Finance Stanting Committee
Finance Standing Committee
The Finance Standing Committee is the most important Standing Committee responsible for managing and supervising financial matters in Local Self-Government Institutions (LSGIs) in Kerala, including Grama Panchayats, Block Panchayats, and District Panchayats.
Unlike other committees, the Vice-President of the Local Self-Government Institution serves as the official Chairperson of this committee. The Panchayat's treasury and financial discipline function under the close supervision of the Finance Standing Committee.
Major Responsibilities and Areas of Function
1. Budget Preparation
The committee is responsible for preparing the budget containing the estimated income and expenditure of the Local Self-Government Institution for the forthcoming financial year.
The Vice-President presents the budget before the Panchayat governing body for consideration and approval.
2. Financial Scrutiny and Project Review
The Finance Standing Committee provides financial scrutiny and approval for the plans and projects prepared by the other Standing Committees, including Development, Welfare, and Health & Education.
It examines whether funds have been properly allocated and whether the proposed expenditure and allocation of funds comply with the applicable rules and regulations.
3. Increasing Own Source Revenue (OSR)
The committee identifies measures to increase the Panchayat's Own Source Revenue (OSR).
It ensures the proper collection of:
- Property Tax
- Profession Tax
- D&O (Dangerous and Offensive) Licence Fees
- Advertisement Tax
- Trade and Business Licence Fees
It also plans special campaigns for the collection of outstanding tax arrears.
4. Approval of Expenditure
The committee examines and approves the Panchayat's monthly accounts and expenditure.
For unforeseen or emergency expenditures, funds are allocated with the prior approval of the governing body, as required by the applicable rules.
5. Audit Compliance
The committee prepares appropriate replies to audit objections and queries raised during various audits, including Local Fund Audit and LGSD Audit.
If any financial loss has occurred, the committee takes necessary steps for its recovery.
Composition of the Committee
Chairperson
The Vice-President of the Local Self-Government Institution serves directly as the Chairperson of the Finance Standing Committee.
Members
The Chairpersons of the other three Standing Committees — Development, Welfare, and Health & Education — are mandatory members of the Finance Standing Committee. This arrangement facilitates financial coordination among all the Standing Committees.
Secretary / Convenor
The Panchayat Secretary, who is the administrative head of the Local Self-Government Institution, serves as the Convenor/Executive Officer of the committee. The presence and involvement of the Secretary are particularly important because the committee deals with financial and administrative matters.