Report of 2nd SFC of Mizoram

CONTENTS
Pages
Foreword vi - vii
List of abbreviations viii - xi
List of tables xii – xx
List of charts xxi-xxii

List of annexures xxiii -
xxvii
Chapter 1 Introduction 1
Constitutional role of State Finance Commissions 1
Constitution of Second State Finance Commission of 2
Mizoram
Administrative arrangements 4
Terms of reference 5
Design and format of the Report 7
Chapter 2 Status of implementation of the recommendations of 9
the First State Finance Commission of Mizoram
Constitution of the 1st State Finance Commission 9
Recommendations of the 1st SFC 9
Action Taken Report 15
Chapter 3 Issues, approach and methodology 24
Issues 24
Approach 28
Methodology 30
Chapter 4 State finances 34
Overview of the economy 34
State’s Own Tax Revenue 37
State’s Own Non-Tax Revenue 41
Own Revenue Receipts 43
Transfers from the Centre through devolution of share of 46

Union Taxes
Transfers from the Centre through Grants-in-aid 47
Total Transfers from the Centre 49
~i~
Second State Finance Commission
__________________________________________________________________________________
Capital receipts 52
Revenue Expenditure 54
Committed Expenditure 58
Capital expenditure 61
Total expenditure 63
Outstanding Debt and its sustainability 64
Trends in Deficits/Surpluses 72
Projections of Gross State Domestic Product 76
Estimates of taxable capacity of the State 77
Projections of Own Revenue Receipts 79
Projections of Revenue Expenditure 80
Chapter 5 Review of the status of decentralised governance and 81
devolution
Profile of Village Councils 81
Devolution of functions to Village Councils 83
Functions performed by Village Councils 88
Devolution of functions to Village Councils under 90
Autonomous District Councils
Devolution of functionaries to Village Councils 105
Devolution of funds to Village Councils 107
Devolution of funds from Mahatma Gandhi National Rural 109
Employment Guarantee Scheme (MGNREGS)
Profile of Urban Local Bodies 114
Devolution of functions to Municipalities 118
Devolution of functions to Ward Committees 125
Functions performed by the Aizawl Municipal Corporation 126
Devolution of functions to Local Councils 129
Devolution of funds to Municipalities 131
Devolution of functionaries to Municipalities 133
Profile of Autonomous District Councils 142
Devolution of powers and functions to the Autonomous 144

District Councils
~ ii ~
Contents
__________________________________________________________________________________
Functions performed by the Autonomous District 154

Councils
Devolution of funds to the Autonomous District Councils 157
Devolution of functionaries to the Autonomous District 162

Councils
Chapter 6 Finances of Rural Local Bodies 167
Trends in devolution of funds to Village Councils 167
Own source revenues of Village Councils 171
Implementation of the recommendations of Union and 174

State Finance Commissions
Remuneration of VC Members 178
Issues in the finances of the Village Councils 179
Projections of own source revenues 183
Projections of revenue expenditure 185
Analysis and recommendations 187
Chapter 7 Finances of Urban Local Bodies 192
Summary of revenue receipts and expenditures of the 193

AMC
Own Source Revenues : Tax and Non-Tax 196
Buoyancy of Tax & Non-Tax Revenues 201
Devolution of Funds to AMC 203
Expenditure patterns of AMC 205
Projections of revenue expenditure 220
Chapter 8 Finances of District Councils 227
Summary of budgetary positions of the District Councils 228
Transfers from the State Government to the District 230

Councils
Own Tax Revenues and Efforts 237
Own Non-Tax Revenues 247
Own Revenue Receipts 251
~ iii ~
__________________________________________________________________________________
Measuring Revenue Efforts 254
Impact of the Finance Commissions on the District 260

Councils
Buoyancy of Own Revenues 266
Expenditure patterns of the District Councils 272
Projections of revenue expenditures 285
Chapter 9 Assessment of gaps in financial resources and scheme 293

of fiscal devolution
Assessment of gaps in financial resources of local bodies 293
Composition of the divisible pool 297
Quantum of vertical devolution 298
Horizontal devolution : 1st level 304
Horizontal devolution : 2nd level (Stage 1 and 2) 306
Horizontal devolution : 3rd level (Stage 1 and 2) 314
Horizontal devolution : 4th level 321
Grants-in-aid 323
No separate assignment of taxes, duties, tolls and fees 329
Separate heads for tax devolution and grants-in-aid in the 329

budget
Chapter 10 General observations and other issues in the terms of 331

reference
Disaster management at village/local level 331
Management of ecology, environment and climate change 337

at village/local level
Innovative monitoring and appraisal system at the 342
village/local level
Timely constitution of State Finance Commissions 346
State Finance Commission Cell in Finance Department 348
Grants for autonomous district councils from Union 349

Finance Commission
~ iv ~
Contents
__________________________________________________________________________________
High Level Monitoring Committee 351
Chapter 11 Summary of recommendations 352
Annexures 377
~v~
__________________________________________________________________________________
FOREWORD
The Second State Finance Commission of Mizoram was initially

constituted by the State Government on the 18th April, 2021. Following a subsequent
notification to the effect on the 24th September, 2021, the Chairman and Member
Secretary assumed charge of their respective offices on the 1st October, 2021.
The main tasks of the Commission are governed by the provisions in

articles 243-I and 243-Y of the Constitution, read with the provisions in Section 3 of
the Mizoram Finance Commission Act, 2010. The challenges before the Commission
are uphill since they require an in-depth assessment of the revenue gaps of the local
bodies, fixing the quantum of the divisible pool of resources, and devising a suitable
scheme of devolution that balances the needs of the local bodies as well as the
tremendous revenue expenditure obligations of the State.
The approach of the Commission has been to understand in depth the

finances of the local bodies, viz., the village councils, municipalities, and autonomous
district councils, by undertaking a detailed assessment of their functions, their own
source revenues, their revenue expenditure obligations and arriving at a revenue gap
for all the local bodies. The revenue gaps are attempted to be filled by devising a
transparent and predictable scheme of devolution from the State’s own tax revenues.
Grants-in-aid in the form of revenue deficit grants and performance grants from the
Consolidated Fund of Mizoram are also built into the scheme of devolution. The
criteria adopted by the Commission for horizontal distribution of funds between the
different entities of the local bodies mostly follow the principles of need and equity,
along with one performance criterion in the case of the district councils.
The Commission did its best to do justice to the terms of reference

provided by the State government, while understanding that the same may not meet
the desires of all the stakeholders.
The Commission would like to thank the Hon’ble Chief Minister i/c
Finance Department, Pu Zoramthanga, for giving us the golden opportunity to work
for the State Finance Commission, contributing in one way towards improving the
finances of the local bodies.
Thanks are also due to Pu Vanlal Chhuanga, IA&AS, Principal

