Who was the Chairman of the 14th Finance Commission?

By Ritesh|Updated : September 7th, 2022

Governor Y. V. Reddy was the Chairman of the 14th Finance Commission. The 14th Finance Commission was constituted on January 2, 2013, and the recommendations of the 14th Finance Commission came into force in April 2015.

14th Finance Commission - Chairman

  • The Union's debt remained within limits set by the previous Commission.
  • The reason is primarily the high nominal GDP growth.
  • 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 decreased.
  • Interest income from outstanding loans from state governments declined.
  • There were fluctuations in non-debt capital income.
  • Income from divestments fell short of estimates.
  • States have been excluded from much of the divisible pool due to foregone revenue, tax expenditure, and rising rates of cesses and surcharges.
  • The quality of fiscal management was characterized by less than desirable revenue growth, a sharp reduction in capital expenditure, and a high level of subsidies.

GST:

  • The Commission has recommended the Union set up a GST Compensatory Fund.
  • This compensation addresses 100% of the shortfall in the first year, 75% in the second year, and 50% in the third year.
  • This additional fiscal burden on the Union Government must be taken as an investment to reap medium- and long-term returns.

Public services:

  • Power supply
  • Transport
  • Water source

Summary:

Who was the Chairman of the 14th Finance Commission?

Former Reserve Bank of India (RBI) Governor Y.V. Reddy served as the chair of the 14th Finance Commission. The fourteenth Finance Commission was established on January 2, 2013. The 14th Finance Commission's recommendations became effective in April 2015.

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