The Chief Economic Advisor (CEA) to Central government, Dr. Krishnamurthy Subramanian is appointed as twelfth (12) member of Advisory Council of Fifteenth (15th) Finance Commission (FCc). It now has 12 members, which include noted economists Surjit Bhalla, Arvind Virmani, Indira Rajaraman and M Govinda Rao among others.
Role and Function :
It will advise FC on any relevant matter or subject related to Terms of Reference (ToR) of Commission. It will assists FC in preparing any research paper or study which would enhance commission’s understanding on issue contained in its ToR. It will help improve quality, reach and enforcement of FC recommendations.
Finance Commission :
It is constituted under article 280 of Constitution by President of India. It mainly gives its recommendations on tax devolution i.e. distribution of tax revenues between Union and States and amongst states themselves. First FC was constituted under chairmanship of Shri K.C. Neogy on 6th April, 1952.
Fifteenth Finance Commission was constituted in November 2017, to give recommendations for tax devolution and other fiscal matter for five fiscal years, 1 April 2020- 31 March 2025. It is chaired by N. K. Singh, and members Ajay Narayan Jha, Ashok Lahiri and Anoop Singh. Ramesh Chand is a part-time member in FC.