The Centre on Wednesday constituted the 14th Finance Commission, with former Reserve Bank of India governor YV Reddy as its head.
Finance Minister P. Chidambaram said the commission, which would make recommendations on sharing Union taxes, principles governing grants-in-aid to states and transfer of resources to local bodies, would submit its report by Oct 31.
Reddy was the governor of RBI from Sept 6, 2003, to Sept 5, 2008.
The report would be applicable for a five-year period starting April 1, 2015, Chidambaram said.
Former Finance Secretary Sushma Nath, National Institute of Public Finance Policy director M. Govind Rao and former acting chairman of the National Statistical Commission, Sudipto Mundle, will be full-time members while Planning Commission member Abhijit Sen will be its part-time member.
Ajay Narayan Jha has been appointed secretary to the commission, Chidambaram also added.
(Edited by Sanghamitra Mandal)
