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Governance

15th Finance Commission Recommendations: Different Sectors

  • 03 Feb 2021
  • 2 min read

Why in News

Recently, the 15th Finance Commission’s Report was tabled in the Parliament. The Report included recommendations for different sectors - Health, Defence and Internal Security and Disaster Risk Management, etc.

Key Points

  • Health:
    • Health spending by States should be increased to more than 8% of their budget by 2022.
    • Given the inter-State disparity in the availability of medical doctors, it is essential to constitute an All India Medical and Health Service as is envisaged under Section 2A of the All-India Services Act, 1951.
    • 15th FC also allocated funds for overhauling of medical services at all the levels and training of the allied healthcare workforce.
  • Defence and Internal Security:
    • The Union Government may constitute in the Public Account of India, a dedicated non-lapsable fund, Modernisation Fund for Defence and Internal Security (MFDIS).
  • Disaster Risk Management:
    • Formation of Mitigation Funds at both the national and State levels, in line with the provisions of the Disaster Management Act, 2005.
      • The Fund should be used for those local level and community-based interventions which reduce risks and promote environment-friendly settlements and livelihood practices.
    • Funding Priority Areas: 15th FC has also earmarked allocations for certain priority areas, such as :
      • Funds for the National Disaster Response Force for expansion and modernisation of fire services and resettlement of displaced people affected by erosion.
      • Funds for National Disaster Mitigation Fund (NDMF) for catalytic assistance to twelve most drought-prone states, managing seismic and landslide risks in ten hill States, reducing the risk of urban flooding in seven most populous cities and mitigation measures to prevent erosion.

Source: PIB

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