Secretary, and his team of officers in the Finance Department for their unstinted
cooperation and support all through the tenure of the Commission.
The stakeholder departments viz., Local Administration, Urban

Development & Poverty Alleviation, District Council & Minority Affairs, Disaster
Management & Rehabilitation, Environment, Forest & Climate Change, Taxation, the
Principal Accountant General and the Deputy Commissioners of all the districts were
very forthcoming in sharing critical information. The Commission is highly indebted
to their valuable contribution.
~ vi ~
Contents
__________________________________________________________________________________
The three district councils, the municipalities and village councils

across the State readily shared important information which greatly assists the
Commission in its deliberation.
The National Informatics Centre, Aizawl readily facilitated several

rounds of consultative meetings through video conferencing with the district level
village council associations. The Commission cannot thank them enough. The
officers and staff of the Commission also deserve a big applause, for without them,
the report could not have seen the light of day.
The Commission believes that the recommendations contained in the

report are swiftly acted upon by the State government so that they result in a
transparent, timely, and predictable devolution of funds to meet the revenue needs
of the local bodies, thus, furthering the ideals of decentralised governance.
Aizawl, the 20th July, 2023 (F. VANLALRUATA)

Chairman
Mizoram
~ vii ~
__________________________________________________________________________________
LIST OF ABBREVIATIONS
ADC Autonomous District Council
AE Advanced Estimates
AG Accountant General
AMC Aizawl Municipal Corporation
AMRUT Atal Mission for Rejuvenation and Urban Transformation
APV Annual Property Value
ARIMA Auto-Regressive Integrated Moving Average
ATI Administrative Training Institute
ATR Action Taken Report
BE Budget Estimates
BMC Biodiversity Management Committee
BOC Board of Councillors
BPL Below Poverty Line
CA Covered Area
CADC Chakma Autonomous District Council
CAG Comptroller and Auditor General
CAGR Compound Annual Growth Rate
Capex Capital Expenditure
CEM Chief Executive Member
CSS Centrally Sponsored Schemes
CWDF Councillor Ward Development Fund
DAY-NULM Deendayal Antyodaya Yojana-National Urban Livelihoods Mission
DDMA District Disaster Management Authority
DDO Drawing and Disbursing Officer
DISHA District Development Coordination and Monitoring Committee
DLAO District Local Administration Officer
DUDO District Urban Development Officer
e-FMS electronic Fund Management System
EM Executive Member
~ viii ~
Contents
__________________________________________________________________________________
EPF Employees Provident Fund
FAI Fiscal Autonomy Index
FDI Fiscal Dependency Index
FPS Fair Price Shop
GDP Gross Domestic Product
GIA Grants-in-aid
GIM Green India Mission
GPDP Gram Panchayat Development Plan
GSDP Gross State Domestic Product
GST Goods and Services Tax
GSVA Gross State Value Added
ICDS Integrated Child Development Services
IEC Information, Education and Communication
IGST Integrated Goods and Services Tax
JFMC Joint Forest Management Committee
LAD Local Administration Department
LADC Lai Autonomous District Council
LC Local Council
LDC Lower Division Clerk
LLDMC Local Level Disaster Management Committee
LMC Lunglei Municipal Council
MADC Mara Autonomous District Council
MCS Mizoram Civil Service
MDC Member of District Council
MF&AS Mizoram Finance & Accounts Service
MGNREGS Mahatma Gandhi National Rural Employment Guarantee Scheme
MINECO Mizoram New Capital Complex
MIRSAC Mizoram State Remote Sensing Application Centre
MLA Member of Legislative Assembly
MP Member of Parliament
~ ix ~
__________________________________________________________________________________
NCDC National Cooperative Development Corporation
NEC North Eastern Council
NEDP New Economic Development Policy
NERCCDIP North Eastern Region Capital Cities Development Investment

Programme
NGO Non-Government Organisation
NIPFP National Institute of Public Finance and Policy
NLCPR Non-Lapsable Central Pool of Resources
NOC No Objection Certificate
NRLM National Rural Livelihood Mission
NSAP National Social Assistance Programme
NSO National Statistical Office
NSSF National Small Savings Fund
NTR Non-Tax Revenue
ONTR Own Non-Tax Revenue
OSR Own Source Revenue
OTR Own Tax Revenue
PCC Plain Cement Concrete
PE Provisional Estimates
PLRC Pawi-Lakher Regional Council
PMAY Pradhan Mantri Awaas Yojana
PMAY-HFA Pradhan Mantri Awaas Yojana - Housing for All
PMGSY Pradhan Mantri Gram Sadak Yojana
RE Revised Estimates
RKVY Rashtriya Krishi Vikas Yojana
RLB Rural Local Body
SC Scheduled Caste
SCA Special Central Assistance
SDG Sustainable Development Goals
SDMA State Disaster Management Authority
SDMF State Disaster Mitigation Fund
~x~
Contents
__________________________________________________________________________________
SDRF State Disaster Response Fund
SFC State Finance Commission
SGST State Goods and Services Tax
SHG Self Help Group
SONTR State's Own Non-Tax Revenue
SOTR State's Own Tax Revenue
SPA Special Plan Assistance
ST Scheduled Tribe
SUP Single Use Plastics
SWMC Solid Waste Management Centre
TE Total Expenditure
TG&S Technical Guidance and Supervision
TRR Total Revenue Receipts
UAM Unit Area Method
UAV Unit Area Value
UDC Upper Division Clerk
ULB Urban Local Body
VAT Value Added Tax
VC Village Council
VEC Village Employment Council
VFDC Village Forest Development Committee
VLA Village Level Assistant
VLDMC Village Level Disaster Management Committee
VLW Village Level Worker
WMA Ways and Means Advance
WRC Wet Rice Cultivation
~ xi ~
__________________________________________________________________________________
LIST OF TABLES
Chapter 2 Status of implementation of recommendations of the Pages
First State Finance Commission of Mizoram
Table 2.1 : Composition of 1st SFC and its tenure 9
Table 2.2 : First stage of horizontal distribution of tax 10

devolution amongst local bodies as recommended by 1st SFC
Table 2.3 : Criteria for second stage of horizontal 10

distribution of tax devolution amongst district councils as
recommended by 1st SFC
Table 2.4 : Second stage of horizontal distribution of tax 11

devolution amongst district councils as recommended by
1st SFC
Table 2.5 : Criteria for third stage of horizontal distribution 11

of tax devolution amongst village councils district-wise as
Table 2.6 : Third stage of horizontal distribution of tax 12

devolution amongst village councils district-wise as
Table 2.7 : Actions taken by the State Government on the 1st 17

