Source: paper tyari
The report of the 15th Finance Commission was tabled in the Lok Sabha by FM Nirmala Sitharaman and has recommended that the states be given 42 per cent of the divisible tax pool of the Centre during the period 2021-22 to 2025-26. As per the glide path, fiscal deficit should be 6 per cent in 2021-22, 5.5 per cent in 2022-23, 5 per cent in 2023-24, 4.5 per cent in 2024-25, and 4 per cent in 2025-26.
This report has been organised in four volumes. Volume I and II, as in the past, contain the main report and the accompanying annexes. Volume III is devoted to the Union Government and examines key departments in greater depth, with the medium-term challenges and the road map ahead. Volume IV is entirely devoted to states.The report provides a range for fiscal deficit and debt path of both the Union and states and also suggested additional borrowing room to states based on performance in power sector reforms