Panchayat Raj Finance Corporation had been first recommended by which among the following committees?

Answer: [B] K. Santhanam Committee (1963)

  1. Santhanam Committee (1963)

The Balwant Rai Mehta Committee was followed by the Santhanam Committee. This committee was formed by the Government of India with terms of  reference as follows:

  1. Handing over resource of revenue in full / part to the PRIs
  2. The criteria of Sanction of grants to them by State Government
  3. Status of the Financial Relations between the different levels of PRIs.

So, in a nutshell, the Santhanam Committee’s scope of study was the financial matters of the PRIs. The important recommendations this committee made  are as follows:

  1. The Panchayati Raj Finance Corporations should be established.
  2. All the grants at the state level should be sent in a consolidated form to various PRIs
  3. Panchayats should have power to levy special tax which should be based upon the land revenue and house tax etc.


This question is a part of GKToday's Integrated IAS General Studies Module