SFC Report
Chapter 4 State finances
Table 4.1 : Per Capita Income of Mizoram 36
Table 4.2 : Trends in State’s Own Tax Revenue 38
Table 4.3 : Trends in State’s Own Tax Revenue in Percentage 39
Table 4.4 : Trends in State’s Own Non Tax Revenue 42
Table 4.5 : Trends in State’s Own Non Tax Revenue in 43

Percentage
Table 4.6 : Trends in Own Revenue Receipts and Revenue 44

Buoyancy
Table 4.7 : State’s Own Revenue Receipts vis-à-vis Union 45

Finance Commission projections
Table 4.8 : Trends in devolution of Union Taxes and Duties 47
Table 4.9 : Trends in Grants-in-aid from the Central 48

Government
Table 4.10 : Trends in Revenue Receipts 51
~ xii ~
Contents
__________________________________________________________________________________
Table 4.11 : Trends in Capital receipts 53
Table 4.12 : Trends in revenue expenditure in percentage 56
Table 4.13 : Trends in revenue expenditure 57
Table 4.14 : Trends in Committed expenditure 58
Table 4.15 : Trends in capital expenditure 61
Table 4.16 : Trends in capital expenditure in percentage 62
Table 4.17 : Trends in total expenditure 64
Table 4.18 : Maturity profile of public debt 69
Table 4.19 : Trends in debt sustainability indicators 70
Table 4.20 : Government Guarantees given by the State 72

Government (Principal and Interest combined)
Table 4.21 : Trends in deficit indicators 74
Table 4.22 : Performance with respect to targets under 75

Mizoram FRBM Act, 2006
Table 4.23 : Projections of GSDP for Mizoram 77
Table 4.24 : Estimated regression equation for different taxes 78
Table 4.25 : Estimated taxable capacity of the State 78
Table 4.26 : Buoyancy Estimates for State’s Own Tax 79

Revenue and Own Non-Tax Revenue
Table 4.27 : Projections of State’s Own Tax Revenue and Own 80

Non-Tax Revenue
Table 4.28 : Projections of revenue expenditure for the State 80
Chapter 5 Review of the status of decentralised governance and

devolution
Table 5.1 : Profile of Village Councils in Mizoram 82
Table 5.2 : Comparison of devolution of powers and 91

functions to Village Councils under the three Autonomous
District Councils
Table 5.3 : Functions devolved to Village Councils vis-à-vis 96

functions listed in the Eleventh Schedule of the Constitution
Table 5.4 : Activity mapping of functions proposed for 98

devolution to Village Councils
Table 5.5A : District-wise expenditure on wages and material 111

component under Mahatma Gandhi NREGS for the year
2015-16 and 2016-17
~ xiii ~
__________________________________________________________________________________
Table 5.5B : District-wise expenditure on wages and material 112

2017-18 and 2018-19
Table 5.5C : District-wise expenditure on wages and material 112

2019-20 and 2020-21
Table 5.5D : District-wise expenditure on wages and material 113

2021-22 and 2022-23
Table 5.6A : Comparison of funds from State Finance 113

Commission, Excluded Area Grants and MGNREGS
Table 5.6B : Comparison of funds from Grants-in-aid from 114

State Government, Rural Local Body Grants and MGNREGS
Table 5.7 : Profile of Urban Local Bodies in Mizoram 115
Table 5.8 : List of Wards in Aizawl Municipal Corporation 116

and their population locality wise
Table 5.9 : List of Wards in Lunglei Municipal Council and 118

their population locality wise
Table 5.10 : Transfer of functions to the Municipalities in 119

Mizoram
Table 5.11 : Devolution of funds from the State and Centre 132
to Aizawl Municipal Corporation
Table 5.12 : Strength of officers and staff in Aizawl Municipal 133

Corporation
Table 5.13A : Expenditure on salary of regular employees 134

(2015-16 to 2017-18)
Table 5.13B : Expenditure on salary of regular employees 135

(2018-19 to 2020-21)
Table 5.14 : Expenditure on salary of contract employees 137
Table 5.15 : Expenditure on wages of Muster Roll employees 138
Table 5.16 : Posts created for Lunglei Municipal Council 140
Table 5.17 : Staff transferred or attached to Lunglei 140

Municipal Council
Table 5.18 : Staffing pattern for Lunglei Municipal Council 141
Table 5.19 : Profile of Autonomous District Councils 144
Table 5.20 : Performance of entrusted functions by the ADCs 148
Table 5.21 : Devolution of funds from the State Government 159

to CADC
~ xiv ~
Contents
__________________________________________________________________________________

to LADC

to MADC
Table 5.24 : Strength of regular employees in Chakma 163

Autonomous District Council
Table 5.25 : Strength of regular employees in Lai 163

Table 5.26 : Strength of regular employees in Mara 163

Table 5.27 : Engagement of Muster Roll/Contract employees 164

under Chakma Autonomous District Council

under Lai Autonomous District Council

under Mara Autonomous District Council
Chapter 6 Finances of Rural Local Bodies
Table 6.1 : Trends in devolution of funds to Village Councils 168
Table 6.2 : Central and State fund devolutions to Village 170

