Chapter XVII FINANCE COMMISSION AND ITS POWERS

(1) In this section, “commission” means the Finance Commission constituted by the Governor pursuant to clause (1) of article 243-1 of the Constitution. (2)The Commission shall consist of such number of members not exceeding three including the chairman as may be determined by the Government: Provided that members of the commission may be appointed on part time basis. (3)Persons who are to be appointed as member of the Commission shall be - (a)One shall be a person having special knowledge and experience in financial matters and economics; and (b)The other two shall be persons having experience in public administration or local administration or having special knowledge in financial matters and accounts of the Government and local bodies. (4)Every member of the commission shall hold office for such period may be specified in the order of the Governor appointing him, but shall eligible for re-appointment. (5)The chairman or a member of the commission may resign his office by writing under his hand and addressed to the Governor, but shall continue in office until his registration is accepted by the Governor. (6)A casual vacancy caused by the resignation of a member or chairman under subsection

1. (5) or for any other reason, may be filled by fresh appointment and a member or chairman so appointed shall hold office for the remaining period for which the member or chairman in whose place he was appointed would have held office. (7)The Commission shall meet at such time and place and shall observe such procedure in regard to the transaction of business at it meeting as may be determined by the Commission. (8)The commission shall in the performance of its functions have all the powers of the civil court under the Code of Civil Procedure, 1908 (Central Act 5 of 1908) while trying a suit it respect of the following matters, namely: - (a)summoning and enforcing the attendance of witness; (b)requiring the production of any document; (c)requisitioning any public record from any office. (9)The commission shall have powers to require any person to furnish information on such points and matters as in the opinion of the commission may be useful for or relevant to, any matter under the consideration of the commission. (10)Commission shall review the financial position of the Panchayats and submit recommendations to Governor regarding, (a)(i) the sharing among the Government and Panchayats of the net-income of the taxes, duties, cess and fees which are being levied by the Government and which may be shared with the Panchayats as per the constitution and dividing among the Panchayats at all levels, their shares in such incomes; (11)fixing the taxes, duties, cess and fees which may be ear marked for the Panchayats and may be expended by them;
   • (iii) the criteria regulating the financial aid etc. for the Panchayats from the State Consolidated Fund; (b)steps necessary for improving the financial position of the Panchayats; and (c)any other matters which is being left to the commission by the Governor taking into account of the interest of the financial security of the Panchayats. (11)Governor shall cause to be laid before the Assembly each recommendation submitted by the Commission under sub-section (10) along with explanatory memorandum regarding the steps taken on it. (12)Officers having knowledge and experience in financial matters shall be appointed as staff of the Commission in order to assist the Commission.