N.K. Singh, the Chairman of the 15th Finance Commission, along with the other members, will hold a day-long meeting with the Economic Advisory Council of the commission on Friday.An official statement on Thursday said that the meeting is for a “final discussion on GDP growth, tax buoyancy of the Centre and the states, GST compensation, revenue deficit grant and fiscal consolidation”.
The members of the Economic Advisory Council who are likely to attend the meeting include Pinaki Chakraborty, Prachi Mishra, Omkar Goswami, Sajjid Z. Chenoy, Neelkanth Mishra, Rathin Roy, D.K. Srivastava, Arvind Virmani, M. Govinda Rao, Sudipto Mundle, Shankar Acharya, Pronab Sen and Krishnamurthy Subramanian.
The meeting comes at a time when India has recorded massive 23.9 per cent contraction in the GDP during the April-June quarter. The development has called for serious thought among the policy makers for the country's economic trajectory amid the pandemic.
The issue of tax buoyancy and GST compensation for states is also a burning issue currently as a tussle is underway between the Centre and several states over an alternate mechanism to help states get funds in the absence of compensation for the Centre.
The Centre has proposed two borrowing options for the states from the Reserve Bank of India which several states have not yet agreed upon.