Councils-District wise
Table 6.3 : Trends in own tax revenues of village councils 172
Table 6.4 : Trends in own non-tax revenues of village 173

councils
Table 6.5 : Expenditure profile of Village Councils on grants 175

received from 1st State Finance Commission

received from the Central Government

received from 15th Finance Commission
Table 6.8 : Expenditure district-wise on remuneration of 179

Village Councils
Table 6.9 : Projection of own source revenues of village 184

councils at aggregate level
Table 6.10 : Projection of revenue expenditure requirement 186

of village councils at aggregate level
Chapter 7 Finances of Urban Local Bodies
Table 7.1 : Summary of Revenue Receipts and Expenditures 195

of the Aizawl Municipal Corporation
~ xv ~
__________________________________________________________________________________
Table 7.2 : Own Source Revenues of the Aizawl Municipal 200

Corporation
Table 7.3 : Buoyancy of Tax and Non-Tax Revenues in AMC 201
Table 7.4 : Fund Transfers to Aizawl Municipal Corporation 204

from State and Central Government
Table 7.5 : Expenditure patterns of AMC 206
Table 7.6 : Expenditure patterns of AMC in percentage 206
Table 7.7 : Classification of revenue expenditures of AMC 208
Table 7.8 : Classification of revenue expenditures of AMC in 210

percentage
Table 7.9 : Establishment Expenditure of Municipal 213

Corporations – State-wise
Table 7.10 : Administrative Expenses of Municipal 214

Corporations – State-wise
Table 7.11 : Operational and Maintenance Expenditure of 215

Municipal Corporations-State-wise
Table 7.12 : Details of capital expenditures under AMC 217
Table 7.13 : Details of capital expenditures under AMC in 218

percentage
Table 7.14 : Devolution of funds to Local Councils from AMC 219
Table 7.15 : Projections of own revenues of municipalities 220
Table 7.16 : Projections of revenue expenditure requirements 222

of municipalities
Chapter 8 Finances of District Councils
Table 8.1 : Budgetary position of the three District Councils 229

in Mizoram -- Aggregate
Table 8.2 : Trends in State transfers to CADC 230
Table 8.3 : Trends in State transfers to LADC 232
Table 8.4 : Trends in State transfers to MADC 234
Table 8.5A : Central transfers to CADC through the State 235

Government
Table 8.5B : Central transfers to LADC through the State 236

Government
Table 8.5C : Central transfers to MADC through the State 236

Government
~ xvi ~
Contents
__________________________________________________________________________________
Table 8.6 : Trends in Own Tax Revenue Receipts of the 237

District Councils – by Sources
Table 8.7 : Trends in Own Tax Revenue of CADC 239
Table 8.8 : Composition of Own Tax Revenues of CADC in 240

percentage
Table 8.9 : Trends in Own Tax Revenue of LADC 241
Table 8.10 : Composition of Own Tax Revenues of LADC in 242

percentage
Table 8.11 : Trends in Own Tax Revenue of MADC 245
Table 8.12 : Composition of Own Tax Revenues of MADC in 245

percentage
Table 8.13 : Trends in Own Non-Tax Revenue of CADC 249
Table 8.14 : Trends in Own Non-Tax Revenue of LADC 250
Table 8.15 : Trends in Own Non-Tax Revenue of MADC 251
Table 8.16 : Revenue efforts of CADC 255
Table 8.17 : Revenue efforts of LADC 256
Table 8.18 : Revenue efforts of MADC 257
Table 8.19 : Fiscal Dependency Index of the three District 259

Councils in %
Table 8.20 : Fiscal Autonomy Index of the three District 259

Councils in %
Table 8.21 : Trends in real revenue receipts of CADC (2011- 261

2012 prices)
Table 8.22 : Trends in real revenue receipts of LADC (2011- 262

2012 prices)
Table 8.23 : Trends in real revenue receipts of MADC (2011- 263

2012 prices)
Table 8.24 : Annual growth rates of real revenue receipts of 264

CADC (2011-2012 prices)

LADC (2011-2012 prices)

MADC (2011-2012 prices)
Table 8.27 : Estimated Buoyancies of Tax and Non Tax 268

Revenues of the District Councils
~ xvii ~
__________________________________________________________________________________
Table 8.28 : Estimated Buoyancies of major Own Tax 269

Revenues in the District Councils
Table 8.29 : Estimated Buoyancy Coefficients of State Fund 271

Devolution to the District Councils
Table 8.30 : Economic classification of the expenditure of 273

CADC

LADC

MADC
Table 8.33 : Composition of revenue expenditure of CADC 275
Table 8.34 : Composition of revenue expenditure of CADC in 275

percentage
Table 8.35 : Composition of revenue expenditure of LADC 276
Table 8.36 : Composition of revenue expenditure of LADC in 277

percentage
Table 8.37 : Composition of revenue expenditure of MADC 278
Table 8.38 : Composition of revenue expenditure of MADC in 278

percentage
Table 8.39 : Functional classification of expenditure of CADC 280
Table 8.40 : Functional classification of CADC’s expenditure 280

in percentage
Table 8.41 : Functional classification of expenditure of LADC 281
Table 8.42 : Functional classification of LADC’s expenditure 282

in percentage
Table 8.43 : Functional classification of expenditure of 283

MADC
Table 8.44 : Functional classification of MADC’s expenditure 283

in percentage
Table 8.45 : Projections of Own Revenue Receipts of the 284

District Councils
Table 8.46 : Projections of Revenue Expenditures of the 285

District Councils
Chapter 9 Assessment of gaps in financial resources and scheme of
fiscal devolution
Table 9.1 : Assessment of revenue gap for rural local bodies 294
Table 9.2 : Assessment of revenue gap for urban local bodies 295
~ xviii ~
Contents
__________________________________________________________________________________
Table 9.3 : Assessment of revenue gap for autonomous 296

district councils
Table 9.4 : Cost of collection of taxes 299
Table 9.5 : Projections of cost of tax collection 300
Table 9.6 : Recommended devolution as percent of States’ 301

