7. The State Financial Commission is looking for public opinions on a number of topics related to the administration of public and finance of local bodies in Kerala, including the potential of loans on the capital market in the field of financing their development projects, expanding their income base and effective alleviation of disasters at local level.
7. The Commission, which was established last year with a former member of the CV Harilla Board as its chairman, is tasked to study the fiscal position of rural and city local bodies in Kerala and the recommendation of measures to strengthen their finances.
Questionnaire
In a detailed questionnaire, the Commission made proposals from the public for possible new sources of income for Panchayats, municipalities and corporations. The public opinion was also sought about increasing capital/loans from the market for local level financing.
Increasing the capacity of increasing resources of local governments through tax and tax revenues has an important place in the conditions of reference (TOR) 7. Commission. Among other things, the panel is required to design “frames for local self -government to increase sources from financial institutions and markets and by means of other means such as land association and public private participation.”
Budget design
The state budget 2025-26 also contained a proposal that would allow local authorities to obtain 1,000 GBP Crore through “municipal bonds, green bonds and associated municipal bonds”. This money would be used to build parks, commercial centers, roads and implementation of waste management and water supply programs. In May this year, Greater Chennai Corporation has published reports when it stated city bonds on the National Stock Exchange to raise funds for projects.
Among other things, the Commission sought to “constructive proposals” from the public about planning and implementing measures to alleviate disasters. The Tor Commission requires to recommend steps that “allow local governments to effectively contribute to disaster management”.
Improvement of Administration
The Commission adopts proposals for measures to improve administration in local authorities, reduce their expenditure, effective deployment of resources and improve public services. Feedback also deals with the current deployment of the Fund for General purposes and maintenance funds, development funds, planned castes and planned tribes, projects that can be carried out in cooperation with other local authorities and government authorities and care of older and inpatient patients.
The State Financial Commission is established by the State Government pursuant to Section 1 of Article 243 (a). (I) and (s) Indian institutions, together with the relevant sections of the law of Keral Panchayat Raj and the municipalities of Kerala Act for the purpose of assessing the financial position of local and city local authorities and recommendations to the governor.
The questionnaire is accessible on the Commission’s website and on the financial department’s website
Published – 8 June 2025 17:53
