Andaman & Nicobar Islands Finance Commission

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The Andaman & Nicobar Islands Finance Commission is the one of the important Finance Commissions operating in the Union Territories. This finance commission is set up as per the guidelines given in Article 243 Sec I of the Indian Constitution. The objective of setting up this committee is to review the financial implementations of the funds allotted to the union territories.

Andaman & Nicobar Islands Finance Commission-Concepts:

Andaman & Nicobar Islands Finance Commission is the finance committee of the Union Territory of Andaman & Nicobar Islands.

The Finance Commission is set up under the Article 243 Sec I of the Indian Constitution. The Article 243 Sec I of the Indian Constitution orders that the Lieutenant Governor of the Union Territory would, at the end of every fifth year establish a Finance Commission for the purpose of reviewing, within the introduction of the 73rd Amendment of the Constitution Act, 1992.

Andaman & Nicobar Islands- Overview:
  • The Andaman & Nicobar Islands are a group of small islands in the Bay of Bengal
  • It is one of the seven union territories under the Union of India
  • Tourism is one of the primary revenue generators
Objectives-Andaman & Nicobar Islands Finance Commission

The objectives of the Andaman & Nicobar Islands Finance Commission includes-
  • The allocation of the total proceeds from the taxes, tolls, duties, and fees imposed by the Union Territory, which is to be divided between the Union Territory

  • The allocation of the total proceeds with the union territory pertaining to taxes, tolls, duties, and fees imposed by the Union Territory

  • The financial assistance from the Government Funds pertaining to the union territory

Andaman & Nicobar Islands Finance Commission-Development issues
  • The Finance Commission of Andaman & Nicobar Islands constituted under Article 243 Sec I would attain to all matters referred by the municipalities as per the Article 243Sec Y of the Constitution

  • All recommendations by the Lieutenant Governor should be made together with an explanatory memorandum which is to be presented before the governing body of the Union Territory

  • To attain to matters mentioned by the Lieutenant Governor to the Andaman & Nicobar Islands Finance Commission, regarding the proper finance implementations within the union territory

  • The allocation of the shipping in the budget has to be increased as it is the lifeline of the islands

  • The portion of the allotted funds for the development of the forest sector is to be increased

  • The Small industries in Andaman and Nicobar Islands requires subsidy on transport for development of those industries

  • The total alloted funds in the year 1996-97 was ` 215 crores


Utilization of the funds in 1996-97:
  • Agriculture was ` 7 crores
  • Rural Development was ` 15 crores
  • Transport was ` 20 crores
  • Housing was ` 5 crores
  • Ports was ` 3 crores
  • Education was ` 5 crores
  • Energy was ` 5 crores

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