The Centre has revoked the provisions of Article 370 which granted special status to Jammu and Kashmir.It has also proposed bifurcation of the state into two Union territories Jammu and Kashmir and Ladakh.
However,due to the change in status of J&K statehood,the Fifteenth Finance Commission will have to rework its calculations for distribution of central resources among different states.
The 15th Finance Commission(FC) would have to decide devolution for 28 states instead of 29 states now.The funds for Union territories are decided by the Central government in the Union Budget and voted by the Parliament.
The Finance Commission is constituted by the President under Article 280 of the Constitution.
The commission recommends how tax revenues collected by the Central government should be shared between the Centre and the states. Further,it also recommends inter se distribution of these resources among states.
The Commission is appointed every five years.It consists of a Chairman and four other members.The 15th finance commission chairman is N.K. Singh.Its recommendations will cover the five year period commencing from 1st April,2020.