CHENNAI: The Government of Tamil Nadu has constituted the Seventh State Finance Commission, headed by retired IAS officer K Allaudin. This Commission will review the financial position of various urban and rural local bodies and make appropriate recommendations on the distribution of funds to be provided by the State government.
This Commission has been directed to submit its report to the State government by August 31, 2026, covering the period of five years commencing on April 1, 2027.
The Sixth State Finance Commission of Tamil Nadu submitted its report on March 14, 2022. This Commission was headed by retired IAS officer Mohan Pyare.
An official release here said, the Non-official Member: Thiru. N Dinesh Kumar, Mayor, Tiruppur City Municipal Corporation, will be the non-official member of the Commission, while the Director of Municipal Administration, Commissioner of Rural Development and Panchayat Raj and the Commissioner of Town Panchayats will be ex-officio members. Pratik Tayal, Deputy Secretary, Finance Department, will be the member-secretary of the Commission.
The Commission will review the financial position of the rural and urban local bodies, namely, village panchayats, panchayat union councils, district panchayats, town panchayats, municipalities and municipal corporations and among others.
The Commission will make recommendations about the distribution between the State and the urban and rural local bodies of the net proceeds of the taxes, duties, tolls and fees leviable by the State, which may be divided between them and the allocation between the said local bodies of their respective shares of such proceeds.
Besides, the Commission will also recommend determination of taxes, duties, tolls and fees which may be assigned to, or appropriated by the rural and urban local bodies; and. Apart from these, the Commission will look into the grants-in-aid to the said local bodies from the Consolidated Fund of the State.