Earlier, several Chief Minister, especially from Southern region, had expressed reservations about the proposed change in the base year. On several platforms, citing the reason of low funding, the concern stakeholders observed that with new base year policy, the progressive state might face the financial crunch due to declining populations.
Underlining the importance of urban and rural local bodies, Singh mentioned that empowering of such institutions would pave the way for India’s growth. He urged stakeholder to fine tune the existing ecosystem of local bodies.
During this interaction, Singh explained the role and functioning of the finance commission and briefed about the process of parameter selection and key issues like fund allocations to the state.
The Chairman of 15th Finance Commission is on 4-day Gujarat visit where, the commission will hold interactions with Chief Minister, government officials, leaders of various political outfits and representatives of trade and industry.