New Delhi: Government today (June 15, 2004) extended the term of Twelfth Finance Commission by five months till December 31 this year.

This was decided at the meeting of the Union Cabinet, chaired by Prime Minister Manmohan Singh.

The Commission, headed by C Rangarajan, was scheduled to submit its report by July 31 but could not complete it due to the General Elections, an official spokesperson told reporters after the meeting.

"The Commission could visit only 16 States by the end of February this year. The visits to the remaining 12 States had to be postponed due to the elections," she said.

The extension of the term would enable the Commission to visit the remaining States, firm up the base year figures for 2004-05 which would form the basis for projections on the sharing of funds between Centre and States.