AP 3rd State Finance Commission

Andhra Pradesh 3rd Sate Finance Commission

In consonance with the Constitutional provisions of the 73rd Amendment Act, 1992, and as per Section 235 of A.P. Panchayat Raj Act, 1994 the Governor of A.P. have constituted the Third State Finance Commission on 16.01.2003 to apportion Revenue, Assignment of Taxes and to suggest to grants-in-aid to the local self Government units vide reference 1st read above. Though, the Commission was constituted during the year 2003, then reconstituted in 2004, they submitted the report very belatedly during the year 2008 consisting of 63 recommendations pertains to the period from 2005 to 2010 co-terminus with 12th Finance Commission of Government of India. Subsequently, the Government of India have appointed two Finance Commissions i.e. 13th Finance Commission which is meant for the period 2010-15 whose recommendations are presently under implementation and 14th Finance Commission which is busy transacting business and likely to submit their report by the end 2014.

The Third State Finance Commission has submitted its report with 63 recommendations out of which 44 recommendations pertain to Rural Local Bodies and 19 recommendations pertaining to Urban Local Bodies involving 1274.34 crores and Rs.489.38 crores respectively. On receipt of the report of the TSFC, Govt. had constituted the committee of Ministers and Secretaries to examine the report of the TSFC and suggest to Government on various steps to be taken on the recommendations of the Commission vide G.O.Rt.No.379, PR&RD(Mdl.I) Department dated.10.3.2008. The said committee has discussed the recommendations of the TSFC and considered the non-financial recommendations in principle.

As the financial recommendations and the quantum of the amount to be devolved to the Panchayat Raj Institutions were not decided, Government have reconstituted the committee of Ministers & Secretaries to suggest various steps to be taken on the financial recommendations of the Third State Finance Commission. The above said Committee have met on 7.6.2013 and after detailed discussions has decided to accept most of the recommendations of the Third State Finance Commission. As per the decision taken by the Committee of Ministers and Secretaries, the three member committee deliberated on the report and submitted detailed action plan as per the recommendations of the Committee of Ministers and Secretaries, which may be accepted and implemented.

The total devolution of funds recommended by the Third State Finance Commission is to the tune of Rs.1274.34 crores for PRIs and Rs.489.38 crores for urban local bodies for the period 2005-2010. The period from 2010-2015 is covered by the recommendations of XIII Finance Commission, but unfortunately there is no parallel State Finance Commission appointed for this period as yet. Even if a Commission is appointed now, it would not be possible for them to give their report before the end of year 2014. Hence, the committee of Ministers and Secretaries felt that the recommendations of Third State Finance Commission could be applied for the period from 2010-15 also. Further, post XIII Finance Commission Report the total devolution to the local bodies amounting to Rs.1597.04 crores for PanchayatRaj Institutions and Rs.515.24 crores for urban local bodies is exceeding the amount recommended by the Third State Finance Commission. Thus it is held that the constitutional and legal requirement of devolution is fulfilled

Under these circumstances, the recommendations of Third State Finance Commission proposed by the Committee of Ministers and Secretaries have been placed before the Council of Ministers on 03.12.2013 for its approval before placing the same before the State Legislature. The Council of Ministers have accepted the recommendations as described in Annexure-I & II. Government hereby decide to accept the recommendations of the Third State Finance Commission, both Financial and Non- Financial as annexed to this order. 6. The Departments in Secretariat/HODs noted in the address entries are requested to issue necessary follow up orders or instructions for implementation of these recommendations.
G.O.Ms.No. 461 Dated:13.12.2013.

1. G.O.Ms.No.13, PR&RD(Mdl.I) Deptt. Dt. 16.01.2003.
2. GO.Ms.No.390, PR&RD (Mdl.I) Deptt. Dt.23.12.2004.
3. G.O.Rt.No.379, PR & RD (Mdl.I) Deptt. Dated 10.03.2008.
4. G.O.Rt.No.515, PR & RD (Mdl.I) Deptt. Dated 06.04.2011.

CONDITIONS OF SERVICE OF STATE FINANCE COMMISSIONRULES, 1997.

ANDHRA PRADESH PANCHAYAT RAJ (CONDITIONS OF SERVICE OF STATE FINANCE COMMISSION) RULES, 1997.

