In compliance with Articles 243(I) and 243(Y) of the Constitution of India, and in accordance with the provisions of Section 168 of the Bihar Panchayati Raj Act, 2006 and Section 71 of the Bihar Municipal Act, 2007, the Governor of Bihar hereby constitutes the Seventh State Finance Commission, which shall consist of a Chairman and two members :
- Chairman : Shri Ashok Kumar Choudhary, I.A.S (Retd. – 1972 batch)
- Member: Shri Anil Kumar (Retired, B.A.S, Empanelment Code No. – 223/2011)
- Member: Dr. Kumudani Sinha (Retired Professor, Department of Economics, Patna University)
Objectives of the Commission
The Commission will review the financial position of Panchayats (Zila Parishads, Panchayat Samitis, and Gram Panchayats) and Urban Local Bodies (Municipal Corporations, Municipal Councils, and Nagar Panchayats), and will make its recommendations on the following matters:
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Principles that will regulate the following:
- The distribution of the net proceeds of such taxes, duties, tolls, and fees that may be levied by the State, between the State and Panchayats (Zila Parishads, Panchayat Samitis, and Gram Panchayats), as well as the distribution of such proceeds among the various levels of Panchayats and Municipal Bodies (Municipal Corporations, Municipal Councils, and Nagar Panchayats) of their respective shares.
- The determination of taxes, duties, tolls, and fees that may be assigned to or appropriated by the Panchayats and Municipal Bodies.
- Grants-in-aid to be provided to the Panchayats and Municipal Bodies from the Consolidated Fund of the State.
- Measures necessary to improve the financial position of Panchayats and Municipal Bodies.
- The Commission shall specify the basis of its conclusions and provide its assessment regarding the revenues and expenditures of Panchayats and Municipal Bodies.