RECOMMENDATION OF 15TH FINANCE COMMISSION

• 15th Finance Commission (FC-XV), chaired by N.K. Singh, constituted under Article 280 of the Constitution; submitted two reports — an interim report for 2020-21 and a final report for 2021-26 tabled in Parliament on 1 February 2021.
• Determines vertical (Centre-State) and horizontal (inter-se State) sharing of the divisible tax pool, plus grants-in-aid to States and Local Bodies. Core subject for GS-II (Federalism, Constitutional Bodies) and GS-III (Fiscal Policy).
• A recent PIB (17 Mar 2026) release reiterated FC-XV's allocations for Rural Local Bodies — ₹60,750 cr (2020-21) + ₹2,36,805 cr (2021-26).