Chembilode
Grama Panchayat

Finance Standing Committee: Main Responsibilities

The Finance Standing Committee is one of the most important standing committees in the village panchayats of Kerala. This committee controls and plans the financial matters of the panchayat.

Below are the key details regarding the Finance Standing Committee:

1. Composition and Chairperson

• Chairperson: The Village Panchayat Vice-President is the official Chairperson (Ex-officio Chairperson) of this committee.
• Members: A fixed number of members chosen from among the panchayat members serve on this committee.

2. Key Responsibilities and Powers

The main functions of the Finance Standing Committee are as follows:

• Budget Preparation: Preparing the budget containing the annual estimates of income and expenditure of the Grama Panchayat is a major responsibility of this committee. This is subsequently submitted for the approval of the panchayat committee.
• Financial Control: Monitor the income and expenditure of the panchayat, ensuring that fund utilization adheres to proper guidelines.
• Taxes and Revenue: Supervise the levy and collection of taxes (building tax, professional tax, etc.) and fees to increase the panchayat's own fund generation.
• Accounts and Audit: Prepare the annual accounts of the panchayat, review audit reports, and take steps to resolve any objections or discrepancies.
• Project Coordination: Evaluate and arrange the necessary financial support for projects prepared by other standing committees (Development, Welfare, Health-Education).

3. Significance

This committee acts as the custodian of the panchayat treasury. The panchayat cannot make decisions involving major financial liabilities without the approval or recommendation of the Finance Standing Committee.

According to the Kerala Panchayat Raj Act, this committee is essential for the transparent and efficient financial management of local self-government institutions.