Maharashtra Cabinet Greenlights Creation of Sixth Finance Commission
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Synopsis
The Maharashtra Cabinet has approved the creation of a sixth Finance Commission tasked with reviewing the financial status of local governance bodies and making recommendations for resource allocation, alongside launching a solar power project for irrigation with a significant budget.
Key Takeaways
- Maharashtra Cabinet approves sixth Finance Commission.
- Commission to assess financial conditions of local bodies.
- Emphasis on equitable revenue distribution from state taxes.
- Solar power project initiated for irrigation efficiency.
- Anti-drug task force established in the state.
Mumbai, Feb 18 (NationPress) During a Cabinet meeting on Tuesday, the Maharashtra government sanctioned the formation of a sixth Finance Commission.
The Cabinet empowered Chief Minister Devendra Fadnavis to propose candidates for the roles of Chairman and members of the Finance Commission to the state Governor C.P. Radhakrishnan.
A member of the Indian Administrative Service, ranked not below that of a Junior Administrative Grade Officer or an equivalent, will be designated as the Member Secretary of the Finance Commission.
Approval was granted to establish necessary positions during the Commission's term, allocate appropriate office space, and ensure sufficient budgetary provisions for both recurring and non-recurring expenses to enhance the Commission's operational efficiency.
The Sixth State Finance Commission will analyze the financial health of panchayats and municipalities, providing various recommendations including the equitable distribution of net revenue among panchayats and municipalities, as outlined in Parts 9 and 9-A of the Constitution, from state-collected taxes, duties, tolls, and fees.
The Commission will also advise on the allocation of taxes, duties, tolls, and fees to be transferred to panchayats or municipalities.
Furthermore, it will recommend principles for grant-in-aid to panchayats or municipalities from the state’s consolidated fund, alongside measures to enhance their financial standing.
The Commission may propose best practices for fund management within local self-governing bodies and other pertinent issues to improve their financial oversight.
In formulating its recommendations, the population will serve as a key criterion for determining the division of taxes, fees, and subsidies.
The Commission will reference population statistics from the 2011 Census.
The State Finance Commission will present its recommendations to the Maharashtra government after considering the inputs from the Central Finance Commission.
In addition, the Cabinet approved the initiation of a solar power project for the Mysal Lift Irrigation Scheme under the Krishna-Koyna Lift Irrigation Scheme, aimed at enhancing energy efficiency with a budget of Rs 1,594 crore.
This project is expected to fulfill the annual electricity demands of approximately 398 million units for the lift irrigation initiative.
The Krishna Koyna Lift Irrigation Project encompasses two distinct lift irrigation schemes: Takari and Mhaisal.
The irrigation project will commence from the Krishna River at Mhaisal, lifting a total of 23.44 trillion cubic feet of water in various stages, thereby providing irrigation to 1,08,197 hectares of drought-affected areas in districts such as Miraj, Kavathe Mahankal, Tasgaon, Jat in Sangli district, and Sangola and Mangalwedha talukas in Solapur district.
Upon project approval, the Cabinet emphasized utilizing solar energy for water pumping to reduce electricity costs.
The preliminary project report for the capital fund assistance for this energy-efficient water management and solar energy initiative has received approval from the Ministry of Finance.
A tripartite agreement has been sanctioned for a project totaling Rs 1,594 crore, which includes a loan of 130 million euros (approximately Rs 1,120 crore) from KFW German Bank and an investment of Rs 474 crore from the state government.
The Cabinet also sanctioned a revised provision of Rs 1,275.78 crore for the medium-sized project of Varkhede Londhe (barrage) in Jalgaon district.
Additionally, the Cabinet approved the formation of an anti-drug task force in the state, alongside 346 positions and related expenditures as per the government resolution dated August 31, 2023.
