GDP numbers suggest high growth in the medium term: panel

  1. Finance Commission has held discussions with the finance ministry on fiscal and economic management of the country,
  2. During the meeting,15th Finance Commission has said that the GDP numbers suggests continued high growth over the medium term even though there have been fluctuations within the overall global trend.
  3. Gross domestic product(GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period.
  4. Further,discussions were also held on rationalisation of the Centrally Sponsored Schemes.Centrally sponsored schemes are schemes that are implemented by state governments but are funded by the Centre with some portion of funding being borne by states.
  5. The Commission also noted that the revenue projections on direct taxes are healthy though on indirect taxes there have been periodic fluctuations.
  6. The Finance Commission is constituted by the President under Article 280 of the Constitution mainly to give its recommendations on distribution of tax revenues between the Union and the States and amongst the States themselves.
  7. The Commission is appointed every five years.It consists of a Chairman and four other members.The Chairman of the 15th finance commission is chaired by N. K.Singh.Its recommendations will cover the five year period commencing from 1st April,2020.

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