Govt accepts Fin Comm’s proposals

The Commission’s first report for financial year 2020-21 commencing from April 1, 2020 and the Action Taken Report on it was tabled in Parliament by Finance Minister Nirmala Sitharaman on Saturday.

The ATR said the Commission felt that financial resources equivalent to 1 per cent of the net proceeds of the Union taxes should be retained with the Central Government for financing the requirements of the newly-formed Union Territories of J-K and Ladakh.  

This was also accepted by the Centre, she said.  The Commission also recommended Grants-in-Aid of revenues of States for revenue deficit, special status, nutrition grants, local bodies and disaster management under Article 275.