State Finance Commission

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Andhra Pradesh (3^rd SFC)

December, 2004

January, 2009

January, 2014

2005-06 to 2009-10

6.7 % of the total tax and non-tax revenue to be devolved to the Panchayats and Municipalities, the share would be as 72.25 % to the Panchayats and 27.25% to the Municipalities.

• Construction of GP office building
• Providing basic civic amenities like Rural Sanitation, water supply, drinking water facilities in the schools for the Panchayats
• Maintenance of Mandal Office Buildings/Municipal Buildings
• Towards payments of arrears. (Deficit Grant)
• Towards increase of half yearly D.A. and revision of pay scale of Municipal Staff

Assam (4^th SFC)

April, 2010

February, 2012

February, 2014

2011-12 to 2015-16

15 % of net proceeds of state taxes will be part of Divisible Pool (DP) for the period of 2012-13 to 2015-16.

• Construction of functional and residentialbuildings for Panchayats at all levels.
• For construction/improvement of markets, cremation and burial grounds at all level of Panchayats and cold storage for selected GP.
• Purchase of equipments for solid waste management and creation of toilets.
• Extending pensionary benefits to the employees of GMC.
• For construction of Zonal offices of GMC and for other purposes.>
• For training of Auditors in the Directorate of Audit.

10:25:65 (ZP:BP:GP)

Bihar 5^th SFC

December, 2013

January, 2016

NA

2015-16 to 2019-20

Devolution of 2.75% in 2015-16 to 3.25% in 2019-20 from the State Budget to the LBs primarily for capacity building and reforms.

Capacity Building

Performance

70:10:20

(GP:PS:ZP )

Goa 2^nd SFC

24.07.2006

31.12.2007

NA

2007-08 to 2011-12

Resource sharing was not recommended.

Total provision of Rs.1294.25 Crore for Panchayats, Rs. 629.92 Crore for Zilla Panchayat and Rs. 1011.10 Crore for Municipalities, represents transfer from Plan and Non Plan Budgets of the Departments.

General purpose

Gujarat (2^nd SFC)   

19.11.2003

NA

2005-06 to 2009-10

State allocates 21.15% of total tax revenue to Panchayats and Municipalities. Now, additional 10% of tax revenue should be diverted to Panchayats and Municipalities, which becomes 31.15% of the total gross tax receipts of the state.    

6% amount of divisible pool should be kept for social justice committees of all three levels.

• Incentive
• Compensatory (in lieu of Octroi)
• Maintenance
• General purpose (Ad hoc)

Haryana (4^th SFC)

April, 2010

June, 2014

NA

2011-12 to 2015-16

2.5% of the net own tax revenue will be shared between Panchayats and Municipalities in the ratio of 65:35 based on the rural-urban population ratio as per 2011 census.

The share of GPs and PSs within the district should be allocated on the basic of population (80%) and area (20%) same for Municipalities.

For the period 2015-16 the share of local bodies divisible pool would be 7% of DP and the ratio of Panchayats & Municipalities would be 50:50 as again rural urban population ratio of 65:35.

Special Purpose (one time)

• Maintenance of municipal road and SWM
• Up gradation of fire services
• Capacity building
• Strengthening the rate base of Panchayats & Municipalities
• Maintain some of accounts & audit of local bodies
• Setting up of calls for research & analyzing of public finance policy

75:15:10

(GP:BP:ZP)

Himachal Pradesh

April, 2010

June, 2014

NA

2012-13 to 2016-17

As per the recommendation of XIII-FC, Himachal Pradesh Received Rs. 559.54 Crore for Panchayats as grant in aid to augment the consolidated fund of the state, to supplement the resources of local governments. To check the counterbalancing entry the fourth SFC would not take into account the resource transfers as recommended by XIII-FC on either receipts or expenditure account.

Total resource transfer of Rs 858.96 crore to local governments. (55.5 percent to Panchayats (Rs. 476.47 crore) and 46.5 percent (Rs. 382.48 crore) to Municipalities respectively)

• General purpose
• Supplementary

Karnataka (3^rd SFC)

Aug, 2006

Oct, 2008

December, 2009

2011-12 to 2015-16

33% of Net Own Revenue Receipts of state should be distributed to Panchayats and Municipalities.

Relative shares of Panchayats and Municipalities shall be in the ratio of 70:30 out of 33% of Net Own Revenue Receipts of the State

Special Purpose

• to organize programmes at village level covering

sanitation, health checkup, cultural and folk sports

• construction of youth association buildings
• For conducting folk arts training programmes.
• To take up youth development programmes at village, hobli, taluk and district levels.

Statutory Development

Fund Equalization (Additional Grant)

Incentive

Block Untied Grant

For equitable distribution of resources, different indicators have been adopted to

determine the relative of each ZP, TP and GP

Kerala (4^th SFC)

Sept, 2009

January, 2011

February, 2011

2011-12 to 2016-17

3.5 % of State Own Tax Revenue (SOTR) to Local Governments (LGs) as General Purpose Fund (GPF)

The GPF to be divided among Gram Panchayat (GP), Municipalities, and Corporations in the ratio of 75.93:10.02:14.05 after setting off Rs. 125 lakhs per District Panchayat (DP) and Rs.15 lakhs per Block Panchayat (BP).

General Purpose

• A special grant of Rs. 25 lakh to each one of the 16 GPs
• A grant of Rs. 15 lakh to each of 58 GPs.

