The 12th Finance Commission report on sharing of funds between Centre and states, scheduled for submission by July end, is likely to be delayed due to the elections, C Rangarajan, chairman of the commission, said on Friday.
The commission was mandated to submit the report on devolution of funds to states from central pool of resources during 2005-10, by July end this year.
"In view of the elections, it may take a little more time," Rangarajan said after a 90-minute meeting with Planning Commission Deputy Chairman K C Pant.
Although the finance panel chairman described the talks as "usual meeting" and a "courtesy call", sources said the two commissions are understood to have discussed various ways to improve the financial health of states and the steps required to raise the Tax:GDP ratio of the country.
Pant, who was chairman of the 10th Finance Commission, said the 12th Finance Commission has to look into the entire area of central transfers and financial position of states and the Centre.
"It is for them to take expenditure and revenues of states into account," he said.
The finance panel will also look into the debt situation, he added.
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