Course Name: In-depth study of Centre State Relations Lesson Name: Fourteenth Finance Commission - IIl Presented by Bhavin Sangoi
About me B.A in Political Science & Psychology Appeared in UPSC CSE Mains Teaching Indian Polity, International Relations, economics &mental Ability since 5 years Experience of teaching for various competitive exams such as NTSE, CET& UPSC Rate, Review and Recommend Follow me on: https://Unacademy.in/user/BhavinSangoi
FRBM Act FRBM Act was enacted in 2003, to bring fiscal discipline in the Union and state spendings Target of 3% fiscal deficit of GDP and elimination of Revenue Deficit, had to be achieved by 31st March 2008. However, due to growing spending on populist schemes and global recession this targets were defered by UPA government.
Government should amend FRBM Act to omit the definition of Effective venue deficit from 1 April Establishment an independent fiscal council to undertake ex ante assessment of revenue deficit from 1 April the fiscal policy implications of budget proposals and their consistency with fiscal policy and rules.
Government should take action to bring into effect section 7A of FRBM Act for the purpose of ex post assessment State government may also amend their FRBM Acts to provide for the statutory flexible limit on fiscal deficit
To accord greater sanctity and legitimacy to fiscal management legislation union and state governments should replace existing FRBM Acts with a debt and fiscal responsibility legislation, invoking article 292 (for union) and article 293(1), for states
Miscellaneous A total revenue deficit grant of Rs 1,94,821 should be awarded to eleven states Raise the ceiling limit of p Raise the ceiling limit of profession tax from Rs 2500 per annum to Rs 12,000 per annum
Profession tax Amend article 276(2) to increase the limits on the imposition of profession tax by states. Allow parliament to fix the limit based on finance commission's recommendation and union government should prescribe a uniform limit for all states
BA Political Science and Psychology, Mumbai University. Teaching Polity, Economics and international relations for 7 years.