AAP approves constitution of 5th Delhi Finance Commission

The AAP Cabinet today approved the constitution of fifth Delhi Finance Commission even as the recommendations of the fourth panel are yet to be implemented.
The newly approved panel will consist of a chairperson and three members including a member-secretary who will be appointed by the Lt Governor on the recommendation of the Council of Ministers of Delhi.
It has been initially constituted for a period of one year and the appointment of the chairperson and members and its terms and conditions will be notified separately, a government statement said.
Deputy Chief Minister Manish Sisodia had tabled the fourth Finance Commission report during the last winter session of the Delhi Assembly. The recommendations of the fifth Commission are proposed to be effective from April 1.

The Fourth Commission's report, that includes certain recommendations which may result in a confrontation between the Centre and the AAP government, spells out measures needed to improve the financial situation of the civic bodies.
AAP said it will implement the report only after the union government implements the recommendations contained in it which has been asked to ensure that the Union Urban Development Ministry does not deal with matters related to constitution and powers of the local bodies.
In June last year, the Delhi High Court had pulled up the city government saying it cannot wait for acceptance or implementation of the fourth Commission's findings before constituting the fifth one.

The setting up of the fifth Commission has to be done "independently" and every five years, it had observed.