Report of the Fourteenth Finance Commission Volume II

Abstract

Volume II of the Report of the Fourteenth Finance Commission (FC-XIV) provides a comprehensive set of annexes detailing the administrative, financial, and consultative processes undertaken by the Commission in fulfilling its mandate for the period 2015–20. It includes notifications on the constitution, extension, and additions to the Terms of Reference, lists of sanctioned posts and functionaries, delegation of powers, rules of procedure, and records of meetings held with State Governments, Union Ministries, economists, policy experts, and academics. The volume documents the methodologies adopted for data collection, projections of Union and State finances, revenue and capital expenditure, tax devolution, grants to local bodies, disaster management funds, and grants-in-aid for States. Special attention was given to the bifurcation of Andhra Pradesh, allocation of resources to successor States, and assessment of public sector enterprises. State-wise fiscal indicators such as revenue deficits, fiscal deficits, outstanding debt, own tax and non-tax revenues, and total transfers from the Union are analyzed to support evidence-based recommendations. The annexes also include criteria suggested by States for revenue sharing, demographic and geographic data, forest cover, projected Gross State Domestic Product, and tax-GSDP ratios. This extensive documentation underpins the Commission’s recommendations aimed at equitable distribution of resources, fiscal sustainability, strengthening local governance, enhancing disaster preparedness, and promoting efficient public sector management.