The Finance Commission has to submit its report next month. Will it cut the devolution formula or leave it the same? What growth and tax collections are they factoring in?
Speaking to CNBC-TV18, NK Singh, Chairman of the 15th Finance Commission said that lower the growth, the higher will be the rebound. Singh also said that there is no luxury to assume a stable rate of growth for the next 5 years. However, according to Singh, experts differ on the extent of the rebound next year.
Not just growth, but revenue buoyancy also is a problem, said Singh. He added that some members of the Economic Advisory Council (EAC) feel there will be double-digit contraction in growth this year. However, the Chief Economic Advisor thinks growth contraction will be less than double-digits, he said.