Twelfth Finance Commission

The Twelfth Finance Commission was incorporated in the year 2005. The commission made recommendations for the distribution of the net proceeds of the taxes between the Union and the states. It also recommended taking of certain measures for augmenting the Consolidated Fund of a state. It also reviewed the financial status of the states and ensured macro-economic stability in the same, evaluated the debt positions of the states and the schemes implemented by the Central Government to ensure an improved financial system.

Facts about Twelfth Finance Commission of India-

The activities of the Twelfth Finance Commission of India are like-

To make recommendations for the distribution of net proceeds of the taxes between the Union and the states
To make recommendations for the norms related to grants-in-aid of the states to raise their revenues
To make recommendations to augment the Consolidated Fund of India allocated to various states
To review the financial condition of the Indian states and suggest restructuring of the public finances to ensure an improved financial system along with macro-economic stability
To evaluate the resources allotted by the Central Government to the states in India based on the taxation levels
To maintain the capital assets and the expenditure on non-plan schemes
To provide facilities with respect to irrigation projects, power projects, departmental undertakings, public sector enterprises and so on
To review the Fiscal Reform Facility formulated by the Central Government to facilitate an improved financial system in the states
To evaluate the arrangements made with regard to the financing of calamities by National Calamity Contingency Fund and the Calamity Relief Fund
To present a detail of the State-wise estimates of receipts and expenditure

Important members in Twelfth Finance Commission-

Chairman - Dr. C. Rangarajan

Other members-

Shri T.R Prasad, IAS (Retd.)
Prof. D.K Srivastava
Dr.Shankar Acharya, Part time Member
Shri. Som Pal, Part time Member
Member Secretary - Dr. G.C Srivastava, IAS

Highlights of the Twelfth Finance Commission of India-

Cost of Provision of Sewerage Water Treatment
Enhancing Fiscal Efficiency
Measures needed to augment the Consolidated Fund of the States
Prioritize the subjects for releases of funds to Panchyati Raj Institutions
Inter State Comparison of HDI
Taxes on Commodities and Services in India
State Public sector undertaking (SPSUs) and State Road Transport Undertakings (SRTUs)
Municipal Solid Waste Management
A Summary of Recommendations
Functioning of Finance Commissions which also includes the State Finance Commissions
Study on State Infrastructure
Phasing out the Subsidy Elements: Petroleum Products, Food and Fertilizers