Stating this here today, a spokesman said the government was seriously thinking about giving more powers to the panchayati raj institutions as emphasised by Chief Minister Prem Kumar Dhumal recently.

The spokesman clarified that the state government had constituted the first state Finance Commission in April 1994. According to the provisions contained in Article 243-I and Article 243-Y of the Constitution of India, it is mandatory to constitute a state finance commission once every five years to deliberate on the finances of local government institutions like panchayati raj bodies and urban local bodies. Accordingly, the second state finance commission had to be constituted before April 1999.

He said Centre had requested the state government to constitute a commission in such a manner that the recommendations of the state finance commission could become available to the national Finance Commission. Such an arrangement, Centre indicated, would enable proper distribution of resources to the local government institutions.

The spokesman further clarified that the state Finance Commission was a constitutional body provided for safeguarding the interests of local government institutions and not to harm their interests in any manner.