Deputy Chief Minister O Panneerselvam on Tuesday charged that the final report of the 15th Finance Commission (FC) has belied the hopes of performing States like TN.
Analysing the structural tax gap in India, the 15th Finance Commission pegged the shortfall in tax collections to be over 5% of GDP as against its potential.
The State government is upset with the final report of the Fifteenth Finance Commission (FFC), which was tabled in Parliament on Monday.
Reacting to the Commission's recommendations, Chief Minister Naveen Patnaik said decrease in horizontal share of Odisha will seriously impact its economy.
Excluding the union territories of Ladakh and J&K, the tax devolution share suggested by the Finance Commission is 41 per cent of the total divisible pool.
Sitharaman also said states will get 41 per cent share of taxes as per the 15th Finance Commission recommendation and the government has accepted the recommendation.
The higher weight was assigned for better show in population control.
The report titled 'Finance Commission in Covid Times' was submitted by Singh along with members of the Commission -- Ajay Narayan Jha, Anoop Singh, Ashok Lahiri and Ramesh Chand.
The 15th Finance Commission, headed by N.K Singh, has concluded its deliberations and will submit its final report on November 9 to the President of India.
The 15th Finance Commission is mandated to make their final report for 2021-26 available by October 30, 2020.
She asked the state government to discuss the issue with the 15th Finance Commission and let the latter decide.
Finance Commission mulling relaxations in GST compensation, tax devolution to states
The economic advisory panel has also flagged concerns over the Centre’s mounting debt
The 15th Finance Commission is scheduled to meet its economic advisory panel on Friday
The topic of the meeting is 'Final discussion on GDP growth, tax buoyancy of the Centre and the States, GST compensation, revenue deficit grant and fiscal consolidation'.