The two-day National Conclave of State Finance Commissions (SFC) organised by the National Institute of Rural Development and Panchayati Raj (NIRDPR), Rajendranagar, Hyderabad from 29-30 November 2022, has begun.
Dr. G. Narendra Kumar, Director General, NIRDPR said that the Conclave would focus on the following issues for all-round analysis and working of SFCs, and suggest a broad roadmap and strategy towards bringing excellence to the functioning of SFCs in the future.
- How to work out a divisible pool of the State revenues – determination of State tax revenues and the collection charges to arrive at the “net proceeds” and the principles for distribution
- How to assess to requirements of PRIs – Review and forecast of (a) Revenues based on past trends and revenue potential (b) Expenditure on a normative basis
- How to develop a comprehensive system for compilation of data on Panchayats’ finances- To enable SFCs to assess the income and expenditure of the Panchayats
- How to work out devolution formula to rectify vertical gap. i.e., the mismatch between expenditure responsibilities and potential OSR, and rectify horizontal gap to equalise the inter-jurisdictional disparities
- How to professionalise SFCs- to design fiscal transfers to Panchayat to enhance their fiscal capacity and functional autonomy
Shri Sunil Kumar, Secretary, MoPR explained the role of CFC and SFCs in strengthening Panchayati Raj Institutions. He said MoPR has drawn up a broad vision for the socio and economic transformation of rural areas through eGramSwaraj, SVAMITVA and Audit online, etc.
Therefore, there is an urgent need to align the functioning of SFCs to maximise their contribution to strengthening the finances of Panchayats. Shri Sunil Kumar expressed hope that this Conclave would deliberate on redefining the role and functioning of SFC in a collaborative and consultative manner. He assured that the recommendations of the Conclave would be taken up with the States for consideration and implementation.
The inaugural session ended with vote of thanks presented by Dr.Chinnadurai, Associate Professor, CPRDPSSD, NIRDPR
