State Finance Commission

State Finance Commission:

1. (1) The Governor shall constitute every five year a State Finance Commission to review the financial position of the Municipalities at all levels and to make recommendation to the Governor as to-
   • (a) the principles which should govern-
     • (i) the distribution between the Government and the Municipalities of the net proceeds of the taxes, duties, tolls and fees leviable by the Government which may be divided between them under this Act and allocation between the Municipalities at all levels, of their respective shares of such proceeds;
     • (ii) the determination of the taxes, duties, tolls, rates and fees which may be assigned to or appropriated by the Municipalities;
     • (iii) the grants-in-aid to the Municipalities from the consolidated Fund of the State;
   • (b) the measures needed to improve the financial position of the Municipalities; or
   • (c) any other matter referred to the State Finance Commission by the Governor in the interest of sound finance of the Municipalities.
2. (2) The State Finance Commission shall consist of two or more members of whom one shall be the Chairman.
3. (3) To be appointed as a Chairman or a member of the State Finance Commission, a person must possess such qualifications or experience as the Government may, by rules, prescribe.
4. (4) The Finance Commission shall determine its procedure and shall have such powers in the performance of their functions as the Government may, by rules, prescribe.
5. (5) The Chairman or a member of the State Finance Commission may resign his office by writing under his hand and addressed to the Governor but he shall continue in Office until his resignation is accepted by the Governor.
6. (6) The casual vacancy created by the registration of the Chairman or a member under sub-section (5) or for any other reason may be filled up by fresh appointment and the Chairman or the member so appointed shall hold Office for the remaining period for which the Chairman or the member in whose place he was appointed would have held Office.
7. (7) The State Finance Commission shall have the following powers in the performance of its functions, namely-
   • (a) to call for any record from any officer or authority;
   • (b) to summon any person to give evidence or produce any record; and
   • (c) such other powers as may be assigned to it by the Governor.
8. (8) The Governor shall cause every recommendation made by the State Finance Commission under this Section, together with an explanatory memorandum as to the action taken thereon to be laid before the Legislative Assembly of Mizoram.