Chandigarh, June 28
The Haryana Government has constituted the Seventh State Finance Commission (7th SFC) to examine and recommend the distribution of financial resources between the State Government and local self-governing bodies. A notification to this effect was issued here today by the Chief Secretary Sh. Anurag Rastogi .
As per an official notification, former Chief Secretary of Haryana, Sh. Sanjeev Kaushal, has been appointed as the Chairman of the Commission. Shri Anshaj Singh, IAS, will serve as the Member Secretary.
The Commission has been constituted under the provisions of Articles 243-I and 243-Y of the Constitution of India, Section 213 of the Haryana Panchayati Raj Act, 1994, and Rule 3 of the Haryana Finance Commission Rules, 1994. The purpose 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.
The Commission’s mandate includes 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. Furthermore, the Commission will suggest measures to strengthen the financial health and revenue-generating capacity of PRIs.
Similarly, the Commission will make recommendations regarding the urban local bodies. These include the distribution of State tax proceeds between the Government and Municipalities, the taxes that may be assigned to Municipalities, the structure of grants-in-aid to them, and the steps needed to bolster their financial sustainability.
While formulating its recommendations, the Commission is required to take into account several important considerations to ensure fiscal responsibility and equity. These include the need to maintain a balance between the State’s receipts and expenditures and to generate sufficient surplus for capital investments. The Commission must 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. Additionally, the financial requirements, resource-raising potential, and scope for expenditure rationalization of the Panchayati Raj Institutions and Municipalities will be carefully evaluated to strengthen their fiscal autonomy and efficiency.
The Seventh State Finance Commission has been directed to submit its final report to the Governor of Haryana by 31st March, 2026. The report will cover a five-year fiscal period, from 2026–27 to 2030–31, and its recommendations will play a critical role in shaping local governance finances during this timeframe.
The headquarters of the Commission will be located in Panchkula, with office space allocated in the Swarna Jayanti Haryana Institute for Fiscal Management (SJHIFM).
