Panel to study finance position

Dec. 2: The state government on Wednesday constituted the Fourth Finance Commission to review the financial position of the rural and urban local bodies and to make appropriate recommendations to the government.

Headed by senior IAS officer K Phanindra Reddy and comprising five members, the commission would study the distribution of the net proceeds of taxes, duties, tolls and fees leviable by the government and village panchayats, panchayat union councils, district panchayats, town panchayats, municipalities and corporations and also the same, which may be divided between them and the allocation of the respective shares of the proceeds.

According to an official release here the commission would assess the financial position of local bodies as on March 31, 2010 and submit its report by May 31, 2011, covering a period of five years, commencing on April 1, 2012.

It would determine the taxes, duties, tolls and fees which may be assigned to or appropriated by the local bodies and study the grants-in-aid to the said local bodies from the consolidated fund of the state.

It would suggest measures needed to improve the financial position of the local bodies and also possible new avenues for tapping resources, keeping in mind the tax structure in other states.