Who was the Chairman of the 14th Finance Commission?
By Balaji
Updated on: April 7th, 2023
Governor Y. V. Reddy was the chairman of the 14th Finance Commission. The 14th Finance Commission was constituted on 2nd January 2013 and the recommendations of the 14th Finance Commission came into force in April 2015. The debt of the Union remained within the limits prescribed by the previous commission. This is mainly due to higher nominal GDP growth.
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Chairman of the 14th Finance Commission
Yaga Venugopal Reddy the Past RBI Governor was the chairman of the 14th Finance Commission. After peaking at 11.9 percent of GDP in 2007-08, gross tax revenue fell by more than 1.7 percentage points in 2012-13. Excise duty and service tax rates were reduced in response to the global economic crisis.
- The tax-to-GDP ratio has fallen.
- Interest income from outstanding state government loans has decreased.
- Capital income from non-debt sources fluctuated.
- The income from divestments fell short of expectations.
- Due to foregone revenue, tax expenditure, and rising rates of cesses and surcharges, states have been excluded from a large portion of the divisible pool.
- The fiscal management quality was characterized by less-than-desirable revenue growth, a significant decrease in capital expenditure, and a high level of subsidies.
Goods & Services Tax
The Commission has advised the Union to establish a Goods & Services Tax (GST) Compensatory Fund.
- This compensation covers the entire shortfall in the first year, 75% in the second, and 50% in the third.
- This additional financial burden imposed on the Union Government must be viewed as an investment with medium- and long-term payoffs.
Summary:
Who was the Chairman of the 14th Finance Commission?
The 14th Finance Commission was chaired by former Reserve Bank of India (RBI) Governor Y.V. Reddy. On January 2, 2013, the Fourteenth Finance Commission was established. The recommendations of the 14th Finance Commission went into effect in April 2015.
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