State Finance Commission is constituted under clause (1) of Article 243-I of the Constitution of India and section 186 of the Kerala Panchayat Raj Act, 1994(13 of 1994), read with clause (1) of Article 243-Y of the Constitution of India and section 205 of the Kerala Muncipality Act, 1994 (20 of 1994). The Commission has the mandate review the financial position of the Panchayats and Muncipalities and make recommendations as to-
The Principles which should govern:
- The distribution between the State, Panchayats and Muncipalities of the net proceeds of the taxes, duties, tolls and fees leviable by the State, which may be divided between them under Part IX and Part IX-A of the Constitution and the allocation between the Panchayats at all levels and the Muncipalities of their respective shares of such proceeds.
- The determination of the taxes, duties, tolls and fees which may be assigned to or appropriated by the Panchayats and the Muncipalities.
- The grants-in-aid to the panchayats and the Muncipalities from the Consolidated Fund of the State.
In order to follow up implementation of recommendations of the State Finance Commission, a permanent SFC Cell has been set up in Finance Department. The SFC Cell is entrusted with the following functions and duties:
- Placing of Report of the State Finance Commission before the Council of Ministers, preparation of Action Taken Report thereon and placing the Report and Action Taken Report before the State Legislature.
- Prepare details about assessed tax, collection made and arrears, in respect of each tax and non-tax revenue, for each level of LGs.
- Analyse Data collected for identifying broad trends among LGs and for identifying champions and innovations. Compile such good practices.
- Undertake a campaign to overcome the large slack in revenue collection.
- Prepare a compendium of the relevant legal provisions and executive orders in respect of the administration of taxes by LGs, incentivisation programmes, innovations, recommendations of the SFC etc.
- Rationalise the number and type of Taxes, and assign atleast a few important taxes to each level of LGs.
| Name | Designation | Phone Number |
|---|---|---|
| Sri. V.P.Joy | Principal Secretary(Finance) | 0471-2327586,2518292 |
| Sri. M.Girees Kumar | OSD(F.R) | 0471-2331161, 2518058 |
| Sri. Jojith Mathew | Additional Secretary | 0471- 2337340, 2518911 |
| Office of the SFC-Cell | 0471-2518314, 2518909, 2517039 |