New Delhi: The Union Cabinet is likely to approve constitution of the 14th Finance Commission on Thursday to suggest formula for devaluation of tax proceeds between Centre and states.
The item concerning constitution of the 14th Finance Commission is on the agenda of the Cabinet meeting scheduled for Thursday, sources said.
Former Reserve Bank Governor Y V Reddy is tipped to be the the chairman of the Finance Commission, a Constitutional body which is set up every five years.
Besides other things, the Commission lays down principles governing the grants-in-aid to states and other local bodies for five-year period beginning April 1, 2015.
The 13th Finance Commission was headed by former Finance Secretary Vijay Kelkar. Its recommendations will remain valid till March 2015.
First Published: Wednesday, October 17, 2012, 21:52