Rajasthan State Finance Commission (SFC)

Rajasthan State Finance Commission (SFC) is a constitutional body Created under the provisions of 73^rd constitutional amendment act to review the financial position of Panchayati Raj Institutions(PRIs) under Article 243(I) and Urban Local Bodies(ULBs) under article 243(Y).

Appointment of Rajasthan SFC

• It shall be constituted by Governor of the state after every five year.
• It shall consist of a chairman and number of members (maximum four) determined by the governor. (The 6^th  SFC of Rajasthan constituted on 12^th April 2021 has 1 chairman and 2 members)

Recommendations of SFC:

1. Make recommendations to the governor about the principles that should govern:
2. The distribution of tax proceeds- taxes , duties, tolls, and fees levied by the state between the state and its PRIs at all three levels i.e village, block and district level.
3. Taxes, duties, tolls and fees levied by the PRIs themselves.
4. Grant in aid to PRIs from consolidated fund of the state.
5. Ways to improve the financial position of the PRIs.
6. Others matters referred to State Finance Commission by Governor of the state regarding improving the finance of PRIs.

NOTE: State Finance commission makes same recommendations as above under article 243(Y) for ULBs.

Governor of the state places the recommendations of State finance commission in the state legislature. It also includes the action taken report by the state government on the commission’s report.

Finance commissions of the Rajasthan

Till now six Finance commissions have been constituted in Rajasthan. Recently sixth finance commission have been constituted with Shri Pradhyuman singh as chairman and Shri Laxman Singh Rawat and Shri Ashok Lahoti as members on 12^th April 2021.

List of finance commissions constituted in Rajasthan is as follows.

Report of the Fifth State Finance Commission Rajasthan

(for 2015-2020)

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