New Delhi, Jan 18 (KNN) The Ministry of MSME has sought views from the industry associations on Terms of Reference of the Finance Commission under which it may consider proposing, measurable performance-based incentives for States, at the appropriate level of government under different areas.

The Finance Commission has asked the Ministry of MSME to send its views/ Memorandum to Commission latest by April 30, 2018.

The view have been sought for specific issues as per para-7 of notification (Terms of Reference).

According to the notification, “The Commission may consider proposing, measurable performance-based incentives for States, at the appropriate level of government, in following areas:

 (i) Efforts made by the States in expansion and deepening of tax net under GST;

(ii) Efforts and Progress made in moving towards replacement rate of population growth;

(iii) Achievements in implementation of flagship schemes of Government of India, disaster resilient infrastructure, sustainable development goals, and quality of expenditure;

(iv) Progress made in Increasing capital expenditure, eliminating losses of power sector, and improving the quality of such expenditure in generating future income streams;

(v) Progress made in increasing tax/non-tax revenues, promoting savings by adoption of Direct Benefit Transfers and Public Finance Management System, promoting digital economy and removing layers. between the government and the beneficiaries;

(vi) Progress made in promoting ease of doing business by effecting related policy and regulatory changes and promoting labour intensive growth; (vii) Provision of grants in aid to local bodies for basic services, including quality human resources, and implementation of performance grant system in improving delivery of services;

(viii) Control or lack of it in incurring expenditure on populist measures; and

(ix) Progress made in sanitation, solid waste management and bringing in behavioural change to end open defecation.”

The Finance Commission is required to submit its report by the end of October, 2019. The Ministry of MSME will conduct a meeting with the associations and the concerned officers thereafter. (KNN Bureau)