The 15th Finance Commission held a two-day meeting with eminent economists, top executives of leading banks at RBI headquarters in Mumbai.

Addressing the media today Chairman of Finance Commission Mr N.K. Singh said that last two days meeting with top economists, Panel of experts from RBI and bankers, the Finance commission explored issues pertaining to state leadership, development, better governance and its connection with the market mechanism.

Mr Singh said the experts also discussed on the future of Centrally Sponsored Schemes-CSSs and attempts by which rationalization and simplification were done in the past and overall situation at present.

He said that the obligation for the recapitalization of Prompt Corrective Actions of Public Sector Banks is upon the Central Government; hence the action would be taken only upon a Memorandum is submitted by the Union Government.

He also said that the panel expected that the Centre and states would conform to the targets stipulated in their respective Fiscal Responsibility and Budget Management Acts. He added that the experts unanimously agreed that the quality of the budget needs to improve.

Speaking about Direct and Indirect tax scenario post GST, the FC Chairman said that projections of direct taxes made by Department of Revenue suggested a healthy buoyancy in coming years, while that of indirect taxes it’s not so healthy. He stated that as per the inputs from the IT department, there is a significant rise in overall Tax Ratio.