Own Tax Revenue
Table 9.7 : Per capita devolution recommended by State 302

Finance Commissions
Table 9.8 : Quantum of vertical devolution 304
Table 9.9 : 1st level horizontal devolution to local bodies in 305

aggregate
Table 9.10 : 1st stage of 2nd level horizontal devolution for 308
Village Councils district-wise for the years 2021-22 and
2022-23
Table 9.11 : 1st stage of 2nd level horizontal devolution for 309
Village Councils district-wise for the years 2023-24 and
onwards
Table 9.12 : Tax devolution to Village Councils district-wise 310

in the 1st stage of 2nd level of horizontal devolution
Table 9.13 : District-wise share of rural local body grants 310

from 15th Finance Commission
Table 9.14 Determination of development distance 312
Table 9.15 : 1st stage of 3rd level horizontal devolution 315

between urban local bodies
Table 9.16 : Tax devolution to urban local bodies in the 1 st 316

stage of 3rd level of horizontal devolution
Table 9.17 : Share of municipalities upon the urban local 317

body grants of 15th Finance Commission
Table 9.18 : 2nd stage of 3rd level horizontal devolution across 320
Local Councils within Aizawl municipality
Table 9.19 : 2nd stage of 3rd level horizontal devolution across 322
Local Councils within Lunglei municipality
Table 9.20 : 4th level of horizontal devolution across 323

autonomous district councils
Table 9.21 : Tax devolution to autonomous district councils 324

in the 4th level of horizontal devolution
Table 9.22 : Post-devolution revenue deficit grants to 324

~ xix ~
__________________________________________________________________________________
Table 9.23 : Performance grants to rural and urban local 324

bodies
Table 9.24 : Performance grants to autonomous district 327

councils
Table 9.25 Projected own revenue receipts of autonomous 328

district councils
Chapter 10 General observations and other issues in the terms of

reference
Table 10.1 : Distribution of State Disaster Response Fund to 323

districts
Table 10.2 : Distribution of State Disaster Mitigation Fund 332

to districts
Table 10.3 : Trends in utilisation of SDRF by District 334

Disaster Management Authorities
Table 10.4 : Trends in disbursal of SDRF to village/local level 336

authorities
Table 10.5 : Time taken by State Finance Commissions to 347

submit reports
~ xx ~
Contents
__________________________________________________________________________________
LIST OF CHARTS
Chapter 4 State finances Pages
Chart 4.1 : Estimates of GSDP at current prices for Mizoram 35
Chart 4.2 : Trends in Central Tax transfers 49
Chart 4.3 : Trends in composition of Revenue Receipts 51
Chart 4.4 : Trends in capital receipts 54
Chart 4.5 : Trends in revenue expenditure 55
Chart 4.6 : Share of different components of committed 59

expenditure in %
Chart 4.7 : Committed expenditure as percentage of GSDP 60
Chart 4.8 : Capex as percentage of total expenditure 63
Chart 4.9 : Trends in outstanding debt 65
Chart 4.10 : Average interest rate of outstanding public debt in 66

%
Chart 4.11 : Components of outstanding debt 67
Chart 4.12 : Composition of outstanding debt in percentage 67
Chart 4.13 : Trends in deficit indicators relative to GSDP 74

Chapter 5 Review of the status of decentralised governance and
devolution
Chart 5.1 : Devolution of funds to Village Councils as per 1st 107

SFC recommendation
Chart 5.2 : Rural local body grants to Village Councils from the 109
15th Finance Commission
Chapter 6 Finances of Rural Local Bodies
Chart 6.1 : Devolution to Village Councils as per 1st SFC 174

recommendation
Chart 6.2 : Trends in expenditures on the remuneration of 178

Village Councils
Chapter 7 Finances of Urban Local Bodies
Chart 7.1 : Revenue and capital expenditure of AMC in 196

percentage
Chart 7.2 : Trends in tax and non-tax revenue collections of AMC 197
Chapter 8 Finances of District Councils
Chart 8.1 : Composition of State transfers to CADC in 231

percentage
~ xxi ~
__________________________________________________________________________________
Chart 8.2 : Composition of State transfers to LADC in percentage 233
Chart 8.3 : Composition of State transfers to MADC in 234

percentage
Chart 8.4 : Trends in Own Revenue Receipts of CADC 252
Chart 8.5 : Trends in Own Revenue Receipts of LADC 252
Chart 8.6 : Trends in Own Revenue Receipts of MADC 253
Chart 8.7 : Trends in Own Revenue Receipts of District Councils 253

– in aggregate
~ xxii ~
Contents
__________________________________________________________________________________
LIST OF ANNEXURES
Chapter 1 Introduction Pages
Annexure 1.1 : Mizoram Finance Commission Act, 2010 378
Annexure 1.2 : Order regarding constitution of Second 383

Mizoram Finance Commission, appointment of Chairman and
Member Secretary, and the terms of reference
Annexure 1.3 : Notification regarding appointment of new 386

Chairman and Member Secretary along with amendment in
terms of reference
Annexure 1.4 : Mizoram Finance Commission (Salaries and 388

Allowances) Rules, 2010 has amended from time to time
Annexure 1.5 : Notification regarding extension of the term of 392
Second Mizoram Finance Commission
Annexure 1.6 : Notification regarding extension of the term of 393

Second Mizoram Finance Commission
Annexure 1.7 : Notification regarding revalidation of 27 posts 394

created for the Second Mizoram Finance Commission
Annexure 1.8 : Sanction regarding engagement of personal 396

staff for officers of Second Mizoram Finance Commission
Annexure 1.9 : List of Officers and Staff of the Second 398

Mizoram Finance Commission
Annexure 1.10 : Circular regarding functioning of the Second 399

Chapter 2 Status of implementation of recommendations of the
First State Finance Commission of Mizoram
Annexure 2.1 : Explanatory Memorandum as to the action 401

taken on the recommendations of the First Mizoram Finance
Commission
Annexure 2.2 : Notification regarding the constitution of 403

Lunglei Municipal Area
Annexure 2.3 : Office Memorandum regarding mode of 405

release of share of taxes and Non-Plan Revenue Deficit Grant
to Local Bodies of the State
Annexure 2.4 : Notification regarding constitution of 'State 408

Level Monitoring Committee on Local Body Funding'
Annexure 2.5 : Notification regarding entrusting technical 410

guidance and supervision over the audit of Local Bodies to
the C&AG
~ xxiii ~
__________________________________________________________________________________
Chapter 3 Issues, approach and methodology
Annexure 3.1 : Meetings of the Second Mizoram Finance 413

