Daily Current Affairs and GK

The Union Cabinet on 22 Nov 2017 gave its nod to set up the 15th Finance Commission that will decide on the distribution of taxes between the Centre, states and local bodies.

The Finance Commission is set up every five years, and the recommendations of the 15th Finance Commission are expected to be implemented from April 1, 2020.

Finance Minister Arun Jaitley said the recommendations of the 15th Finance Commission are keenly awaited as it will have an impact on the way the income from taxes is shared among Centre, states and local bodies.

"The exercise will be different as it will have to take into account the changes in tax sharing after the implementation of GST," Jaitley said.

After the Cabinet decision, the government will have to issue a notification constituting the 15th Finance Commission and announcing its terms of reference.The recommendations of the 14th Finance Commission were implemented from April 1, 2015.

It had changed the fiscal relationship between t