Union Cabinet has on Wednesday approved the setting up of the 15th Finance Commission. "The terms of Reference for the Commission will be notified in due course of time", announced Finance Minister Arun Jaitley.
Its recommendations will have to be in place before April 1, 2020, he said.
"Normally, it takes 2 years for Finance Commission to give its recommendations."
As per Article 280 of the Constitution, the Commission is required to make recommendations on the distribution of the net proceeds of taxes between the Centre and the states. The members of Finance Commission will be appointed soon.
Also, wage policy for the 8th Round of wage negotiations for workmen in Central Public Sector Enterprises announced.
Commenting on the tussle between the government and opposition over the upcoming session of Parliament, he said, "We are going to ensure that a regular winter section is held but we will make sure that the parliament session and election dates don't overlap."