Tamil Nadu Constitutes Seventh State Finance Commission; Report To Be Submitted by 31 August Next Year

The Tamil Nadu government has constituted the Seventh State Finance Commission, with retired IAS officer K Allaudin as its chairperson.

It will review the financial position of urban and rural local bodies and recommend an equitable distribution of funds from the State government. The Commission's recommendations—due to be submitted by 31 August 2026—will guide fiscal distribution for the next five years, beginning from 1 April 2027.

As per a report by The Hindu, the Commission will examine which taxes, duties, tolls, and fees may be assigned to or appropriated by local bodies, and will also provide recommendations on the scale and structure of grants-in-aid to be given to these bodies from the Consolidated Fund of the State.

Tiruppur Mayor N Dinesh Kumar has been named the non-official member of the panel. Key administrative members include the Director of Municipal Administration, the Commissioner of Rural Development and Panchayat Raj, and the Commissioner of Town Panchayats, who will serve as ex-officio members. IAS officer Pratik Tayal has been appointed as the Member-Secretary.