Former Reserve Bank of India governor Y.V. Reddy will be the chairman of 14th Finance Commission, Finance Minister P. Chidambaram said today.
The Finance Commission has been asked to submit its report by October 31, 2014.
Abhijit Sen, Sushma Nath and M. Govinda Rao will be the other members of the commission.
Finance Commission, a constitutional body, is set up every five years.
Besides other things, the commission lays down principles governing the grants-in-aid to states and other local bodies for a five-year period beginning April 1, 2014.
Prior to joining the Reserve Bank as its governor in September 2003, Reddy was India's executive director on the board of the International Monetary Fund.
The 13th Finance Commission was headed by former finance secretary Vijay Kelkar.