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The First Mizoram Finance Commission was constituted by the Governor of Mizoram on 30th September, 2011 consisting of Pu Van Hela Pachuau, IAS as its Chairman and Pu Lalthansanga as Member Secretary. The term of reference of the Commission includes making of recommendations on the principles which should govern- the distribution between the state and the Village Councils, Aizawl Municipal Council and the Autonomous District Councils of the net proceeds of the taxes, duties, tolls and fees and the grant-in-aid which may be given to these local bodies from the Consolidated Fund of Mizoram and the measures needed to improve the financial position of these bodies.

In making its recommendations, the Commission shall have regard, among other considerations, to- the need to enhance disaster management at the local levels so as to avoid minor disasters such as landslips, etc at the local levels the need to manage ecology, environment and climate change at the local levels and the need to improve the quality of public expenditure to obtain better outputs and outcomes through innovative monitoring and appraisal system at the local levels.