Nagaland Government has constituted the first State Finance Commission to work out modalities for devolution of resources to urban local bodies, official sources said today.
The commission will devise the formula for distribution of net proceeds of taxes, duties, tolls and fees levied by the state between the government and municipal councils and committees.
The four-member panel will be headed by Justice (Retired) Zelre Angami and the tenure of the Commission will be for a period of 12 months, upto July 31, 2009.
Other members are L T Konyak, NCS (retired), R.O. Ovung, Retired Commissioner of Taxes and Commissioner and Secretary, Urban Development as Member Secretary.
The Commission will make recommendations relating to determination of taxes, duties, tolls, fees which may be assigned to, or appropriated by the municipalities and the grant-in-aid to the civic bodies from the Consolidated Fund of the state.
The Commission will also recommend measures need to improve the financial position of the municipalities and any other matter referred to the Commission by the state in the interest of sound finances of the municipalities.
While making recommendations the Commission will weigh the option of balancing the receipts and expenditure of the state and the local bodies and for generating surplus for capital investment, the requirement of the municipalities, their potential for raising resources and for reducing expenditure.
