The Union Cabinet approved extension the terms of the Fifteenth Finance Commission to address the funding requirements for defence and internal security as also extending its term to November 30, 2019.
Daily Current Affairs Quiz 2019
“The Union Cabinet has approved the proposed amendment to enable the Fifteenth Finance Commission to address serious concerns regarding the allocation of adequate, secure and non-lapseble funds for defence and internal security of India,” the government said in a statement.
“Under the terms of reference (ToR) of the Commission, it is proposed to ensure an assured allocation of resources towards defence and internal security imperatives.” The amendment provides that the Fifteenth Finance Commission will also examine whether a separate mechanism for funding of defence and internal security be set up and if so, how such a mechanism could be operationalised. The Fifteenth Finance Commission was constituted by the President of India in November 2017 and was constituted to give recommendations for the five-year period starting April 1, 2020.
“The Union Cabinet has approved the extension of the Commission’s term up to November 30, 2019,” it added. “It will enable the Commission to examine various comparable estimates for financial projections in view of reforms and the new realities to finalise its recommendations for the period 2020-2025.”
About the Amendment of Fifteenth Finance Commission
The amendment provides that the Fifteenth Finance Commission examines whether a separate mechanism for funding of defence and internal security to be set up and a mechanism could be operationalized.
The Fifteenth Finance Commission constituted by the President on 27th November 2017.
The report on the basis of its Terms of Reference by 30th October.
It covers a period of five years from 1st April 2020.
The constitution of the Commission in the backdrop of various budgetary reforms introduced by the Centre in the past four years.
The replacement of the Planning Commission by NITl Aayog and removal of the distinction between Non-Plan and Plan expenditure.
The Terms of Reference of the Commission takes into account these reforms.
