Fiscal decentralisation in Haryana: Some suggestions for the sixth state finance commission
- Nagarlok
- 53(3), Jun, 2021: p.15-30
Through 73rd and 74th Constitutional Amendments, Panchayat and Municipal systems were provided a systematic and endurable structure of participatory political process at grass root level. State finance commission is constituted for determination of vertical and horizontal transfers to municipalities and panchayats. Haryana state finance commission (SFC) has been constituted regularly. Sixth SFC was constituted on 22nd September 2020 for the period 2021-22 to 2025-26. The state has also showed progressive development towards achieving sustainable development goals except gender equality (SDG 5) and life on land (SDG 15) goals. Haryana has been a pioneer state in carrying out fiscal reforms. As per the budget estimates for 2020-21, fiscal deficit was projected at Rs. 25,682 crore, constituting 2.73 per cent of GSDP, which is well within the stipulated norm of three per cent under FRBM Act. Similarly, the debt to GSDP ratio has also been maintained below the norm of 25 per cent as prescribed under the FRBM Act. The state of Haryana through the Panchayati Raj Act, 1994 has devolved all 29 functions, included in the Eleventh Schedule of the Constitution, to all the three rungs of Panchayats. Fifth SFC recommended vertical devolution of seven per cent and horizontal devolution in the ratio of 45 per cent for Municipalities and 55 per cent for Panchayats. Sixth State Finance Commission may review previous SFC reports, suggest, inter alia, new local taxes, present data on which the reports are based, complain about poor data base, attempt estimates of local taxable capacities in terms of measurable indicators, indicate full O&M requirement of core services and suggest budget and accounting reforms of the local governments. – Reproduced
Fiscal decentralisation, Haryana, Sixth state finance commission