Himachal Pradesh Finance Commission

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Himachal Pradesh Finance Commission has been established so that it can improve the financial condition of the various Panchayati raj institutions in the state. The Finance Commission in Himachal Pradesh has various other functions which if fulfilled would lead to the development of the state.

The establishment of Himachal Pradesh Finance Commission:

Himachal Pradesh Finance Commission has been set up in the state according to the rules that have been laid down in the Constitution of India,
Article 243 (I).

According to this article, the governor of the state shall set up the Finance Commission within the period of one year that starts from the Constitution seventy- third Amendment Act, 1992 and after that at the end of every five years. Himachal Pradesh Finance Commission comprises of the chairman, two deputy directors, and one member secretary. The present chairman of the Finance Commission of Himachal Pradesh is Mr. Kuldeep Pathania.

The various objectives of Himachal Pradesh Finance Commission are:
  • To review the economic condition of the various Panchayati raj institutions in the state
  • To take such steps that improve the financial condition of the various Panchayati raj institutions in the state
  • To determine the taxes, tolls, fees, and duties that may be charged by the various Panchayati raj institutions in the state
  • To allot the various Panchayati raj institutions in the state funds for the Consolidated Fund of the State
  • To distribute between the state government and the various Panchayati raj institutions in the state the total proceeds of taxes, duties, fees, and tolls that are levied by the state
  • To function as an arbiter between the state and central governments with regard to financial matters
  • To transfer the grants that are alloted by the central government for the state

Himachal Pradesh Finance Commission offers grants to various sectors that are:
  • Primary education
  • Infrastructure development
  • Health services
  • Fire services
  • Fiscal administration
  • Prisons administration
  • Heritage protection
  • District administration
  • Police administration
  • Public libraries
  • Computer training for school children

The grants received by Himachal Pradesh Finance Commission:

The Eleventh Finance Commission sanctioned, the Finance Commission in Himachal Pradesh a grant of around ` 26.26 crore between 2000- 2002. The Twelfth Finance Commission has alloted Himachal Pradesh Finance Commission the share of 0.529% out of the total resources that have been transferred to all the states in India. This grant has been allotted for the time period from the year 2005 to 2010.

The state government must encourage Himachal Pradesh Finance Commission:

The state government of Himachal Pradesh must encourage Himachal Pradesh Finance Commission. This will help in improving the economic condition of the Panchayati raj institutions in the state. It will also help in bringing more funds from the center for the state government. All these measures will bring about the all round development of the state.

For further information on State Finance Commissions, please refer to the following sites