Finance Standing Committee

ELIKULAM GRAMA PANCHAYAT

Finance Standing Committee

Finance Standing Committee
FINANCE & FINANCIAL OVERSIGHT

About the Finance Standing Committee

The Finance Standing Committee is one of the most important standing committees in Local Self-Government Institutions in Kerala, including Grama Panchayats, Block Panchayats and District Panchayats. It is responsible for managing and overseeing financial matters of the local self-government institution.

Unlike other standing committees, the Vice President of the local self-government institution serves as the official Chairman/Chairperson of the Finance Standing Committee. The Panchayat's treasury and financial discipline function under the supervision of this committee.

CORE RESPONSIBILITY

Ensuring Financial Discipline and Transparency of the Panchayat

Supervision of revenue, expenditure, budget, project fund utilization and audit.

Major Responsibilities and Areas of Function

01 Budget Preparation
  • The committee prepares the Budget containing the estimated receipts 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.
02 Financial Allocation and Project Scrutiny
  • Financial scrutiny is carried out for the plans and projects prepared by other Standing Committees such as Development, Welfare, and Health & Education.
  • The committee verifies whether funds have been properly allocated.
  • It also examines whether the allocation of funds is legally permissible.
03 Increasing Own Source Revenue Own Source Revenue (OSR)

One of the major responsibilities of the committee is to identify ways to increase the Panchayat's own funds or own-source revenue.

Property Tax

Property Tax

Professional Tax

Professional Tax

Licence Fees

D&O / Trade Licence

Advertisement Tax

Advertisement Tax

The committee also focuses on planning special campaigns for the collection of outstanding taxes and arrears.

04 Approval of Expenditures
  • The committee examines and approves the accounts of all monthly expenditures incurred by the Panchayat.
  • Funds for unexpected emergency expenditures are allocated with the prior approval of the Panchayat Committee.
05 Audit Compliance
  • The committee prepares appropriate replies to audit objections and queries raised during various audits, including Local Fund Audit and LSGD audits.
  • If any financial losses have occurred, necessary steps are taken for recovery.

Committee Structure

Committee Structure
CHAIRMAN / CHAIRPERSON

Vice President

The Vice President of the local self-government institution directly serves as the Chairperson of the Finance Standing Committee.

MEMBERS

Chairpersons of Other Standing Committees

The Chairpersons of the other Standing Committees, namely Development, Welfare, and Health & Education, are mandatory members of the Finance Standing Committee.

SECRETARY / CONVENER

Panchayat Secretary

The Panchayat Secretary, who is the administrative head of the local self-government institution, functions as the Convener/Executive Officer of the committee.

HOW THE COMMITTEE WORKS

Working Method

The Finance Standing Committee meets at regular intervals and reviews the financial position of the Panchayat.

Revenue Collection
Revenue Collection
Plan Fund Utilization
Expenditure Progress
Financial Position
Financial Review

Financial Oversight — At a Glance

Revenue

Revenue
→

Budget

Budget
→

Fund Allocation

Allocation
→

Audit

Audit
IN SUMMARY

In Summary

Other committees may formulate plans and projects. However, the allocation and utilization of funds for their implementation require the financial scrutiny and approval of the Finance Standing Committee. The committee acts as a guardian of transparency and financial stability in local governance.

Major Areas of Function

AreaMajor Responsibility
BudgetPrepare and examine estimates of receipts and expenditure.
RevenueIncrease own-source revenue and strengthen tax collection.
ExpenditureExamine and approve monthly expenditures.
ProjectsExamine the financial aspects of projects.
AuditRespond to audit objections and queries and take necessary follow-up actions.
Elikkulam Grama Panchayat
Kottayam District • Kerala