Commission
Annexure 3.2 : Workshop on State Finances, Resource 426

Mobilisation for Local Bodies and Terms of Reference of the
Commission
Annexure 3.3 : Visits of the Commission 430
Chapter 9 Assessment of gaps in financial resources and scheme of

fiscal devolution
Annexure 9.1 : Calculation of deprivation index for the years 434

2021-22 and 2022-23 from the gap report of Mission
Antyodaya, 2020
Annexure 9.2 : Calculation of deprivation index for the years 435

2023-24 and onwards from the gap report of Mission
Antyodaya, 2020
Annexure 9.3 : 2nd stage of 2nd level horizontal devolution 436

across Village Councils in Aizawl district
Annexure 9.4A : 2nd stage of 2nd level horizontal devolution 438

across Village Councils in Lunglei district for the years 2021-
22 and 2022-23
Annexure 9.4B : 2nd stage of 2nd level horizontal devolution 442

across Village Councils in Lunglei district for the years 2023-
24 and onwards

across Village Councils in Kolasib district

across Village Councils in Champhai district

across Village Councils in Mamit district

across Village Councils in Serchhip district

across Village Councils in Saitual district

across Village Councils in Khawzawl district

across Village Councils in Hnahthial district

across Village Councils in Siaha district
~ xxiv ~
Contents
__________________________________________________________________________________

across Village Councils in Lawngtlai district
Annexure 9.14 : Year-wise share of Village Councils under 467

Aizawl district on tax devolutions
Annexure 9.15A : Year-wise share of Village Councils under 469

Lunglei district on tax devolution for the years 2021-22 and
2022-23
Annexure 9.15B : Year-wise share of Village Councils under 472

Lunglei district on tax devolution for the year 2023-24 up to
2025-26

Kolasib district on tax devolution

Champhai district on tax devolution

Mamit district on tax devolution

Serchhip district on tax devolution

Saitual district on tax devolution

Khawzawl district on tax devolution

Hnahthial district on tax devolution

Siaha district on tax devolution

Lawngtlai district on tax devolution

Aizawl district on rural local body grants from 15th Finance
Commission
Annexure 9.26A : Year-wise share of Village Councils under 499

Lunglei district on rural local body grants from 15th Finance
Commission for the year 2021-22 and 2022-23
Annexure 9.26B : Year-wise share of Village Councils under 502

Lunglei district on rural local body grants from 15th Finance
Commission for the year 2023-24 up to 2025-26

Kolasib district on rural local body grants from 15th Finance
Commission
~ xxv ~
__________________________________________________________________________________

Champhai district on rural local body grants from 15th
Finance Commission

Mamit district on rural local body grants from 15th Finance
Commission

Serchhip district on rural local body grants from 15th Finance
Commission

Saitual district on rural local body grants from 15th Finance
Commission

Khawzawl district on rural local body grants from 15th
Finance Commission

Hnahthial district on rural local body grants from 15th
Finance Commission

Siaha district on rural local body grants from 15th Finance
Commission

Lawngtlai district on rural local body grants from 15th
Finance Commission
Annexure 9.36 : Year-wise share of Local Councils on State 527

tax devolution under Aizawl Municipal Corporation
Annexure 9.37 : Year-wise share of Local Councils on State 530

tax devolution under Lunglei Municipal Council
Annexure 9.38 : Calculation of deprivation index for 531

Autonomous District Councils from the gap report of Mission
Antyodaya, 2020
Chapter 10 General observations and other issues in the terms of
reference
Annexure 10.1 : Format for expenditure and sources of 532

revenue/capital receipts of autonomous district councils
Annexure 10.2 : Format for own revenue receipts of 533

Annexure 10.3 : Format for expenditure of autonomous 535
district councils
~ xxvi ~
Contents
__________________________________________________________________________________
Annexure 10.4 : Format for expenditure on salary and 537

allowances of regular employees of autonomous district
councils
Annexure 10.5 : Format for expenditure on 538
wages/remuneration of Contract/Muster Roll employees
under autonomous district councils
Annexure 10.6 : Format for expenditure on pensions of 539
Annexure 10.7 : Format for expenditure and sources of 540

revenue/capital receipts of municipalities
Annexure 10.8 : Format for own revenue receipts of 541

municipalities
Annexure 10.9 : Format for expenditure of municipalities 542
Annexure 10.10 : Format for expenditure on salary and 544

allowances of regular employees of municipalities
Annexure 10.11 : Format for expenditure on 545
wages/remuneration of Contract/Muster Roll employees
under municipalities
Annexure 10.12 : Format for receipts of Village council 546
fund
Annexure 10.13 : Format for expenditure from Village 548
council fund
~ xxvii ~
CHAPTER ONE
INTRODUCTION
Constitutional role of State Finance Commissions
1.1 The 73rd and 74th Constitutional Amendment Acts introduce a new dimension
to India's fiscal federalism, which had previously been dominated by Union-
State fiscal relations. The importance of State to sub-State fiscal relations has
grown in the aftermath of the two Constitutional Amendments. The provisions
relating to the establishment of a State Finance Commission (SFC) along the
lines of the Union Finance Commission are nothing short of a watershed
moment in Indian fiscal federalism, causing significant changes in inter-
governmental fiscal relations.
1.2 In a quasi-federal system like India with varying diversities, a one to one
correspondence between the functional requirements of the various levels of
government and the financial resources is almost impossible. The
Constitution of India in fact prescribes for a deliberate mismatch between
functional requirements and financial resources across the various levels of
government. Majority of the buoyant sources of revenues are indeed with the
Union government while the expenditure requirements of the States are
nothing less than tremendous. In the case of the sub-State level local bodies,
the 73rd and 74th Constitutional Amendment Acts have left the tasks of
devolution of more powers, functions, finances, etc. to the State Legislature
within the overall framework of Part IX and Part IX-A of the Constitution and
the Eleventh and Twelfth Schedules.
1.3 The existence of vertical fiscal imbalances between the State and sub-State
level local bodies and the need to maintain horizontal equity across the local
bodies are perhaps the raison d'être for the establishment of State Finance
Commissions. SFCs are indeed constitutional bodies that come into being on
account of the 73rd and 74th Constitutional Amendment Acts, which primarily
give constitutional legitimacy to the numerous panchayats and municipalities
across the country.
1.4 Largely patterned on the lines of the Union Finance Commissions under
article 280 of the Constitution, the broad responsibilities of SFCs 1 are laid
down in article 243-I and 243Y:
i) To review the finances of local governments in accordance with the

