Difference Between Finance Commission And Planning Commission Of India
3/26/2015
Difference between Finance Commission and Planning Commission of India
Difference between Finance Commission and Planning Commission of India by Puja Mondal Difference
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Difference between Finance Commission and Planning Commission of India!
There has been serious debate in the country regarding the role of the Finance Commission visavis the Planning Commission. Finance Commission is a
Constitutional body whereas the Planning Commission is a nonstatutory institution.
Over a period of time, the working of both the institutions led to friction among them due to lack of clearcut guidelines demarcating their areas of work.
Scrutiny of plan expenditure and transfer of capital to the states have been left to the Planning Commission.
This has led to a number of practical problems. The relative roles of the Planning Commission and Finance Commission have come to be demarcated in the terms of reference of the Finance Commission. The Finance Commission assesses the nonplan requirements of the State Governments and recommends a share in the net yield from the Central and Grantsinaid. The divisible sum of Central taxes is distributed inter se among the states based on independent criteria.
This lead to a situation where many states experience nonplan revenue surplus after receiving the devolution and that surplus is supposed to be used by them for plan purpose. But that is not the job of the Finance Commission. It is left to the planning Commission to take it into account while assessing the states resources for state plans.
The Planning Commission finds it very difficult to fill the shortfall in the states financial resources for plan purpose because of the limited budgetary support provided by the Central Government for the total public sector plan. Consequently, the plan expenditure becomes a casualty.
Difference between Finance Commission and Planning Commission of India
Difference between Finance Commission and Planning Commission of India by Puja Mondal Difference
Get cricket scores fast No need to scroll through results. Get instant answers from Google.
Difference between Finance Commission and Planning Commission of India!
There has been serious debate in the country regarding the role of the Finance Commission visavis the Planning Commission. Finance Commission is a
Constitutional body whereas the Planning Commission is a nonstatutory institution.
Over a period of time, the working of both the institutions led to friction among them due to lack of clearcut guidelines demarcating their areas of work.
Scrutiny of plan expenditure and transfer of capital to the states have been left to the Planning Commission.
This has led to a number of practical problems. The relative roles of the Planning Commission and Finance Commission have come to be demarcated in the terms of reference of the Finance Commission. The Finance Commission assesses the nonplan requirements of the State Governments and recommends a share in the net yield from the Central and Grantsinaid. The divisible sum of Central taxes is distributed inter se among the states based on independent criteria.
This lead to a situation where many states experience nonplan revenue surplus after receiving the devolution and that surplus is supposed to be used by them for plan purpose. But that is not the job of the Finance Commission. It is left to the planning Commission to take it into account while assessing the states resources for state plans.
The Planning Commission finds it very difficult to fill the shortfall in the states financial resources for plan purpose because of the limited budgetary support provided by the Central Government for the total public sector plan. Consequently, the plan expenditure becomes a casualty.