Fifteenth Finance Commission XV Volume-II Annexes October 2020 Fifteenth Finance Commission ANNEXES Pages Chapter 1: Introduction Annex 1.1: Notification Regarding Constitution of 1 the Commission Annex 1.2: Notification Regarding Corrigendum in ToR 5 Annex 1.3: Notification Regarding Appointment as Member 6 Ministry in place of Part time Member of Finance (Department Annex 1.4: Notification Regarding Resignation of Member 7 of Economic from Commission Affairs) Annex 1.5: Notification Regarding Appointment of Member 8 in Commission Annex 1.6: Notification Regarding Addition/Amendment 9 in ToR Annex 1.7: Notification Regarding Addition/Amendment 11 in ToR Annex 1.8: ToR- wise Mapping of the Chapters of 13 FC-XV Report Annex 1.9: List of Sanctioned Posts 16 Annex 1.10: List of Functionaries 17 Annex 1.11: Letter from Ministry of Finance regarding 19 Delegation of Powers of Head of 'Department' to Shri Arvind Mehta, OSD to the Fifteenth Finance Commission Annex 1.12: Rules of Procedure 21 Annex 1.13: Public Notice inviting suggestion on ToR 24 Annex 1.14: Public Notice inviting suggestion on Additional ToR 27 Annex 1.15: Constitution of the Advisory Council to 28 the Commission Annex 1.16: Constitution of the High Level Group on 35 Health Sector Annex 1.17: Constitution of the Cash Credit Limit Committee 37 to review CCL Gap of Punjab i Fifteenth Finance Commission Pages Annex 1.18: Constitution of the Group to Examine the issues on 39 Defence and Internal Security Annex 1.19: Constitution of the High Level Expert Group 40 on Agriculture Exports Annex 1.20: Constitution of a Committee to review Fiscal 42 Consolidation Roadmap of the General Government Annex 1.21: Studies Commissioned on "Evaluation 44 of State Finances" Annex 1.22: List of other Studies Commissioned 45 Annex 1.22(A): List of PPT Presentations and Studies 47 by Multilateral and other Organisations Annex 1.23: Finance Commission’s Meetings (FC-XV) 51 Annex 1.24: List of Chairman's Meetings with Eminent 54 Personalities/Organisations Annex 1.25(A): List of Meetings of the Commission with 56 Hon'ble President, Vice President, Prime Minister and Finance Minister Annex 1.25(B): List of Meetings of the Commission with 57 Individuals/Organisations Annex 1.26: Meetings held with Ministries/Departments of 59 Union Government Annex 1.27: Meetings with Economist, Domain Experts, 64 International and Other Organisations Annex 1.28: Meetings held with the Accountants General 66 of States Annex 1.29: List of Meetings with Nodal officers of States 68 Annex 1.30: Itinerary of FC- XV Visits to States 69 Annex 1.31: List of the Meetings with Institutions/Organisations 70 which have been assigned studies by FC-XV Annex 1.32: List of the Meetings of the Advisory Council 72 of the Commission ii Pages Annex 1.33: List of the Meetings with High Level Group 72 on Health Sector Annex 1.34: List of the Meetings of the Cash Credit Limit 72 Committee to review CCL Gap of Punjab Annex 1.35: List of the Meetings of the Group Constituted to 73 examine the issues on Defence and Internal Security Annex 1.36: List of the Meetings of the High Level Expert 73 Group on Agriculture Exports Annex 1.37: List of the Meetings of the Fiscal Consolidation 73 Roadmap Committee Annex 1.38: List of Participants of Meetings with Nodal 74 Officers of States (A to D) Annex 1.39: List of Participants of Meetings with State 79 Governments Annex 1.40: Explanatory Memorandum, Report of FC-XV 228 for Financial Year 2020-21 Chapter 3: Setting the Context: Analysis of the Past Annex 3.1: Revenue Deficit of States 233 Annex 3.2: Gross Fiscal Deficit of States 234 Annex 3.3: Outstanding Debt and Liabilities of States 235 Annex 3.4: Own Tax Revenues of States 236 Annex 3.5: Own Non-Tax Revenues of States 237 Annex 3.6: Total Transfers from Union 238 (Tax Devolution & Grants) to the States Annex 3.7: Revenue Expenditure of the States 239 Annex 3.8: Capital Expenditure of the States 240 Annex 3.9: Per Capita Revenue Expenditure 241 Annex 3.10: Interest Payments 242 Annex 3.11: Per Capita Capital Expenditure 243 Annex 3.12: Per Capita Total Expenditure 244 Chapter 4: Pandemic Times: Analysis for the Future 2021-26 Annex 4.1: Assessment of Union Government Finances for 245 the Award Period of the FC-XV iii Fifteenth Finance Commission Pages Annex 4.2: Assessment of Union Government Finances 247 for the Award Period of the FC-XV (% of GDP) Annex 4.3: Transfers Recommended by the FC-XV 249 Annex 4.4: Aggregate Transfers as a Percentage of Gross 250 Tax Revenue, Revenue Receipts and GDP Annex 4.5: Normatively Assessed Annual Growth Rate 251 of Comparable GSDP Annex 4.6: Projected Tax to GSDP Ratio 252 Annex 4.7: Projected Non Tax Revenue to GSDP Ratio 253 Annex 4.8: Indicative estimates of GST Compensation 254 Annex 4.9: Assessed Own Revenue Receipts and 255 Revenue Expenditure Chapter 