An Advisory Council consisting of five members constituted by the Sixteenth Finance Commission to advise the Commission on any Terms of Reference (ToR) or related matters.
Poonam Gupta, Director General of the National Council of Applied Economic Research, has been appointed the convener of the Advisory Council.
Other members include economists D.K. Srivastava, Neelkanth Mishra, Pranjul Bhandari and Rahul Bajoria.
The role and functions of the Advisory Council will include assisting the Commission in preparing papers or research studies and monitoring or evaluating studies ordered by the Finance Commission.
This will enhance the Commission’s understanding of the issues involved in its rules of engagement.
Among the Terms of Reference (ToR) approved by the Cabinet are distribution of the net proceeds of taxes between the Union and states under Chapter I, Part XII of the Constitution and the allocation of the respective shares of such proceeds between states.
Another ToR relates to the principles governing grants-in-aid for States’ revenues from the Consolidated Fund of India and the amounts to be paid to the States as grants-in-aid for their revenues.
