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Report and recommendations of Fourth state finance commission Tamil Nadu

Abstract:

The Terms of Reference for the Fourth State Finance Commission as mentioned in the previous chapter are limited to looking into the finances of the local governments and the State Government and to make appropriate recommendations as to what should constitute the devolution formula. Consequently, the Commission has limited its review to the financial aspects unlike the previous Commissions which have been ordained to look into the issues like reclassification, delegation of powers, upgradation, etc. As a Constitutional body, the Fourth State Finance Commission needs to review the status of the implementation of the recommendations of the previous Commission and also the untapped potential as a result of non-implementation of any recommendation of the previous Commission. Similarly, there is a need to review the implementation of the recommendations of Central Finance Commission (CFC), its impact on local body finances also as provided in the template given by the XIII FC.


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