Finance Commission to submit final report to President in Nov

The 15th Finance Commission, which decides the devolution of financial resources between the states and the Centre, is set to submit its final report for 2021-2022 to 20252026 to President Ram Nath Kovind on November 9, according to an official statement.

The commission will also present a copy of the report to Prime Minister Narendra Modi later next month.

The report will contain recommendations for next five years beginning 2021-22, and is likely to be tabled in Parliament along with an action taken report by the government on February 1 when finance minister Nirmala Sitharaman presents the Union Budget.

The Constitution, through Articles 280 to 281, provides for a unique mechanism in finance commissions for the division of taxes and revenues vertically — between the Centre and states, and horizontally— among all states, based on their levels of development, prosperity and regional needs.

The 15th Finance Commission’s report could be a landmark for its recommendations in the area of public health and may stress on health care given the Covid-19 pandemic. It may also recommend formation of a non-lapsable defence and internal security fund.

In an interview to Hindustan Times on July 8, chairman NK Singh said that the report is, for the first time, likely to devote an entire chapter on public health financing.

“The public sector has an inescapable obligation towards health.

The private sector alone cannot fulfil it. Of course, there will be public-private partnerships. Over the next five years, the Centre alone should be able to spend at least 2.1% of GDP on health. Let’s see,” Singh said in the interview.

He also said the new public health financing model for the country would include financial incentives and grants to states for a “couple of sectoral items”.

“Let’s say, if a state provides for X as public health infrastructure, then it will qualify for Y incentive.”

Health facilities have to be demand-driven, he added. In another interview on July 21, Singh talked of a “development matrix” which will bring the levels of social development, especially access to health-care and schooling, of states into the framework of how resources are distributed.

The finalised report was signed, apart from Singh, by members of the commission, Ajay Narayan Jha, Professor Anoop Singh, Ashok Lahiri, and Ramesh Chand.

THE 15TH FINANCE COMMISSION’S REPORT COULD BE A LANDMARK FOR ITS RECOMMENDATIONS IN THE AREA OF PUBLIC HEALTH AND MAY STRESS ON HEALTH CARE GIVEN THE COVID-19 PANDEMIC