The 15th Finance Commission would decide on the devolution of tax revenue between the Union and State governments.
The Finance Commission is set up every five years, typically about two years before the completion of the previous five-year period. However, the Centre has advanced the discussions this time keeping in mind a proposal to change the fiscal year cycle to January to December.
“Talks on setting up the Finance Panel are being initiated as the Budget has already been advanced and the fiscal year may also be changed. The Panel will need adequate time to finalise its recommendations,” an official was quoted as saying.
A formal proposal, including the members, is expected to be taken to the Union Cabinet for approval by October this year, he added.
The Narendra Modi government had kickstarted the process of establishing the next Commission by allocating ₹10 crore in the Union Budget 2017-18.