BANGALORE: The Third State Finance Commission for Panchayati Raj institutions and urban local bodies, headed by A.G. Kodgi, came into being on Wednesday. Mahendra R. Kanthi and T. Thimmegowda are the two members.

The Third Finance Commission's mission is to allocate funds for the three tiers of the panchayati raj institutions and strengthen the institutions by devolving financial and administrative powers to the panchayats. This assumes significance given that since 2004, about Rs. 3,300 crore had devolved directly to the panchayats and the Government has transferred 29 functions and departments to the panchayats for administration.

According to the Karnataka Panchayat Raj Act 1993, the State Government should constitute the State Finance Commission once in every five years to review the financial position of panchayats and to make suitable recommendations to the State on the distribution of funds between the State and local bodies.

Mr. Kodgi, who has quit his post as vice-president of the State Bharatiya Janata Party, said prior to taking charge the commission members had toured several parts of the State, and gathered the opinion and expectations from the people, panchayat representatives, and experts studying the panchayati raj system.

They had also studied the reports of the first and second commissions, and there were plans to call a State-level convention of panchayat representatives at the Vidhana Soudha in October to consider ways and means of empowering and strengthening them, he said.

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