This could indicate that the 15th Finance Commission will provide an interim report before the Budget for 2020-21, and the final report could be submitted at a later date.
The 15th Finance Commission's term might be extended by six months due to the uncertainty of resource allocation to newly formed union territories of Jammu and Kashmir (J&K) and Ladakh, the Business Standard reported.
This could indicate that the 15th FC will provide an interim report before the Budget for 2020-21, and the final report could be submitted at a later date. The interim report will give the Centre assistance in preparing the Budget.
Moneycontrol could not independently verify the story.
This possible extension would be the second one, since the deadline to submit the report has already been extended to November 30 from October 31. This extension was given to explore the option of a separate funding mechanism for defence and internal security.
The FC and government discussed resource distribution, the treatment of J&K as compared to Delhi and Puducherry, and the peculiarity of Ladakh's large territory against its sparse population, the paper quoted a senior official say.
The Jammu and Kashmir Reorganisation Act mandated that the UT be treated as a state and paid out of the divisible tax pool. Ladakh will be considered as any other UT, receiving its funds from the Centre’s share.But this payment might be unfair to other UTs such as Delhi and Puducherry, who do not receive any portion of the divisible tax pool, officials told the publication.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.