochi and Paradip, to be developed.
- Social security to be extended to gig and platform workers.
- Agri infrastructure cess of ₹2.5 per litre on petrol and ₹4 on diesel.

Union Finance Minister, in the Budget 2021-22, announced the introduction of Single Securities Markets Code (SSMC).
The SSMC will be the rationalised consolidation of the provisions of SEBI Act, 1992, Depositories Act, 1996, Securities Contracts (Regulation) Act, 1956 and Government Securities Act, 2007.
With an objective to provide protection to the investors, the Finance Minister proposed to introduce an investor charter as a right of all financial investors across all financial products.
Also, she announced that a permanent institutional framework to be created to purchase Investment Grade Debt Securities.

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