STATE FINANCE COMMISSION, KARNATAKA
The Honourable Governor of Karnataka has constituted the Fourth State Finance Commission (Fourth SFC) on 21st December 2015 consisting of Sri C.G.Chinnaswamy as chairman, and Sri H.D.Amaranathan and Dr.H.Shashidhar IAS (Retd) as members by exercising the powers conferred by Article 243 (I) and Article 243 (Y) of the Constitution of India read with section 267 of Karnataka Panchayat Raj Act 1993(Karnataka Act 14 of 1993) and section 503 C of the Karnataka Municipal Corporation Act 1976 as Amended in 1994 and Section 302 B of the Karnataka Municipalities Act 1964 as Amended in 1994. The award period of the Fourth SFC is five years as per the Constitutional provision. The SFC plays a decisive role in inter-governmental system at the state level. It has a decisive role to play in determining the contours of the financial relation between State Government and Local Bodies.
The principal tasks before the commission are: 1. Distribution of the net proceeds of the taxes, duties, tolls and fees of the state governments between State and Local bodies 2. Determination of taxes, duties, tolls and fees which may be assigned to local bodies 3. Awarding of grants-in-aid to the Local Bodies from the Consolidated Fund of the State. 4. Suggesting measures required to improve the financial position of the local bodies including the management of available resources.