5: Resource Mobilisation Annex 5.1: Need to Establish Consistency 265 Between Databases Annex 5.2: IT Return Data and National Accounts 266 —Some indications Annex 5.3: Indicative Estimates of House Tax Potential-2019 269 Chapter 6: Towards Cooperative Federalism: Balancing Equity and Efficiency Annex 6.1: Population and Demographic Performance 270 Annex 6.2: Area 271 Annex 6.3: Forest and Ecology 272 Annex 6.4: Income Distance 273 Annex 6.5: Tax Effort 274 Chapter 7: Empowering Local Governments Annex 7.1: Summary of Property Tax Provisions 275 as per State Acts Annex 7.2: Detailed Methodology for arriving at 278 the State Wise Grants Annex 7.3: Share of States based on Population and Area 280 Annex 7.4: Year-Wise Grants to Rural and Urban Local Bodies 281 iv Pages Annex 7.5: Year Wise Grants to Urban Local Bodies 282 Annex 7.6: Grants to Million Plus Urban Agglomeration 283 Annex 7.7: State Wise Cantonment Boards 286 Annex 7.8: Framework for Monitoring Air Quality Parameters 288 and Funding Annex 7.8 A: Elements of Air Quality Management 289 Annex 7.8 B: Parameters for assessing the Composite 290 Performance factor for 'D' Annex 7.9 : Service Level Benchmarks 292 Annex 7.10: Total Health Grants 295 Annex 7.10 A-I: Support for diagnostic infrastructure to 296 the primary healthcare facilities -Sub-Centres Annex 7.10 A-II: Support for diagnostic infrastructure to 297 the primary healthcare facilities – PHCs Annex 7.10 A-III: Support for diagnostic infrastructure to 298 the primary healthcare facilities – UPHCs Annex 7.10 B: Financial Requirement for establishing 299 Block Level Public Health Units Annex 7.10 C: Grants for Urban Health and 300 Wellness Centres (UHWCs) Annex 7.10 D: Grants for Building-less Sub-Centres, 301 PHCs, CHCs Annex 7.10 E: Conversion of Rural PHCs and 302 Sub-Centres (SCs) into Health and Wellness Centre Chapter 8: Disaster Risk Management Annex 8.1: Gist of Recommendations of Finance Commissions 304 on Disaster Management from FC-II onwards Annex 8.2: Indicative List of Mitigation Activities 306 under NDMF/SDMF Annex 8.3: Methodology for Determination of State Level 310 Allocations of Disaster Management v Fifteenth Finance Commission Annex 8.3A: Disaster Risk Index (DRI) for States 312 Annex 8.3B: Methodology for Determination of National 318 Level Allocations of Disaster Management Annex 8.4: Annual State-wise Allocation for Disaster 319 Management based on Area (15 per cent), Population (15 per cent), Average Expenditure (70 per cent), and Disaster Risk Index Method Annex 8.5: Union and State's Share in SDRMF (2021-26) 320 Chapter 9: Pandemic and Beyond: Building Resilience in Health Sector Annex 9.1: Health and Nutritional Indicators 321 Annex 9.2 Life Expectancy of Major States 322 Annex 9.3: Shortfall in Health Facilities as Per Estimation of 323 Mid-year Population (as on 1 July 2019) in Rural Areas Annex 9.4: Number of Doctors in India 324 Annex 9.5: Total Number of Nurses and Pharmacists in India 325 Annex 9.6: Shortfall in Human Resource in Government Health 326 Facilities (as per the memorandum received from MoHFW) Annex 9.7: Recommendations Received from 327 Various Stakeholders Annex 9.8: Grants for Critical Care Hospitals 332 Annex 9.9: Physical Targets and Grants for District Integrated 333 Public Health Laboratories Annex 9.10: Grants for Training of Allied Healthcare Workers 334 Annex 9.11: Grants for DNB Courses 335 Chapter 10: Performance-based Incentives and Grants Annex 10.1: A Subset of Performance Grading Index (PGI): 336 Indicators for Incentivising States on Basis of Education Annex 10.2: Grants for Higher Education 337 vi Pages Annex 10.3: Methodology for Estimating Performance-based 338 Reward Annex 10.4: Distribution of Agriculture Performance 340 Incentive Grant to States Annex 10.5: Grants for Maintenance of PMGSY Roads 341 Annex 10.6: Grants for Judiciary 342 Annex 10.7: Grants Proposed for Statistics - Details of Variable 343 and Fixed Components Annex 10.8: Grants for Statistics 344 Annex 10.9: Summary of State-specific Grants 345 Annex 10.10: Details of State-specific Grants 353 Chapter 12: Fiscal Consolidation Roadmap Annex 12.1: Indicative Debt Path of State Governments 380 (per cent of GSDP) Chapter 13: Fiscal Architecture for Twenty-First Century India: Fiscal Rules, Financial Management, and Institutions Annex 13.1: India's governance of public financial 381 management practices Annex 13.2: Selected Significant Gaps in the Existing Public 382 Financial Management Structure Annex 13.3: Recommendations of Previous Finance 383 Commissions on Fiscal Architecture vii Fifteenth Finance Commission viii Chapter 1 : Annex Annex 1.1 (para 1.11 and 1.12) THE GAZETTE OF INDIA: EXTRAORDINARY [Part II- Section 3- Sub-section(ii)] MINISTRY OF FINANCE (Department of Economic Affairs) NOTIFICATION New Delhi, the 27th November, 2017 S.O.