New Delhi, Nov 1 (IANS): The term of the 14th Finance Commission has been extended by two months, till Dec.31, 2014, an official statement said here Saturday.

"The proposal of extension of time period by two months for submission of report by the Fourteenth Finance Commission has been considered and approved by the Cabinet on Oct. 29, 2014. Accordingly, the President of India, on Oct.31, 2014 has issued order for extension of time for the Fourteenth Finance Commission by two months up to Dec.31, 2014," the statement said.

The commission had sought an extension of two months for submission of its report up to Dec.31, 2014 to examine financial projections and carry out consultations with the Andhra Pradesh and Telangana governments in view of the additional term of reference made to it June 2, 2014.

The 14th Finance Commission was constituted by the President on Jan.1, 2013 to submit its report on the basis of its terms of reference, by Oct.31, 2014 covering a period of five years from April 1, 2015 to March 31, 2020.