Section 51 in Kerala District Administration Act, 1979
51. Finance Commission for district councils.
(1)The Government shall, within three months from the date of commencement of this Act and thereafter it the expiration of every third year or at such earlier time as the Government may consider necessary, by order, constitute a Finance Commission which shall consist of a Chairman and two other members.(2)The Finance Commission shall go into the problems of income and expenditure in respect of the district councils and it shall be the duty of the Commission to make recommendations to the Government as to -(a)the pattern of assistance from the Government to the district council;(b)the principles which should govern the grants-in-aid from Government to the district councils;(c)the date from which the grants-in-aid or assistance is to be given effect to;(d)the possibility of assigning to the district councils a percentage of the proceeds from any tax levied and collected by the Government from that district, and(e)any other matter referred to the Commission by the Government in the interests of sound finances and efficient functioning of the district councils.(3)The Chairman or a member of the Finance Commission may resign his office by writing under his hand and addressed to the Finance Secretary to Government, but he shall continue in office until his resignation is accepted by the Government.(4)A casual vacancy created, by the resignation of a member or Chairman under sub-section (3), or for any other reason, may be filled by fresh appointment and a member or Chairman so appointed shall hold office for the remaining period for which the member or Chairman in whose place he was appointed would have held office.(5)The Finance Commission shall meet at such file and place and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be provided by rules made under this Act.(6)The recommendations of the Finance Commission shall be accepted by the Government with such suitable modifications as are deemed necessary with effect from such date as is notified in the Gazette.
