Lakshadweep Finance Commission

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The Lakshadweep Finance Commission has been established in the union territory of Lakshadweep to bring about an overall development of the union territory. The Finance Commissions are set up as per the guidelines given in the Article 243 I of the Indian Constitution.

Lakshadweep Finance Commission:

The Lakshadweep Finance Commission is the fiscal committee of the Union Territory of Lakshadweep.

The Article 243 I of the Indian Constitution provides, that the Lieutenant Governor of the Union Territory would, set up the Finance Commission, at the end of every fifth year, for the purpose of reviewing the financial status of the place concerned, as per the introduction of the 73rd Amendment of the Constitution Act, 1992.


The Lakshadweep is one of the union territories in the Union of India. Some other interesting facts are-
  • It is a group of tiny islands in the south west part of India, situated in the Arabian Sea
  • The Lakshadweep is a fabulous place and famous for its pristine blue waves breaking on the golden sandy beaches
  • In the past few decades, it has become a popular tourist destination
  • Tourism sector is one of the primary sources of revenue for the union territory and it is quite well developed

Lakshadweep Finance Commission-Objectives:

The Lakshadweep Finance Commission follows these objectives for smooth functioning of the committee -
  • 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 financial assistance from the Government Funds pertaining to 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

Lakshadweep Finance Commission-Issues:
  • The Finance Commission of Lakshadweep constituted under Article 243 (I) would attain to all matters referred by the municipalities as per the Article 243 (Y) of the Constitution

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

  • 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 Lakshadweep 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

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