7th State Finance Commission constituted
The Haryana Government has constituted the Seventh State Finance Commission to examine and recommend the distribution of financial resources between the state government and local self-governing bodies.
A notification to this effect was issued here today by Chief Secretary Anurag Rastogi.
As per an official notification, former Chief Secretary, Sanjeev Kaushal, has been appointed Chairman of the commission. Anshaj Singh, IAS officer, will serve as the Member Secretary.
The purpose of the commission is to make recommendations on key fiscal matters concerning Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs), thereby improving decentralised governance and financial autonomy at the grassroots level.
The commission’s mandate includes recommending principles for the distribution of net proceeds of taxes, duties, tolls, and fees levied by the state between the government and the PRIs—namely, zila parishads, panchayat samitis, and gram panchayats. It will also advise on the taxes and fees that may be assigned to or appropriated by these rural local bodies, along with grants-in-aid to them from the Consolidated Fund of the State. Furthermore, the commission will suggest measures to strengthen the financial health and revenue-generating capacity of PRIs.
Similarly, the commission will make recommendations regarding the ULBs. These include the distribution of state tax proceeds between the government and municipalities, the taxes that may be assigned to municipalities, the structure of grants-in-aid to them, and the steps needed to bolster their financial sustainability.
While formulating its recommendations, the commission is required to take into account several important considerations to ensure fiscal responsibility and equity.
These include the need to maintain a balance between the state’s receipts and expenditures and to generate sufficient surplus for capital investments.
The commission must also assess the overall resource availability of the government and the various demands on those resources, particularly expenditure related to civic administration, maintenance and upkeep of public infrastructure, recurring costs of plan schemes, and other committed financial liabilities.
Additionally, the financial requirements, resource-raising potential, and scope for expenditure rationalisation of the PRIs and municipalities will be evaluated to strengthen their fiscal autonomy and efficiency.
The commission has been directed to submit its final report by March 31, 2026. It will cover a five-year fiscal period, from 2026-27 to 2030-31, and its recommendations will play a critical role in shaping local governance finances during this time frame.
Kaushal, who retired on July 31, 2024, was appointed Chairman of Haryana Power Generation Corporation Limited.
Key fiscal matters
The purpose of the commission is to make recommendations on key fiscal matters concerning Panchayati Raj Institutions and Urban Local Bodies, thereby improving decentralised governance and financial autonomy at the grassroots level.
Haryana Tribune