functional responsibilities which include preparation of plans for
economic development and social justice;
1
Oommen, M.A (2022), Essays on Fiscal Decentralisation to Local Governments in India,
Concept Publishing Company Pvt. Ltd., New Delhi
~1~
__________________________________________________________________________________
ii) To fix the size of the divisible pool taking into account the functional
domain of the State on the one hand, and that of the rural local bodies
and urban local bodies, on the other hand;
iii) To broadly evaluate the vertical gap at the various levels taking into
account the tax devolutions, on the one hand, and functional
responsibilities, on the other;
iv) To suggest measures for improving the financial position of the rural
local bodies and urban local bodies which include revenue sharing
and grants-in-aid;
v) To design methods for the inter se distribution of the share of rural
local bodies and urban local bodies on an equitable and efficient basis;
and
vi) To make explicit the principles underlying the measures suggested.
Constitution of Second State Finance Commission of Mizoram
1.5 In the context of Mizoram, the legislation for the establishment of a State
Finance Commission viz. The Mizoram Finance Commission Act, 2010 (17 of
2010) (Annexure 1.1) paved the way for the constitution of a State Finance
Commission with a broader mandate than as envisaged in the Constitution,
covering not only the rural local bodies and urban local bodies but also the
Autonomous District Councils established under the Sixth Schedule to the
Constitution of India. The uniqueness of the SFC in Mizoram is evident from
the fact that it covers within its mandate the autonomous district councils
established under the Sixth Schedule to the Constitution of India while the
mandates of SFCs in other States (such as Assam) having such district
councils do not include the same.
1.6 The preamble to the Mizoram Finance Commission Act, 2010 envisages the
role of the State Finance Commission as to enable all the local bodies,
inclusive of Village Councils, Municipalities and Autonomous District
Councils, to have financial autonomy to perform functions analogous to the
functions of other local bodies constituted under Part IX (Panchayats) and Part
IX-A (Municipalities) of the Constitution while retaining their distinctive tribal
identity protected by the Sixth Schedule.
1.7 The 1st State Finance Commission of Mizoram was, therefore, constituted
under the Mizoram Finance Commission Act, 2010 vide Notification
No.G.11021/13/93-FMC dt. 30.09.2011 consisting of Pu Van Hela Pachuau,
IAS as the Chairman and Pu Lalthansanga, MF&AS as the Member Secretary.
The Commission submitted its report to the Governor on the 19th February,
2015.
1.8 The Second Mizoram State Finance Commission was constituted by the State
Government vide Notification No.G.11021/1/2017-FMC dt.18.04.2021
(Annexure 1.2) in accordance with the provisions in sub-section (1) of section
~2~
Chapter 1 : Introduction
__________________________________________________________________________________
3 of the Mizoram Finance Commission Act, 2010 (17 of 2010). Accordingly,

the State Government appointed as the Chairman Pu Lalthansanga, MF&AS
(Rtd) who had the distinction of serving as the Member Secretary of the First
State Finance Commission of Mizoram after his retirement from the post of
Secretary to the Government of Mizoram, Finance Department along with Pu
F. Vanlalruata, MF&AS (Rtd) as the Member Secretary who also served as the
Secretary to the Government of Mizoram, Finance Department before his
retirement from service. The Chairman and Member Secretary were to assume
office within the first week of May, 2021 and remain in office till the 30th June,
2022 or submission of the report, whichever is earlier.
1.9 However, Pu Lalthansanga could not join the Commission presumably on

account of his ill health while Pu F. Vanlalruata also did not join the
Commission within the stipulated time on account of the inability of the
Chairman to assume office. The State Government, vide Notification
No.G.11021/1/2017-FMC dt. 24.09.2021 (Annexure 1.3), subsequently
appointed Pu F. Vanlalruata, MF&AS (Rtd) as the Chairman and Pu
Lalmalsawma, MF&AS (Rtd) as the Member Secretary who had the distinction
of serving as the Secretary to the Government of Mizoram, Finance
Department and Excise & Narcotics Department before his retirement from
service. The Chairman and Member Secretary were to assume office within the
first week of October, 2021 and remain in office till the 31 st December, 2022
or submission of the report, whichever is earlier.
1.10 Accordingly, Pu F. Vanlalruata and Pu Lalmalsawma assumed charge of office

