Jharkhand Finance Commission

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Jharkhand Finance Commission was established so that it can improve the economic condition of the various Panchayati raj institutions in the state. The Finance Commission in Jharkhand also has various other functions the fulfillment of which would lead to the development of the state.

The establishment of Jharkhand Finance Commission:

Jharkhand Finance Commission has been established in the state according to the guidelines that have been laid down in the Indian Constitution, Article 243 (I).

According to this article, the governor shall set up the Finance Commission in the state from the start of the Constitution of India, seventy- third Amendment Act, 1992 and after that at the end of every fifth year.

Jharkhand Finance Commission objectives are:
  • To function as an arbiter between the governments of the center and the state with regard to financial matters
  • To transfer the funds that are granted by the center to the state government
  • To review the economic condition of the various Panchayati raj institutions
  • To grant funds from the Consolidated Fund of the State to the various Panchayati raj institutions in the state
  • To determine the tolls, fees, taxes, and duties that may be levied by the various Panchayati raj institutions
  • To distribute between the state government and the various Panchayati raj institutions the total proceeds that come from the taxes, duties, fees, and tolls that are charged by the state
  • To take steps that lead to improvement of the economic condition of the various Panchayati raj institutions in the state

The grants received by Jharkhand Finance Commission:

Jharkhand Finance Commission will receive from the Twelfth Finance Commission grant of around 3.405% out of the total resources that have been transferred to all the states of India. The Finance Commission of Jharkhand will receive this grant from the year 2005 to 2010.

The sectors that are granted funds from Jharkhand Finance Commission are:
  • Development of the Infrastructure
  • Primary education
  • Heritage protection
  • Fire services
  • Prisons administration
  • Police administration
  • Public libraries
  • District administration
  • Computer training for school children
  • Fiscal administration
  • Health services

The state government of Jharkhand must encourage Jharkhand Finance Commission:

Jharkhand Finance Commission must be encouraged by the state government for this will lead to more funds coming into the state from the center. Also this will help in improving the financial condition of the various Panchayati raj institutions in the state. These will lead to the all round development of the state.

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