Previous Year Question
Who among the following was the Chairman of 14th Finance Commission?
Shanta Kumar
C. Rangarajan
Y. V. Reddy
None of the above
Correct Answer: C
Detailed Solution
Dr. Y. V. Reddy was the Chairman of the Fourteenth Finance Commission. He had earlier also served as the Governor of the Reserve Bank of India. The official composition of the Fourteenth Finance Commission records him as its Chairman.
The Fourteenth Finance Commission was constituted by the President on 2 January 2013 under Article 280 of the Constitution. It submitted its report on 15 December 2014, and its recommendations covered the period from 1 April 2015 to 31 March 2020.
One of its most important recommendations was to increase the States’ share in the divisible pool of Union taxes from 32% to 42%. The Government of India accepted this recommendation, representing a major increase in tax devolution to the States.
A major constitutional function of the Finance Commission is to recommend the distribution of the net proceeds of taxes between the Union and the States, as well as the allocation of the States’ share among them.