About SFC

State Finance Commission

Article 243-I of the Constitution of India lays down that the Governor of state shall, as soon as may be within one year from the commencement of the Constitution (seventy third amendment) Act, 1992, and thereafter at the expiration of every fifth year, constitute a Finance Commission to review the financial position of the Panchayats and make recommendations to the Governor. Similarly, Article 243-Y of the Constitution has a provision for the municipalities. Article 243-I and 243-Y have a provision that the State Finance Commission shall recommend the principles governing the distribution between the state and the panchayats and the municipalities of the net proceeds of the taxes, duties, tolls and fees leviable by the State, which may be divided between them. The Commission shall also recommend about the grants to the Panchayats and Municipalities from the Consolidated Fund of the State and measures to improve the financial position of these local bodies. The Governor shall cause every recommendation made by the Commission under Article 243-I and 243-Y together with an explanatory memorandum as to the action taken thereon to be laid before the legislature of the State.

In Rajasthan, State Finance Commissions have been constituted regularly in accordance with the constitutional provisions. Brief details of earlier State Finance Commissions are as follows:-

*SONTR refers to State’s Own Net Tax Revenue
**ATR refers to Action Taken Report