Bhubaneswar: Search begins for finding out the new Chief for new State Finance Commission. After the Union Government has constituted the Sixteenth Finance Commission which has started its job in a big way, the State Government has also started the process to constitute a new State Finance Commission. It seems that the new State Finance Commission is going to be constituted very soon.
In 1951, the Central Government constituted the first Finance Commission under the chairmanship of K. C. Neogy. Usually, the term of office of a Finance Commission is for 5 years.
Recently, the Centre has formed the 16th Finance Commission headed by economist Arvind Panagariya. Usually, eminent economists, planners and experienced politicians are appointed as the Chairman and Member of the Finance Commission.
After Shri Niyogi, K. Santhanam, A.K. Chanda, P.V. Rajamannar, Mahaver Tyagi, K. Brahmananda Reddy, J.M. Shelat, YB Chavan, NKP Salve, KC Pant, AM Khusro, C. Rangarajan, VL Kelkar, YV Reddy, NK Singh has been appointed as the chief of the Central Finance Commission. Arvind Panagariya is the current Chairman of the 16th Finance Commission.
The first State Finance Commission was formed under the chairmanship of Justice S K Mohanty, while Trilochan Kanungo was the chairman of the second Finance Commission of the State.
Eminent economist Sudhakar Panda was appointed as the chairman of the third SFC, while retired IAS officer Chinmay Basu as the fourth chairman and Ravi Narayan Senapati was the head of the fifth State Finance Commission.
The Finance Commission formed in 2018 under the chairmanship of Rabi Narayan Senapati included Samson Maharana, then Professor of the Department of Commerce of Utkal University, SK Mishra, retired OAS officer, and Asit Mohanty, professor of Xavier Institute, as Members.
The Central Finance Commission recommends the financial provisions for PRI and Urban Bodies taking cue from State Finance Commission.
Accordingly, financial support is provided to Urban Local Bodies and Panchayati Raj Institutions of the State. The Recomendation of the Finance Commission is particularly useful for the economic development of these bodies. Therefore, the Commission plays an important role in accelerating development work in both rural and urban areas.
After completion of the term of the State Finance Commission formed under the chairmanship of Rabi Narayan Senapati, a new Commission has not been formed during the last government. Even though 7 months have been passed since the BJP Government was formed in Odisha, the new Finance Commission of the State has not been formed yet.
The Central Finance Commission is likely to give its interim report before the end of this year. Economists feel that new SFC is needed to be formed as soon as possible.
Chief Minister Mohan Charan Majhi is in charge of the Finance Department. Sources say that the process is underway at the government level to form a new State Finance Commission.