In order to help state governments conduct effective fiscal planning,a panel set up by the Thirteenth Finance Commission (TFC) has proposed constituting a centralised database of state and Central government employees and pensioners by March 2013. Absence of such a database today deters states to undertake sound fiscal planning,estimate the impact of Pay Commissions and plan development expenditure.
Such a database will streamline information collection,analysis and recommendations of future Finance Commissions. It will also make comparison across states in terms of their FRBM obligations more effective. The panel suggested creation of a Database Creation Facility Grant of Rs 300 crore. The final report is available for public comments on the website of the TFC.