60:20:20 (GP:BP:ZP)

Madhya Pradesh (3^rd SFC)

July, 2005

November, 2008

March, 2009

2001-02 to 2005-06

5% of the net divisible pool to be devolved to the Panchayats and municipalities.

4% to be allocated to the Panchayats and 1 % to the municipalities

Performance Based

To those Gram Panchayats which levy and collect the taxes on time.

General Purpose

Establishment

Maintenance

Compensatory

Conditional Matching Grant

Maharashtra  (3^rd SFC)

January, 2005

June, 2006

December,2013

2006-07 to 2010-11

Total additional transfer to LBs to be around 7.8% of the revenues, without breaching Fiscal Responsibility rules.

Matching (Scheme Specific, Cost Sharing)

• Maintaining water supply schemes
• To initiate a programme of low cost sewage disposal scheme in large size villages.

Maintenance

• for repair and maintenance of School rooms
• Repair and maintenance of health service to ZPs.

Fund Equalization (One Time Grant)

• To meet 50% of the remaining outstanding amount of arrears of Maharashtra Jeevan Pradhikaran by GPs

Manipur  (2^nd SFC)

January, 2003

November, 2004

December, 2005

2001-02 to 2005-06

10% share for the rural local bodies including District Councils and Municipalities in the State’s own revenue including the State’s share of central taxes.

15:85 (ZP:GP)

Odisha (4^th SFC)

October, 2013

September, 2014

February, 2015

2015-16 to 2019-20

3% of the net tax revenue to be devolved between Panchayats and Municipalities in the proportion of 75:25.

Limit the total transfer to Local Bodies (LBs) within 10% of net divisible pool of State taxes projected for the award period from 2015-20.

Devolution to the of LBs, to be on the basis of size, density and percentage of population below poverty line (Tendulkar Methodology), literacy rate and SC & ST concentration.

Special Purpose

Odisha Kendu Leaves Grants should be either shared with the pluckers instead of Panchayats or it should be withdrawn completely.

The Commission does not consider the continuance of Sirat Grants and MFP worthwhile and recommends that it should be stopped.

75:20:05 (GP:BP:ZP)

Punjab (3^rd SFC)

Sept, 2004

December, 2006

June, 2007

2006-07 to 2010-11

4% of the State’s net tax collection (minus compensation for abolished octroi) to be divided between Municipalities and Panchayats.

Division between urban and rural areas on the basis of population in 34%: 66% respectively.

Downward percolation of grants at district level as per the recommendation of District Planning Committee.

Rajasthan (4^th SFCs)

April, 2011

September, 2013

October, 2012

2010-11 to 2014-15

5% of net own tax revenue (excluding Entry tax and land revenue) of the State government be devolved to the Panchayats and Municipalities in the ratio of 75.1:24.9.

2% of Cess on Excise Duty on Liquor should be distributed between Panchayats and Municipalities in the ratio of 40:60 respectively.

25% of the entry tax should be distributed between Panchayats and Municipalities in the ratio of 40:60 respectively.

Special Purpose (Functional)

Performance

General Purpose (Untied)

Incentive

Compensatory (in lieu of Octroi)

85:12:03

(GP:BP:ZP)

Sikkim (4^th SFC)

June, 2012

May, 2013

February, 2015

2015-16 to 2019-20

Only 2.5% of the divisible pool of taxes for vertical sharing to the local bodies.

The allocation of share of taxes to Panchayats and Municipalities is 75:25

70:30 (GP:ZP)

Tamil Nadu (4^th SFC)

December, 2009

September, 2011

May, 2013

2012-13 to 2016-17

10% of the net state’s own tax revenue to be devolved to local governments.

The vertical sharing ratio between Panchayats and Municipalities should be 56:44.

10% from out of the devolution for Panchayats towards Infrastructure Gap Filling Fund.

General Purpose

(Lump Sum )

(8:32:60)

(ZP:BP:GP)

Uttar Pradesh

December, 2011

December, 2014

March, 2015

2011-12 to 2015-16

15% of net own revenue shared with local governments.

Inter se Distribution at Municipality level should be on the basic of population(90%) and area (10%).

No recommendation

15:10:75

(ZP:BP:GP)

Uttarakhand (3^rd SFC)

December, 2009

NA

NA

2010-11 to 2015-16

10.5% of the State’s own tax revenue to be distributed equally between the Municipalities and Panchayats in the ratio of 50:50.

Grant-in-aid of 0.25% over and above 10.5% to be given to local bodies depending on the quantum of arrears

Incentive

Special Purpose

• For construction of ZP building in Champawat.
•  For institutional arrangement of solid waste in Kausani.
• For repairs, renovation and modernization of Durga Sah Memorial Library in the year 2012-13.
• For capacity building/research work relating to urban issues has been recommended.

General Purpose

(50:20:30)

(GP:BP:ZP)

West Bengal 3^rd SFC

Feb, 2006

Oct, 2008

July, 2009

2008-09 to 2012-13

5% of State’s own net tax revenue to be devolved as an ‘untied’ entitlement to the LSGs for 2008-09 with a progressive increase of 12% per annum for the remaining four financial years.The total ‘untied’ fund allocation at the state level should be split into 2 segments:

Municipalities & Panchayats, with the respective population ratio 24:76.

12% of ‘untied’ fund is allocated to ZPs, 18% to PSs and 70% to GPS.

Deficit Grant (Pension Grant)

• A special fund named as a ‘Pension Fund’ to be granted to the Municipalities constituting of the

amount received on account of arrear Property Tax and the Service Charges.

general purpose

12:18:30

(ZP:BP:GP)