Kerala Finance Commission

The state government has set up Kerala Finance Commission so that it can help in improving the financial condition of the various municipal bodies and Panchayati raj institutions in the state. Kerala Finance Commission has also been given many other responsibilities by the state government.

The establishment of Kerala Finance Commission:

The Finance Commission in Kerala has been established in the state according to the guidelines that have been laid down in the Constitution of India, Article 243 (I).

The state government of Kerala has also followed the rules that have been laid down in the Kerala Panchayat Raj Act, 1994, Section 186 while setting up Kerala Finance Commission. The Finance Commission in Kerala comprises of the chairman and two other members. The chairman of the Third Kerala Finance Commission is Shri. K.V.Rabindran Nair and the two other members are Shri. V.S. Senthil and Shri. P. Kamalkutty.

The grants allotted to Kerala Finance Commission:

Kerala Finance Commission has received grants from the Tenth Finance Commission, which came to 3.88% out of the total transfer of resources that has been made to all the states in India. The Finance Commission in Kerala received from the Eleventh Finance Commission a grant of around 2.83% out of the total resources that has been transferred to all the states in the country. The Twelfth Finance Commission has allotted Kerala Finance Commission a grant of 2.700% out of the total resources that has been transferred to all the states within India.

Kerala Finance Commission objectives:

  • To look over the economic condition of the various Panchayati raj institutions that are there within the state

  • To make efforts which will help in improving the financial condition of the various Panchayati raj institutions that are there within the state

  • To grant funds from the Consolidated Fund of the State to the various Panchayati raj institutions that are there in the state

  • To determine the amount of taxes, tolls, duties, and fees that may be charged by the various Panchayati raj institutions that are there in the state

  • To distribute between the state government and the various Panchayati raj institutions that are there in the state the total amount that comes from the taxes, fees, tolls, and duties that are charged by the state

  • To function as an arbiter between the central and the state government with regard to matters that are financial in nature

  • To transfer the funds that are granted by the central government to the state government


The sectors receiving funds from Kerala Finance Commission are:

  • Heath care sector
  • Infrastructure development
  • Primary education
  • Administration of prisons
  • Fiscal administration
  • Training in computers for children
  • Administration of police
  • Protection of heritage
  • Fire services
  • Public libraries
  • Administration of districts

The state government of Kerala must boost Kerala Finance Commission:

The Kerala state government must take such steps that give boost to Kerala Finance Commission. This will help in improving the financial condition of the various Panchayati raj institutions that are there within the state. It will also help in bringing in more funds from the center for the state.

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