PANAJI
With the XV Finance Commission declaring no release of grants after March 2024 to the States that fail to comply with the Constitutional provisions in respect of the State Finance Commission (SFC), in Goa, the three-member Third State Finance Commission is all set to submit its report in January, next year. The five-year plan will be implemented between 2024 to 2029.
Goa has been on the radar of Comptroller Auditor General (CAG) and XV Finance Commission for being able to constitute only three SFCs during the period 1999 to 2022, as against six due as per the provisions of the Constitution.
Speaking to The Goan, chairman of Third Finance Commission Daulat Hawaldar admitted failure to constitute SFCs as per the provisions of the Constitution. “However, we have briefed the XV Commission during recent meeting and they are happy with our performance. We will be submitting the report in January 2024 and its implementation will commence from April 2024,” he said.
“Its true that XV finance commission has said that no grants would be released after March 2024 to States that failed on SFC provision, but it won’t have implications for Goa, as we are submitting the report before that,” Hawaldar said adding ‘we will be taking care of all the recommendations of XV commission and Central government in our report”.
The report would be then placed in the State Cabinet and tabled during the Winter Session of the Goa Legislative Assembly.
The Commission is expected to recommend various measures to strengthen the local bodies and to bring sustainability at local governing level by suggesting the government to grant them powers to levy and collect various taxes and fees.
Highly placed sources informed that the Commission has so far visited all the panchayats and municipal areas from 10 talukas and from August 16, they will cover local bodies from Bardez and Tiswadi. During their interaction, the Commission realised that the local bodies are not financially sustainable despite having various assets from which revenue can be augmented.
The CAG in its report ending March 2022 has said “Chronic delays in constitution of SFCs, failure to support its effective functioning and inaction on its recommendations by the State Government deprived the local bodies of assured revenues”.
As per the information, the first SFC made 26 recommendations on functions, administration, and finances of the local bodies, out of which, 15 were accepted, nine were rejected and two were partly accepted. Out of the 15 accepted recommendations, six were fully implemented whereas, one was implemented partially.
The second SFC inter alia undertook the task of mapping the functions transferred to the local bodies with activities, to facilitate their implementation and made recommendations on devolution of finances according to the programmes/schemes executed by different tiers of local self-Government. However, a Committee constituted by the Government (July 2010) to consider the recommendations of the Commission did not submit its report as of July 2022.
The third SFC was constituted (December 2016) after a delay of more than six years. The Commission could not commence its functioning, as the State Government failed to provide adequate infrastructure support. State Government notified the reconstitution of third SFC in January 2022.
