CONSTITUTION AND POWER OF

STATE FINANCE COMMISSION

 finance commission
• Established according to the guidelines – Article 243(1) by the governor
• Chapter XVII sec. 186 of Kerala panjayath raj Act 1994
• look over the economic condition and to make efforts which will help in improving the financial condition
• (1) “commission” Finance Commission constituted by the Governor pursuant to clause (1) of article 243-I of
the Constitution.
• (2) members not exceeding three including the chairman
• (3)-(a) One shall be a person having special knowledge and experience in financial matters and economic
(b) The other two shall be persons having experience in public administration or local administration
. or having special knowledge in financial matters and accounts of the Government and local bodies.
• (12) staff of the Commission - to assist the Commission

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• Term of office (4)- hold office for such period may be specified in the order of the Governor
appointing him – eligible for reappointment
• Resignation (5)-writing under his hand and addressed to the Governor – continue till the resignation
is accepted - casual vacancies (6) , hold office for the remaining period for which the member or
chairman in whose place he was appointed would have held office.
• (7) The Commission shall meet at such time and place and shall observe such procedure in regard to
the transaction of business at it meeting as may be determined by the Commission

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 powers of finance commission
• have all the powers of the civil court under the Code of Civil Procedure, 1908 (Central Act 5 of 1908) – (8)
(a) summoning and enforcing the attendance of witness
(b) requiring the production of any document
(c) requisitioning any public record from any office
• powers to require any person to furnish information on such points and matters -may be useful for or relevant to,
any matter under the consideration of the commission. (9)

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• (10 )review the financial position of the Panchayats and submit recommendations to Governor
(a)
(i) the sharing among the Government and Panchayats of the net-income of the taxes,
duties, cess and fees -levied by the Government
(ii) fixing the taxes, duties, cess and fees which may be ear marked for the Panchayats
and may be expended by them;
(iii) the criteria regulating the financial aid -from the State Consolidated Fund;
(b) steps necessary for improving the financial position of the Panchayats
(c) matters which left to the commission by the Governor taking in to account of the interest of the
financial security of the Panchayats
• (11) Governor shall cause to be laid before the Assembly each recommendation submitted by the
Commission under sub-section (10) along with explanatory memorandum regarding the steps
taken on it.

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THANK YOU