User talk:Gaurav4291/FC2016

14th FC

 * Under Y.V Reddy
 * For the period 2015-20
 * Tax devolution: 32% to 42%
 * Various Indicators:
 * 1. Population 1971 – 17.5%
 * 2. Population 2011 – 10%
 * 3. Size – for smaller states 2% and general – 15%
 * 4. Forest cover – 7.5%
 * 5. Income distance (distance from highest earning state) – 50%
 * New addition - Forest cover, Population (2011). Removed - Fiscal discipline — Preceding unsigned comment added by Gaurav4291 (talk • contribs) 10:16, 30 June 2016 (UTC)

Fiscal deficit for state

 * Finance commission recommended 3% fiscal deficit for states with option to relax it to 3.5% in certain circumstances
 * States can increase this limit by amending it’s fiscal responsibility and budget management act
 * 0.25% can be relaxed for each case
 * 1 – if the debt to GSDP ratio of a state was below 25% in the preceding year
 * 2 – if interests payments were less than 10% of the revenue receipts in the preceding year

Compensation to states for GST

 * GST compensation fund to be formed
 * Revenue compensation to states will be paid for 5 years
 * 100% for first 3years, 75% for 4th and 50% for 5th year

Grants to local govt.

 * This grant is given to panchayats and municipalities
 * This grant has two parts a basic grant and a performance grant
 * Panchayats – 90% basic grant and 10% performance grant
 * Municipalities – 80% basic grant and 20% performance grant

Amendments to FRBM act

 * Formation of independent fiscal council to evaluate fiscal policy
 * Removing effective revenue (difference between revenue deficit and grants for asset creation)
 * FRBM act can be replaced with a debt ceiling and fiscal responsibility act