Bhubaneswar: The Sixth State Finance Commission(SFC) of Odisha, led by Chairman Dr. Arun Kumar Panda, submitted its interim report to Chief Minister Shri Mohan Charan Majhi at Lok Seva Bhawan on Monday.
The report contains crucial recommendations aimed at strengthening the financial position of the state’s Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs).
The commission, constituted under Articles 243-I and 243-Y of the Indian Constitution, is tasked with ensuring a sound fiscal framework for local self-governance.
The interim report’s recommendations focus on improving the financial health and autonomy of these bodies, which are critical for grassroots development. The key proposals include:
Tax Devolution: Suggestions for a more effective system for the distribution of taxes, duties, and tolls collected by the state government to local bodies.
Grant-in-Aid: Recommendations on the principles governing the provision of grants-in-aid from the Consolidated Fund of the State to supplement the revenues of PRIs and ULBs.
Improving Financial Position: Measures to help local bodies enhance their own revenue generation and manage their finances more efficiently.
The interim findings will also be submitted to the Sixteenth Finance Commission, the national body responsible for similar recommendations to the Union Government.
The meeting saw the presence of several senior government officials, including Deputy Chief Minister Smt.Pravati Parida, Rural Development and Panchayati Raj Minister Shri Rabi Narayan Naik, and Housing & Urban Development Minister Dr. Krushna Chandra Mahapatra.
The commission, which includes members Prof. Asit Ranjan Mohanty, Prof. Amaresh Samantaray, and Dr. Bibhu Prasad Nayak, along with Member Secretary Dr. Satyapriya Rath, is expected to submit its final report later this year.
This final report will cover a five-year award period, starting from April 1, 2026, and will provide a more detailed roadmap for the state’s financial devolution to its local governing bodies.