Govt approves constitution of 14th Finance Commission

, Oct 18: The Union

has approved constitution of the 14th

to suggest a 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 YV 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 a five-year period beginning Apr 1, 2015. The 13th Finance Commission was headed by former Finance Secretary Vijay Kelkar.

PTI