Finance Commission and IT Experts meet to discuss promotion of digital economy

Discussions were also focused on digitization of Stamp Duty, other Digital Payments, the building of digital infrastructure, use of Artificial Intelligence for development and reduce the technology gap amongst States so as to make the process of digitization successful.

Para 7(v) of the Terms of Reference of the 15th Finance Commission states that "the Commission may consider proposing measurable performance-based incentives for States, at the appropriate level of government, in following areas promoting savings by adoption of Direct Benefit, Transfers and Public Finance Management System, promoting digital economy and removing layers between the government and the beneficiaries".

Keeping in mind the Commission had a detailed interaction with –

Mr Nandan Nilekani – former Chairman of Unique Identification Authority of India (UIDAI).

Mr Sanjay Jain – Eminent product management expert with experience in Google, Aadhaar, etc., former members of the RBI Committee on payments.

Dr Vivek Raghavan – Chief Product Manager and Biometric Architect at UIDAI, an eminent AI expert.

Mr Tanuj Bhojwani – Associate, ISPIRT, has experience on Digital Economy policy and also contributed to the international thinking on Digital Public Good.

Dr Promod Varma, Chief Architect of Aadhaar and many other national systems.

To gain insights into the possible areas of interventions, the Commission had a detailed discussion on –

To stimulate and promote IT growth ( for sector-specific grants, if considered).

To promote DBT.

To encourage Digital Economy, and

To implements effective Public Finance Management System.

The Commission discussed in detail the possibilities of extending the Direct Benefit Transfer Technology to Electricity subsidies and possibly Water subsidies as well. Discussions were also focused on digitization of Stamp Duty, other Digital Payments, the building of digital infrastructure, use of Artificial Intelligence for development and reduce the technology gap amongst States so as to make the process of digitization successful.

(With Inputs from PIB)