State Finance Commission (SFC)
Consequent to 73rd and 74th Constitutional amendments each State has to Constitute a State Finance Commission (SFC) after expiry of every five years. The basic purpose of the SFC is to make recommendations as to the sharing of State revenues with the rural and Urban local bodies, determination of the taxes, duties, tolls, fees etc. which may be assigned to or appropriated by the local bodies, principles for grants-in-aid to these bodies and the recommend measures needed to improve the financial Status of Panchayats and the Municipalities. SFC is a constitutional body, the scope and task of which is embodied in Articles 243-I and 243-Y of the Constitution.
On the recommendations of the State Finance Commission, Rs. 152.53 crore has been released to the municipalities during the financial year 2014-15. During the current financial year 2014-15, a provision of Rs. 152.53 crore has been approved in revised budget. Further, an amount of Rs. 165.00 crore is approved for next FY 2015-16.