The government has constituted the Fifth State Finance Commission to review the financial position of rural and urban local bodies.
It will be headed by S. Krishnan, Principal Secretary (Planning and Development) and will include B. Senguttvan, Member of Parliament representing Vellore; the Director of Municipal Administration; the Director of Town Panchayats; and the Director of Rural Development and Panchayat Raj.
According to a December 1 notification, the panel will make recommendations on the principles for devolution of funds to the local bodies.
It will also suggest measures to improve the finances of the local bodies, and new avenues of resources.
The commission would review the financial position of the local bodies as on March 31, 2015. It would submit its report by May 2016, covering five years from April 1, 2017.
