More allocation should be ensured for LSG institutions: Finance Commission submits report
THIRUVANANTHAPURAM: The Seventh State Finance Commission has recommended that more allocation be ensured to local bodies in the new financial year starting in April. The current allocation is 28%. The report for one year was submitted to Governor RV Arlekar by the Commission Chairman Prof. KN Harilal.
The report will be forwarded to the government by the Governor for further action. The commission usually submits recommendations for five years. However, a report for only one year was prepared since the Union Finance Commission report was not available. The report for the remaining four years will be submitted after the Union Finance Commission receives the recommendations and allocation.
The 7th Commission was appointed in September 2024. The term is two years. The function held at Lok Bhavan was attended by Finance Commission member and Finance Secretary KR Jyotilal, Finance Commission Secretary P Anil Prasad and Advisor Prof Harikurup KK.
Resource allocation should be changed
- The Commission recommends that while continuing the existing methods of financial allocation, appropriate changes should be made in resource allocation taking into account the major changes taking place in the economy
- The share to be transferred to the local bodies from the annual plan of the state and tax revenue should be decided on the basis of the Commission recommendations
"The report was submitted taking into account the status of LSG institutions, additional responsibilities given, changed social conditions and growth potentials"
- Prof. K.N. Harilal, Chairman, State Finance Commission