Finance Standing Committee
Here is the complete English translation of the note on the Finance Standing Committee:
Finance Standing Committee
The Finance Standing Committee is the most important standing committee that controls and oversees the financial matters in the Local Self-Government Institutions (Gramat Panchayat, Block Panchayat, and District Panchayat) of Kerala.
Unlike other committees, the Vice President of the local body officially serves as the Chairperson of this committee. The treasury and financial discipline of the Panchayat function entirely under the close monitoring of this committee.
Main Duties and Core Functional Areas
1. Budget Preparation:
This committee is responsible for preparing the Budget, which contains the estimated income and expenditure statements of the local body for the upcoming financial year.
The Vice President presents this budget in the steering committee/governing body meeting (General Body) and obtains its approval.
2. Financial Scrutiny and Plan Verification:
The Finance Committee grants financial clearance/sanction for all schemes and projects prepared by the other standing committees (Development, Welfare, and Health & Education).
It verifies whether funds have been allocated accurately and whether the sanctioning of the amount is legally compliant.
3. Enhancing Internal Revenue (Own Source Revenue - OSR):
Identifying ways and means to increase the Panchayat's own funds or internal revenue.
Ensuring the proper and timely collection of Property Tax (Building Tax), Profession Tax, D&O (Dangerous and Offensive) license fees, advertisement tax, and trade licenses.
Planning special campaigns to recover long-pending tax arrears.
4. Approval of Expenditures:
Verifying and passing the monthly statements of accounts of all expenditures incurred within the Panchayat.
Allocating funds for unexpected emergency expenditures with the prior approval of the governing body.
5. Audit Compliance:
Preparing precise replies to the objections (Audit Objections) and queries raised during various audits, such as the Local Fund Audit and the LGSD (Local Government Service Delivery) Audit.
Taking necessary steps to recover financial losses, if any have occurred.
Composition of the Committee
Chairperson: The Vice President of the local body directly holds the chair of this committee.
Members: The Chairpersons of the other three standing committees (Development, Welfare, and Health & Education) are the ex-officio/mandatory members of the Finance Standing Committee. This ensures proper financial coordination among all committees.
Secretary (Convenor): The Panchayat Secretary, who is the administrative head of the local self-government institution, serves as the convenor/implementing officer of this committee. Given the financial nature of the matters, the Secretary’s presence is vital here.
Mode of Operation
The Finance Standing Committee meets at regular intervals to evaluate the overall financial status of the Panchayat. Progress in revenue collection and the utilization of plan funds (Expenditure Progress) are thoroughly discussed during these meetings.
In Short: While other committees can envision and design projects, the green light from the Finance Standing Committee is mandatory to allocate funds and execute them. This committee acts as the custodian that ensures transparency and financial stability in local governance.
Here is the complete English translation of the note on the Finance Standing Committee:
Finance Standing Committee
The Finance Standing Committee is the most important standing committee that controls and oversees the financial matters in the Local Self-Government Institutions (Gramat Panchayat, Block Panchayat, and District Panchayat) of Kerala.
Unlike other committees, the Vice President of the local body officially serves as the Chairperson of this committee. The treasury and financial discipline of the Panchayat function entirely under the close monitoring of this committee.
Main Duties and Core Functional Areas
1. Budget Preparation:
This committee is responsible for preparing the Budget, which contains the estimated income and expenditure statements of the local body for the upcoming financial year.
The Vice President presents this budget in the steering committee/governing body meeting (General Body) and obtains its approval.
2. Financial Scrutiny and Plan Verification:
The Finance Committee grants financial clearance/sanction for all schemes and projects prepared by the other standing committees (Development, Welfare, and Health & Education).
It verifies whether funds have been allocated accurately and whether the sanctioning of the amount is legally compliant.
3. Enhancing Internal Revenue (Own Source Revenue - OSR):
Identifying ways and means to increase the Panchayat's own funds or internal revenue.
Ensuring the proper and timely collection of Property Tax (Building Tax), Profession Tax, D&O (Dangerous and Offensive) license fees, advertisement tax, and trade licenses.
Planning special campaigns to recover long-pending tax arrears.
4. Approval of Expenditures:
Verifying and passing the monthly statements of accounts of all expenditures incurred within the Panchayat.
Allocating funds for unexpected emergency expenditures with the prior approval of the governing body.
5. Audit Compliance:
Preparing precise replies to the objections (Audit Objections) and queries raised during various audits, such as the Local Fund Audit and the LGSD (Local Government Service Delivery) Audit.
Taking necessary steps to recover financial losses, if any have occurred.
Composition of the Committee
Chairperson: The Vice President of the local body directly holds the chair of this committee.
Members: The Chairpersons of the other three standing committees (Development, Welfare, and Health & Education) are the ex-officio/mandatory members of the Finance Standing Committee. This ensures proper financial coordination among all committees.
Secretary (Convenor): The Panchayat Secretary, who is the administrative head of the local self-government institution, serves as the convenor/implementing officer of this committee. Given the financial nature of the matters, the Secretary’s presence is vital here.
Mode of Operation
The Finance Standing Committee meets at regular intervals to evaluate the overall financial status of the Panchayat. Progress in revenue collection and the utilization of plan funds (Expenditure Progress) are thoroughly discussed during these meetings.
In Short: While other committees can envision and design projects, the green light from the Finance Standing Committee is mandatory to allocate funds and execute them. This committee acts as the custodian that ensures transparency and financial stability in local governance.