New panel will also look into impact of GST, including payment of compensation for possible loss of revenues for 5 years.
New Delhi: The N K Singh headed 15th Finance Commission, set up to recommend a fiscal consolidation roadmap for sound management of government finances, has invited suggestions from stakeholders.
It was set up last November to recommend devolution of shareable central taxes to states and their inter-se distribution. It will submit the recommendations by October 30, 2019.
"The 15th Finance Commission has invited suggestions/views on issues related to the terms of reference from the members of the general public, institutions and organisations," said a statement by the finance ministry.
The views have to be sent by June 30, 2018.
The Commission will take into account the Centre and states' responsibility to adhere to appropriate levels of general and consolidated government debt and deficit levels, while fostering higher inclusive growth in the country.
It will also examine whether revenue deficit grants be provided at all.
The Commission will review the current status of the finance, deficit, debt levels, cash balances and fiscal discipline efforts of the Union and the States, and recommend a fiscal consolidation roadmap for sound fiscal management.
Besides, it will look into the impact on the fiscal situation of the Centre of substantially enhanced tax devolution to states following recommendations of the 14th Finance Commission.
It had suggested raising share of states in central taxes to 42 per cent from 32 per cent, which has been implemented from 2015-16 fiscal.
The new panel will also look into the impact of the GST, including payment of compensation for possible loss of revenues for 5 years, and abolition of a number of cesses on the finances of Centre and states.
The Commission's recommendation would be implemented for a period of 5 years commencing April 1, 2020.