Das said there is a need to ensure consistencies between finance commissions so that there is some certainty in the flow of funds to states.
As fiscal federalism gathers momentum in the era of uniform goods and services tax (GST), Reserve Bank of India (RBI) governor Shaktikanta Das has given a call for a permanent status to Finance Commission and a robust expenditure planning without compromising on fiscal consolidation, a report in ET online said.
Das is also a member of the 15th finance commission.
There is a need to ensure consistencies between finance commissions so that there is some certainty in the flow of funds to states, media reports quoted the RBI governor as saying.
"This has become even more critical in the post GST scenario. In other words, there has to be continuity and change between finance commissions. Increasingly, therefore, it is felt that there is a need to give permanent status to the finance commission. The commission can function as a leaner entity in the intervening period till the next finance commission is set up in a full-fledged manner. During the intervening period, it can also address issues arising from implementation of the recommendations of the finance commission," Das said in his first speech as RBI governor.
Das was introducing former RBI governor YV Reddy's co-authored book called ‘Indian Fiscal Federalism’, the report said.