Karnataka govt forms fifth State Finance Commission

 The Karnataka government has constituted the fifth State Finance Commission, which has been tasked with coming out with recommendations on the division and allocation of resources after reviewing the financial position of Urban Local Bodies (ULBs) and Panchayat Raj institutions.

Headed by former MP C Narayanaswamy, the panel will have retired IAS officer Mohamed Sanaulla and retired Controller in the State Accounts Department R S Phonde as members.

The commission will review the financial position of the zilla panchayats, taluk panchayats, gram panchayats, municipal corporations, city municipal councils, town municipal councils and town panchayats, a government order said.

It will make recommendations to determine the principles, which should govern the distribution between the state government and various ULBs and panchayats of the net proceeds of the taxes, duties, tolls and fees leviable by the government, which may be divided and allocated between them to their respective shares of such proceeds.

It will also determine the taxes, duties, tolls and fees which may be assigned to, or appropriated by the ULBs and panchayats.

The panel will look into the Grant-in-aid given to the these bodies from the consolidated fund of the state and the measures needed to improve their financial position, examine and give suggestions on the extent to which and the manner in which the resources available to the local bodies could best be utilised for meeting the expenditure of these bodies.

It will make a detailed analysis on repayment of loans and advances extended by the government from time to time to the local bodies to make suitable recommendation for repayment of government dues and the possibility of adjusting these dues against future devolution of revenues from government to these bodies.

"In making its recommendations the Commission shall have regard to the resources of the State Government and the demands thereon on account of expenditure of civil administration, debt servicing, development and other committed expenditure," the order said.

The Commission will have to furnish its report by February 28, 2024.