The proposal of extension of time period by two (2) months for submission of report by the Fourteenth Finance Commission has been considered and approved by the Cabinet on 29th October, 2014. Accordingly, the President of India, on 31st October, 2014 has issued order for extension of time for the Fourteenth Finance Commission by two (2) months up to 31st December, 2014.

Earlier, the Commission had sought extension of time of two (2) months for submission of its Report up to 31st December, 2014 to examine financial projections, carry out consultations with the Government of Andhra Pradesh and Telangana in view of additional term of reference made to the Commission on 2nd June, 2014 to make recommendations for the successor States on reorganization of the State of Andhra Pradesh in accordance with the Andhra Pradesh Reorganisation Act, 2014.

The Fourteenth Finance Commission has been constituted by the President of India on 1st January, 2013 in pursuance of clause (1) of article 280 of the Constitution and Finance Commission (Miscellaneous Provisions) Act, 1951. The Commission was to submit its Report on the basis of its terms of reference by 31st October, 2014 covering a period of five years from 1st April, 2015 to 31st March 2020.

Extension of Finance Commission term enables additional consultations and financial projections before final report submission. Extension of the Fourteenth Finance Commission's term was approved to permit additional time for completion of its report and associated consultations. The extension was sought to enable the Commission to review financial projections and carry out consultations required by an additional term of reference concerning the reorganisation of a State and recommendations for its successor States.