Former bureaucrat P Raghavendra Rao will head sixth state Finance Commission, an institutional mechanism for division of resources between the government and the Panchayati Raj Institutions (PRIs) and the urban local bodies for a five-year period (2021-22 to 2025-26). Formed under Article 243 of the Constitution and the Haryana Panchayati Raj Act, 1994, the panel has been constituted for a tenure of one year with its headquarters at New Delhi. Serving IAS of Haryana cadre Vikas Gupta will be its member-secretary. A notification issued by Chief Secretary Keshni Anand Arora said the panel would make recommendations on “distribution between the state and zila parishads, panchayat samities and gram panchayats of the net proceeds of taxes, duties, toll and fee leviable by the state.” Besides, it will also take a final call on the determination of taxes, toll and fee which may be assigned to the PRIs and the urban local bodies. It will also decide various forms of grants-in-aid to the PRIs and civic bodies from the consolidated fund of the state. Meanwhile, the panel will also decide on the mechanism for the devolution of resources to the urban local bodies with the ultimate aim of improving their fiscal position. The other aim is to balance the receipts and expenditure of the state and generating surplus capital investment.