Finance Standing Committee
In Kerala’s Local Self-Government Institutions (Grama Panchayat, Block Panchayat and District Panchayat), the Finance Standing Committee is one of the most important Standing Committees responsible for managing and supervising financial matters.
Unlike other committees, the Vice President of the Local Self-Government Institution serves as the official Chairperson of the Finance Standing Committee. The Panchayat’s treasury and financial discipline function under the overall supervision of this committee.
Major Duties and Areas of Responsibility
1. Budget Preparation
The Finance Standing Committee is responsible for preparing the budget containing the estimated revenue and expenditure of the Local Self-Government Institution for the upcoming financial year.
The Vice President presents the budget before the Panchayat Committee for consideration and approval.
2. Financial Scrutiny and Project Review
The Finance Standing Committee is responsible for examining the financial aspects of all plans and projects prepared by other Standing Committees, such as the Development, Welfare, and Health & Education Standing Committees.
The committee verifies whether adequate funds have been allocated and whether the proposed expenditure and allocation of funds are legally permissible.
3. Increasing Own Source Revenue (OSR)
The committee identifies measures to increase the Panchayat’s own-source revenue.
It ensures the proper collection of Property Tax, Profession Tax, D&O Licence Fees, Advertisement Tax and Trade Licence Fees.
The committee also plans special campaigns for the collection of outstanding tax arrears.
4. Approval of Expenditure
The committee examines and approves the Panchayat’s monthly expenditure accounts.
For unforeseen emergency expenditures, funds may be allocated with the prior approval of the Panchayat Committee, as applicable.
5. Audit Compliance
The committee prepares appropriate replies to audit objections and queries raised during various audits, including Local Fund Audit and LSGD Audit.
Where financial losses have occurred, the committee takes necessary steps for the recovery of the amount and for ensuring financial accountability.