Imphal, Jan. 4: The Manipur government today constituted the state finance commission with former bureaucrat S.S. Sharma as chairman. Sharma is a retired state secretary for youth affairs and a former secretary at the Centre. The other three members are economists M. Iboton Singh and O.P. Bohra and retired joint secretary (finance) S. Ibochouba Singh.
The commission would make recommendations to the state government on the distribution of the net proceeds of taxes, duties, tolls and fees among panchayats, district councils and municipalities. It would also determine their extent and the amounts to be assigned to the local bodies.
The commission will recommend the principles, which would govern the grants-in-aid to these three bodies from the consolidated fund of the state and the specific sums to be paid to them by way of such grants.
While making the proposals, the commission should keep in mind the recommendations of the 11th Finance Commission and the resource position of the state, a government order said.
The panel has also been advised to take into consideration the need for sharing revenue between the state and the three local bodies with emphasis on their respective responsibilities.
The commission will review the functions vested in the local bodies and their jurisdiction and suggest necessary changes. The debt position of panchayats and municipalities would also be reviewed and corrective measures recommended. The commission has to submit its report within three months after assuming office.