New Delhi: The Union Cabinet has approved constitution of the 14th Finance Commission to suggest formula for sharing of tax proceeds between Centre and states.
The government has cleared setting up of 14th Finance Commission, a senior minister said after meeting of the Cabinet here.
Former Reserve Bank Governor Y V Reddy is tipped to be 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.
First Published: Thursday, October 18, 2012, 19:57