Report of the Fourteenth Finance Commission
The 14th Finance Commission has recommended a record 10% increase in the states' share in the Union taxes to 42%, which has been accepted by the Centre and will give the states an additional Rs 1.78 lakh crore in 2015-16. The report of the Commission, headed by former RBI Governor Y V Reddy, also recommended a grants-in-aid of Rs 48,906 crore for 11 revenue deficit states, including Andhra Pradesh post division, West Bengal and Jammu and Kashmir, for 2015-16. For the period up to 2020, it will be over Rs 1.94 lakh crore. The total devolution to the states in 2015-16 will be Rs 5.26 lakh crore, as against Rs 3.48 lakh crore in 2014-15, representing an increase of Rs 1.78 lakh crore. The total devolution to states during the five year period up to 2019-20 will be Rs 39.48 lakh crore.