The Hindu Business Line : AP finance panel to study fund devolution for local bodies

THE Third State Finance Commission has been entrusted with the mandate to look into various aspects of devolution of powers and funds to panchayat raj institutions along with matters related to tax collection for better revenues.

Addressing a press conference here, the Chairman of the State Finance Commission, Prof B. Satyanarayan, and Member, Mr Veera Reddy, said the commission would present its report within three years suggesting areas where local bodies need decentralisation.

Following the 73rd and 74th Constitution Amendments made in 1992, panchayat raj institutions and municipal bodies were recognised constitutionally. Following this move, the State Finance Commission has been constituted to recommend issues relating to devolution of funds from State Governments to the local bodies.

As part of the exercise to elicit information from people, cutting across various sections of society, the commission plans to hold three regional meetings in Circar, Rayalaseema and Telangana to interact with people.

Citing the case of Himachal Pradesh, Prof Satyanarayan said the recommendations of the commission there were accepted fully, so was the case with several other States.

Citing the case of earlier two commissions, he said out of 84 recommendations, 70 were accepted in Andhra Pradesh and in the second commission term, 46 out of 82 recommendations were taken as it is, 12 were under examination and 22 had not been accepted.

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