CHANDIGARH, June 29: The Haryana Government has constituted the Seventh State Finance Commission to review and recommend the distribution of state financial resources between the government and local self-governing bodies, with an eye on strengthening fiscal decentralisation and autonomy at the grassroots.
According to a notification issued by Chief Secretary Anurag Rastogi, retired Chief Secretary Sanjeev Kaushal has been appointed Chairman of the newly formed commission. IAS officer Anshaj Singh will serve as the Member Secretary.
The commission’s mandate spans both rural and urban spheres, with a comprehensive brief to assess the fiscal framework for Panchayati Raj Institutions (PRIs)—including zila parishads, panchayat samitis, and gram panchayats—as well as Urban Local Bodies (ULBs) such as municipal corporations, councils, and committees.
Its responsibilities include recommending the principles governing the distribution of net proceeds from state-imposed taxes, duties, tolls, and fees between the state government and PRIs and ULBs. It will also identify which taxes and fees may be assigned to or appropriated by local bodies, and propose the structure and quantum of grants-in-aid to be disbursed from the Consolidated Fund of the State.
“The aim is to improve the financial sustainability of local bodies and enhance their revenue-generating capacity,” the notification stated.
The commission has been tasked with evaluating a broad spectrum of fiscal considerations. These include maintaining a balance between the state’s receipts and expenditures, generating a sufficient surplus for capital investments, and meeting the recurring costs associated with civic administration and public infrastructure upkeep.
It will also examine the financial potential and expenditure responsibilities of local institutions and propose rationalisation strategies to improve efficiency and autonomy.
For urban bodies in particular, the commission will propose frameworks for revenue distribution, suitable tax assignments, grant mechanisms, and fiscal strengthening measures that align with the urbanisation needs of the state.
The commission has been given a timeline to submit its final report by March 31, 2026, with its recommendations covering the five-year fiscal period from 2026–27 to 2030–31.
Kaushal, who retired as Chief Secretary on July 31, 2024, was subsequently appointed as Chairman of the Haryana Power Generation Corporation Limited. His appointment to head the finance panel brings administrative experience to a crucial exercise aimed at reinforcing the financial backbone of local governance across Haryana.
Officials said the commission’s findings will play a pivotal role in shaping development priorities, capital expenditure plans, and revenue mechanisms for local institutions over the next half-decade.
