The Thirteenth Finance Commission on Friday, briefed Finance Minister Pranab Mukherjee on its recommendations on sharing tax receipts between the Centre and the States, which are likely to have some ramifications on the Budget to be presented next month.
“Today we briefed Finance Minister Pranab Mukherjee on the recommendation of the commission. From here, it would go to the Cabinet,” said an official after the meeting.
Earlier, the Finance Minister had said the Finance Commission’s recommendations would be reflected in the Budget, which is likely to be presented in Parliament on February 26.
ADVERTISEMENT
The Commission was represented by the Thirteenth Finance Commission Chairman Vijay Kelkar, Secretary Sumit Bose and member B.K. Chaturvedi, among others.
The Commission had submitted the report to the President on December 30, 2009.
“The report is likely to be tabled in the Budget session of Parliament,” the official added.
ADVERTISEMENT
The report assumes importance as the new indirect tax regime- GST-is scheduled to be implemented from the next fiscal and the new Direct Tax Code is likely to come into effect from 2011.
The Commission was appointed in November 2007, with the mandate to review the finances of the Union and the States, and sharing of net proceeds from taxes between the two.
The recommendations will cover the five-year period commencing from April 1, 2010.
In September, the Government had extended the term of the commission by three months up to January, 2010, but asked to submit report by December 30, 2009. It was earlier required to submit its report by October 31, 2009.