Even 3 yrs after enactment of Act, Govt fails to constitute Finance Commission

Mohinder Verma
JAMMU, May 31: In a testimony of important legislations remaining confined in the official records for years together instead of being implemented, the Government has failed to constitute separate Finance Commission for the Municipalities and Panchayats even three years after the enactment of legislation in this regard. Ironically, senior officers of the concerned departments are unaware of such a provision existing in the State despite the fact that official website of one such department has posted the entire legislation.
Official sources told EXCELSIOR that State Legislature during the Budget Session of 2011 enacted a legislation titled the Jammu and Kashmir State Finance Commission for Panchayats and Municipalities Act and the same was published in the Government Gazette on April 23, 2011 after receiving the assent of the Governor.
The main objective behind the enactment of the Act was to review the financial position of the Municipalities and Panchayats across the State through a separate State Finance Commission, they said, adding after the enactment of the Act the Government had to constitute State Finance Commission headed by an eminent economist with expertise in State finance, planning, rural development, panchayats and local bodies.
Even two members from amongst the persons of repute having excelled in administration, planning, Panchayats, Municipalities, legal or academic fields were to be appointed as members of the State Finance Commission by way of a proper notification.
However, during the past three years the Government has not constituted the Finance Commission despite the fact that the same was of immense importance to improve the financial condition of the Municipalities and Panchayats, they said.
“What to talk of Finance Department, which had to initiate major step in the framing of the Commission, even the Housing and Urban Development and Rural Development and Panchayati Raj Departments didn’t bother to ensure implementation of the Act”, sources said, adding “senior officers of Housing and Urban Development and Rural Development Departments are not even aware of existence of such an Act in the State”.
Their ignorance about the Act is notwithstanding the fact that website of the Housing and Urban Development Department hosts each and every detail about the Act, sources said.
The Commission had to recommend distribution between the State and the Municipalities and Panchayats  the net proceeds of the taxes, duties, tolls and fees leviable by the State, which may be divided between them; determination of the taxes, duties, tolls and fees which may be assigned to, or appropriated by the Municipalities/ Panchayats and the measures needed to improve the financial position of the Panchayats.
Moreover, the Act has given the powers to the Commission to recommend grants-in-aid to the Municipalities from the Consolidated Fund of the State and make suggestions on the matters referred to it by the Government in the interest of sound finance of Municipalities/ Panchayats. The framing of the Commission was further important because of the fact that Act has given the powers of maintaining proper accounts and other relevant records to the Commission besides preparing statement of accounts in the prescribed form.