Section 98 in The Himachal Pradesh Panchayati Raj Act, 1994
98. Finance Commission for Panchayats.
(1)The government shall within one year from the commencement of the Constitution (Seventy-third Amendment) Act, 1992 and thereafter at expiration of every fifth year constitute a Finance Commission to review the financial position of Panchayats and to make recommendations to the Government as to -(a)the principles which should govern -(i)the distribution between the State and the Panchayats of the net proceeds of the taxes, duties, tolls and fees leviable by the Government which may be divided between them and allocation between the Panchayats of their respective shares of such proceeds;(ii)the determination of the taxes, duties, tolls and fees which may be assigned to or appropriated by the Panchayats;(iii)the grants-in-aid to Panchayats from the Consolidated Fund of tie State.(b)the measures needed to improve the financial position of the Panchayats:(c)any other matter referred to the Finance Commission by the Government in the interest of the sound finance of the Panchayats.(2)The Finance Commission shall consist of a Chairman and two other members.(3)[ The Chairman of the Finance Commission shall be selected from amongst the persons who have experience in public affairs and who have, -(i)special knowledge and experience in economic and financial matters relating to Panchayats; or(ii)special knowledge and experience in economic and financial matters relating to Municipalities; or(iii)wide experience in administration and financial matters;or(iv)special knowledge of economics.(3-A) The other two members of the Finance Commission shall be selected from amongst the officers of the State Government not below the rank of Secretary to the Government or the Head of the Department.(3-B) The Chairman of the Finance Commission shall be paid such salary and allowances as may be prescribed.] [Substituted by Act No. 9 of 2011, dated 22.1.2011.](4)The Chairman or a member of the Finance Commission may resign his office by writing under his hand and addressed to the Government, but he shall continue in office until his resignation is accepted.(5)The casual vacancy created by the resignation of the member or Chairman under sub-section (4) or for any other reasons 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.(6)The Finance Commission shall determine its procedure.(7)The Commission shall have the following powers in the performance of its functions, namely:-(a)to call for any record from any officer or authority;(b)to summon any person to give evidence or produce record; and(c)such other powers as may be prescribed.(8)The Government shall cause every recommendation made by the Finance Commission under this section together with an explanatory memorandum as to the action taken thereon to be laid before the State Legislative Assembly.
