Correct Option: D

The government, in January 2013, announced the constitution of the 14th Finance Commission under the chairmanship of former RBI Governor Y. V. Reddy. The five-member panel is to submit its report by October 31, 2014. Note : The Finance Commission is set up every five years to suggest principles governing the distribution of tax proceeds among the Centre, states and local bodies. The recommendations of the previous 14th Finance Commission (FFC), chaired by former Reserve Bank of India (RBI) governor Y.V. Reddy, are valid from 2015 to 2020. The recommendations of the 15th Finance Commission will be implemented for the period starting 1 April 2020 to 31 March 2025. The Narendra Modi government has kick started the process of constituting the 15th Finance Commission by allocating Rs10 crore in the 2017-18 budget.