Madhya Pradesh Finance Commission

Madhya Pradesh Finance Commission has been set up in the state so that it can help in improving the financial condition of the various Panchayats that are there in the state and also that of the municipal bodies. The Finance Commission in Madhya Pradesh also has other functions that it fulfills.

The setting up of Madhya Pradesh Finance Commission:

Madhya Pradesh Finance Commission has been set up in the state as a quasi- judicial independent body.

The Finance Commission in Madhya Pradesh has been established according to the rules that have been laid down in the Indian Constitution, Article 243 (I). The governor has set up the Madhya Pradesh Finance Commission in the state of Madhya Pradesh after every five years. The Finance Commission in Madhya Pradesh consists of the chairman, one member secretary, and two other members.


Madhya Pradesh Finance Commission objectives:

• To look over the financial position of the various local bodies such as Panchayats and municipal bodies in the state


• To take such measures that lead to the improvement of the economic condition of the various Panchayats and municipal bodies in the state


• To determine the taxes, fees, tolls, and duties that may be charged by the urban and rural local bodies such as municipal bodies and Panchayats in the state


• To allot funds to the various local bodies like municipal bodies and Panchayats in the state from the Consolidated Fund of the State


• To distribute between the local bodies and the state government the net proceeds of the taxes, fees, duties, and tolls that are levied by the state


• To function as an arbiter between the center and the state government with regard to issues that are financial


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

The funds received by Madhya Pradesh Finance Commission:

Madhya Pradesh Finance Commission has been receiving funds from the Finance Commission of the central government. The Twelfth Finance Commission allotted the Finance Commission in Madhya Pradesh a grant of around 6.799% out of the total resources that have been allotted to all the states in India. Madhya Pradesh Finance Commission will receive this grant from the year 2005 to 2010.

The various sectors that receive funds from Madhya Pradesh Finance Commission:

• Development of infrastructure
• Primary education
• Computer training for school children
• Police administration
• Fiscal administration
• Fire services
• Health care sector
• Administration of prisons
• Administration of districts
• Heritage protection
• Public libraries

The state government must promote Madhya Pradesh Finance Commission:

The state government must give boost to the Finance Commission in Madhya Pradesh. This would help in bringing more funds from the center to the state which in its turn would bring about an all round development of the state.

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