Fiscal Decentralisation in Haryana : Some Suggestions for the Sixth State Finance Commission

Through 73rd and 74th Constitutional Amendments, Panchayat and Municipal systems were provided a systematic and endurable structure of participatory political process at grassroots level. State finance commission is constituted for determination of vertical and fiscal 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. 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. It may recommend to standardise procedures for levy of property and other taxes, norms for basic services and norms for staffing and salaries, incentivise performance through levy and collection of taxes and user charges, economy in expenditure and people’s participation