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DAILY NEWS ANALYSIS
23 November, 2019
Min Read
News: Fifteenth Finance Commission (FFC) chairman N.K. Singh on Friday sought a leverage with the Goods and Services Tax (GST) Council, arguing that tax rate cuts and grant of exemptions decided solely by the council affect the FFC’s goal of optimizing revenue targets of the Centre and states.
Prelims and Mains focus: on the Centre-states tussle related to GST and the role of the Finance Commission
Context: The Centre and state governments seem to be on a collision course amid a sharp economic downturn that has eroded their financial positions.
Background:
Concerns raised by 15th FC:
Significance of FC comments
Singh argued that the nature of governance has changed fundamentally, with the Central government taking the lead in several national priority areas such as drinking water and power supply. He also said an expert group should look into rationalization of centrally-sponsored schemes.
Source: Livemint
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