Panchayat Raj and Rural Development (Mdl. III),

G.O.Ms. No. 247,

28th June 1997]

In exercise of the powers conferred, by Section 240 of Andhra Pradesh Panchayat Raj Act, 1994 (Act No. 13 of 1994) the Governor of Andhra Pradesh hereby makes the following rules:

RULES
PART-I: PRELIMINARY

1. Short title and Commencement:

1. These rules may be called the Andhra Pradesh Panchayati Raj (Salaries, Allowances, and conditions of Service of State Finance Commission) Rules. 1997.
2. They shall be deemed to have come into force with effect on and from the 1st of July 1994.

2. Definition:-In these rules, unless the context otherwise requires:

1. "Act" means Andhra Pradesh Panchayat Raj Act, 1994.
2. "Government" means the Government of Andhra Pradesh.
3. "Commission" means the the State Finance Commission constituted by the governor in pursuance with Article 243-I of the Constitution of India and section 235 of the Act.
4. "Chairman”, "Member-Secretary”, and "Members" mean the Chairman, the Member-Secretary, and the Members of the State Finance Commission appointed by the Governor under subsection (2) of the section 235 of the Act.
5. "M,embers" include the Chairman and Member-Secretary also.
6. "Prescribed" means prescribed by the rules made by the Government.
7. "Section" means section of the Act.
8. the words and expressions used, but not defined in these rules shall have the same meaning assigned to them in the Andhra Pradesh, Panchayat Raj Act 1994.

Part-II

3. Term:-the term of the Commission shall be as prescribed by the Governor in the orders constituting the Cuommission.

Part-III

4. Status:- Status of the Chairman, Member-Secretary, and Members shall be as prescribed by the Government.

Part-IV

5. Honorarium and Allowances:-The Chairman, Member-Secretary, and Members shall receive honorarium and incidental expenses as prescribed by the Government.

Part-V

6. Service Conditions:-A person who on the date of appointment to the Commission was in the service of the Central Government or the State Government or University are a Local Body or any other Body wholly or substantially owned or controlled by the Central or the State Government shall be deemed to have retired from such service with effect on and from the date of appointment as Chairman, Member-Secretary or Member.

Contd.Page. 2.

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7.  On such retirement, they shall be entitled to receive pension, gratuity, and other pensionary benefits in accordance with the rules roating to the retirement benefits applicable to them.

8. They shall be eligible for leave, including half-pay Commuted leave and surrender leave as in the case of regular Government employees. On the expiry of the term of office, they shall be entitled to receive cash equivalent to salary in respect of the leave attending to their credit.

Provided that the quantum of leave in case the time of retirement under rule six and during the year appointment in the commission put together shall not exceed 240 days. A person who on the date of joining the commission, amended thereafter from time to time the commission is credit. He shall be permitted to carry forward the leave. It is credit at the time of joining the commission or amended thereafter.

9. The Chairman and the Member-Secretary of Commission appointed to the Commission shall be entitled to pension for the service rendered by him in the Commission, provided that he has put in not less than two years of service with the commission. The monthly pension shall be calculated at six hundred for each completed year of service are part there thereof.

Provided that the calculated amount of pension together with the amount of pension already drawn, including committed portion of Pension, if any, shall not exceed the maximum amount of pension admissible to the higher ranked non-cadre of the state government, as prescribed in the Andhra Pradesh, revised Pension rules 1980 as amended from time to time.

10.  The Chairman, Member-Secretary, and Members shall be entitled to travelling allowances, daily allowances, mileage, etc., at the rate applicable to Grade-I officers and they shall be entitled to travel by Air Condition First Class and by Air.

11.  They shall be paid sitting fees (but of packet expense) at the rates fixed by the government.

12. The daily allowance admissible on tour shall not be paid for the day of meeting where out of pocket incidentials are paid.

The Chairman, Member-Secretary and Member and their families shall be entitled to medical treatment and accommodation in the hospitals as per the rules applicable to Grade-I officers.

13.  Miscellaneous:- where the status of minister has been occurred to the accorded to the Chairman, or Members they shall be entitled to the benefits etc., as applicable to Ministers given in the Andhra Pradesh payment of Salaries and Pension and Removal and disqualification Act, 1953, as amended from time to time.

14. Provisions:- In respect of Service Conditions, etc., which are not provided for for in these rules, the rules and orders applicable to Grade-I officers shall be applicable to the Chairman, Member-Secretary, and Members.

15. Powers to relax rules:-Government shall have the powers to relax any of the provisions of these rules.

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