New Delhi [India], June 26 (ANI): The 15th Finance Commission had virtual meetings with its advisory council on Friday and a day earlier to discuss adverse implications of constraints in the economy on tax revenue collections of the Central and state governments.
While noting that tax collections can be considerably affected by the COVID-19 pandemic, some members said the impact on tax collections may also be asymmetric.
Implications on the deficits and debt of the government were also discussed along with constraints and possibilities for establishing a path for consolidation of public debt.
On the expenditure side, the Centre and state governments will have substantial expenditure burden on account of health, support to poor and other economic agents.
The members said there is massive uncertainty going forward and appreciated the challenges for Commission in designing fiscal transfers for the five-year period.
The Commission along with the advisory council will be closely monitoring emerging indications on the economic and fiscal front as they become available in order to make the best possible assessment, according to an official statement. (ANI)