Haryana constitutes 7th finance commission

The Haryana government has formed the seventh state finance commission to recommend financial resource distribution for local bodies, led by Sanjeev Kaushal.

The Haryana government has constituted the seventh state finance commission, a constitutional entity, to examine and recommend distribution of financial resources between the state government and local self-governing bodies. A notification to this effect was issued on June 27 by chief secretary, Anurag Rastogi.

The commission which has been constituted under the provisions of Articles 243-I and 243-Y of the Constitution shall make its report available to the governor by March 31, 2026.

Former Haryana chief secretary Sanjeev Kaushal has been appointed as the chairman of the commission and IAS officer Anshaj Singh will serve as its member secretary.

The commission which has been constituted under the provisions of Articles 243-I and 243-Y of the Constitution shall make its report available to the governor by March 31, 2026. The report shall cover a period of five years from 2026-27 to 2030-31.

An action taken report pertaining to recommendations will be tabled in the state assembly by the state government.

The objective of the commission is to make recommendations on key fiscal matters concerning Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs), thereby improving decentralised governance and financial autonomy at the grassroots level. Its mandate included recommending principles for the distribution of net proceeds of taxes, duties, tolls, and fees levied by the state between the government and the PRIs—namely, zila parishads, panchayat samitis and gram panchayats.

It will also advise on the taxes and fees that may be assigned to or appropriated by these rural local bodies, along with grants-in-aid to them from the consolidated fund of the state.

The commission will also suggest measures to strengthen the financial health and revenue-generating capacity of PRIs.

The commission will make recommendations regarding the urban local bodies including the distribution of state tax proceeds between the government and municipal bodies, the taxes that may be assigned to municipal bodies, the structure of grants-in-aid to them and the steps needed to bolster their financial sustainability.

While making recommendations, the commission will take into account several aspects to ensure fiscal responsibility and equity. These included the need to maintain a balance between the state’s receipts and expenditures and to generate sufficient surplus for capital investments.

The commission will also assess the overall resource availability of the state government and the various demands on those resources, particularly expenditure related to civic administration, maintenance and upkeep of public infrastructure, recurring costs of plan schemes and other committed financial liabilities.

The financial requirements, resource-raising potential, and scope for expenditure rationalisation of the PRIs and municipal bodies will also be evaluated to strengthen their fiscal autonomy and efficiency.