Daman & Diu Finance Commission

The Daman & Diu Finance Commission is the committee set for the purpose of reviewing the financial operations of the union territory of the Daman & Diu. The Finance Commission is formed under the guidelines of Article 243 I of the Indian Constitution.

Daman & Diu Finance Commission-Facts:

Daman & Diu Finance Commission is the delegation of the Union Territory of Daman & Diu. The Finance Commission is set up under the Article 243 Sec I of the Indian Constitution.

The Article 243 I of the Indian Constitution provides, 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 financial status, set up the Finance Commission, within the introduction of the 73rd Amendment of the Constitution Act, 1992.

Daman & Diu- Overview:

• The Daman & Diu is the smallest union territory in the Union of India
• It is situated in between the state of Gujarat and Maharashtra
• Daman & Diu is one of the most popular tourist destinations and the tourism industry is huge revenue earner

Daman & Diu Finance Commission-Aims

• These target help the Daman & Diu Finance Commission to function in a better manner
• 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
• 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

Daman & Diu Finance Commission-Issues:

• The Finance Commission of Daman & Diu 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 Daman & Diu Finance Commission, regarding the proper financial operations within the union territory


• Determining the duties, tolls, taxes, and fees, which are to be imposed on the union territory


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

Daman & Diu - Expenses:

Actual Expenditure in the fiscal year 2006-07 was-

• Expenses on Agriculture and Allied Activities was ` 277.00 lakhs
• Expenses Rural Development was ` 150.00 lakhs
• Expenses Irrigation & Flood Control was ` 59.00 lakhs
• Expenses Energy was ` 1303.30 lakhs
• Expenses Industry & Minerals was ` 37.00 lakhs
• Expenses Transport was ` 1404.00 lakhs
• Expenses Science,Technology & Environment was ` 20.00 lakhs
• Expenses Other General Economic Services was ` 153.00 lakhs
• Expenses Social Services was ` 2220.00 lakhs
• Expenses General Services was ` 307.00 lakhs
• Total Expenses was ` 5930.00 lakhs

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