of the Chairman and Member Secretary of the Second Mizoram State Finance
Commission respectively on the 1st October, 2021. The salaries and
allowances of the Chairman and Member Secretary of the Commission are
governed by the provisions of the Mizoram Finance Commission (Salaries and
Allowances) Rules, 2010 (Annexure 1.4) as amended from time to time. With
the latest amendment of the rules in 2021, the salaries and allowances of the
Chairman and Member Secretary are equivalent to that of the Chief Secretary
and the Principal Secretary to the Government of Mizoram respectively.
1.11 The tenure of the Commission and the time line for submission of the report
of the Commission was initially fixed by the State Government as the 30 th
June, 2022 vide the Order dt.18.04.2021 which, however, was extended to the
31st day of December, 2022 in view of the appointment of a new Chairman and
Member Secretary of the Commission through another Order dated
24.09.2021. The Commission sought an additional six months beyond the 31st
December, 2022 in view of the various hurdles it encountered during the
process of preparation of the report and the State Government subsequently
extended the tenure of the Commission and the timeline for submission of the
report to the 30th June, 2023 vide an Order No.G.11020/5/2021-FMC dt.
05.12.2022 (Annexure 1.5). The tenure of the Commission was further
~3~
__________________________________________________________________________________
extended for another period of one month up to the 31st July, 2023 vide
No.G.11020/5/2021-FMC dt. 05.06.2023 (Annexure 1.6).
Administrative arrangements
1.12 The Commission, however, could not start functioning on full time basis owing
to absence of office accommodation and critical support staff. The first five
months of the Commission were spent in looking for suitable office
accommodation, obtaining clearances for filling up of posts, procurement of
office equipments including vehicles, etc. A suitable office space was
fortunately arranged by the State Government in the first and second floor of
the Directorate of Accounts & Treasuries’ building at Chanmari, Ramhlun
road since majority of the staff shifted to their new office building at Mizoram
New Capital Complex (MINECO), Khatla.
1.13 The task of appointing officers and staff for the Commission was not an easy
one. The State Government accorded approval for filling up 27 posts of
different categories either by means of deputation or Muster Roll co-terminus
basis vide Notification No.A.11020/2/2011-FMC dt. 26.11.2021 (Annexure
1.7). The State Government further approved engagement of 8 number of
posts on co-terminus basis for the personal staff of the Chairman, Member
Secretary and Deputy Secretary of the Commission (Annexure 1.8). To
facilitate the initial establishment of the Commission, Pu C. Lungmuanpuia,
MF&AS, Under Secretary, Finance Department (APF/FMC/PRU) was attached
to the post of Under Secretary in the Commission, in addition to his normal
duties, on the 8th December, 2021. He was appointed as the Drawing and
Disbursing Officer (DDO) of the Commission and his attachment to the
Commission was subsequently extended until further orders. Pu Lalrohlua,
Junior Administrative Grade of MCS also joined the Commission on
deputation as Deputy Secretary on the 17th February, 2022.
1.14 The Commission could not discharge its duties with one or two officers without
the assistance of supporting staff. The Commission lost no time in appointing
clerical staff, drivers and peons on Contract/Muster Roll co-terminus basis
after obtaining clearances from the State Government. The Directorate of
Accounts & Treasuries as well as the Directorate of Institutional Finance &
State Lottery also attached one Assistant, one Data Entry Operator and an
LDC to the Commission to strengthen the clerical support. Nevertheless, the
Commission could not fill up the two posts of Research Officers, six posts of
Research Investigators and two posts of UDC due to non-availability of officers
and staff in the Government. The list of officers and staff of the Commission
is attached at Annexure 1.9.
1.15 Against this backdrop, the first meeting of the Second Mizoram State Finance
Commission was held on the 1st December, 2021 in the office chamber of the
Chairman.
~4~
__________________________________________________________________________________
1.16 A Circular was thereafter issued vide No.A.11013/1/2022-MFC dt.

21.02.2022 (Annexure 1.10) stating that the Commission had started
functioning on full time basis along with a general invitation to all interested
persons to submit their suggestions in connection with the Terms of Reference
of the Commission.
1.17 An official website of the Commission viz. https://mfc.mizoram.gov.in was

created to disseminate information to the concerned stakeholders viz. Village
Councils, Municipalities and Autonomous District Councils along with the
general public who evince interest in the finances of the local bodies. The
templates designed by the Commission for submission of memorandum by
the concerned Departments as well as the local bodies are duly uploaded in
public domain. The website serves as an important repository of information
pertaining to the functioning of the Commission.
Terms of reference
1.18 The scope of work and responsibilities of the Commission are governed by the
terms of reference prescribed by the State Government. The terms of reference
fall within the framework as provided in section 3 of the Mizoram Finance
Commission Act, 2010 which eventually flows from the provisions in article
243-I and 243Y of the Constitution of India.
1.19 The terms of reference of the Second Mizoram State Finance Commission as
provided in the Government Notification No.G.11021/1/2017-FMC
dt.18.04.2021 modified vide No.G.11021/1/2017-FMC dt.18.04.2021 and
No.G.11020/5/2021-FMC dt. 05.12.2022 read as follows:
“3. The Commission shall make the recommendations as to the following matters,
namely :-
(1) The principles which should govern-
(i) The distribution between the State and the Rural Local Bodies,
Urban Bodies and the Autonomous District Councils of the net
proceeds of the taxes, duties, tolls and fees leviable by the State,
which may be divided between them to enable these bodies to
perform the functions assigned, and which may be assigned to it
under any laws in force or orders, and the allocation between the
Rural Local Bodies, Urban Local Bodies and the Autonomous
District Councils at all levels of their respective shares of such
proceeds;
(ii) The determination of the taxes, duties, tolls and fees which may be
assigned to, or appropriated by, the Rural Local Bodies, Urban
Local Bodies and the Autonomous District Councils;
~5~
__________________________________________________________________________________
(iii) The grant-in-aid to the Rural Local Bodies, Urban Local Bodies and
the Autonomous District Councils from the Consolidated Fund of
Mizoram
(2) the measures needed to improve the financial position of the Rural Local
Bodies, Urban Local Bodies and the Autonomous District Councils;
4. In making its recommendations, the Commission shall have regard, among other
considerations, to-
(i) the resources of the State Government, for five years commencing on
01.04.2021, on the basis of levels of taxation and non- tax revenues
likely to be reached at the end of March, 2021;
(ii) the demands on the resources of the State Government, in particular,

on account of civil administration, keeping of law and order, debt
servicing and other committed expenditure and liabilities;
(iii) the objectives of State’s fiscal consolidation road map recommended by

the Fifteenth-Finance Commission, which bind the management of
public finance of Mizoram;
(iv) the functions which may be transferred to the Rural Local Bodies, Urban
Local Bodies and the Autonomous District Councils for the coming five
years with effect from 1st April, 2021 and the manner in which the
existing functionaries of the State Government, who are at the time of
making recommendations are performing the functions recommended
for transfer to the local bodies, shall be transferred to the Rural Local
(v) the taxation efforts of the State Government in relation to levy of all
types of property tax by the local bodies for additional resource
mobilization to enhance the financial independence and capacity of the
local bodies to perform the functions assigned to them;
(vi) the need to enhance disaster management at the local levels so as to

avoid minor disasters such as landslips, etc. at the local levels
(vii) the need to manage ecology, environment and climate change at the
local levels;
(viii) 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;
~6~
__________________________________________________________________________________
5. In making its recommendations on various matters, the Commission shall use the
population data of 2011, in all such cases where population is a factor for
determination of devolution of taxes and duties and grants-in-aids.
6. The Commission shall indicate the basis on which it has arrived at its findings
and make available the estimates of receipts and expenditure of the State
Government and each of the Local bodies
4.1 The Commission shall make its report available latest by 31st July, 2023,
covering the period of five years commencing on the 1st day of April, 2021.”
Design and format of the Report
1.20 The Commission deliberated extensively on the design of the report.

Considering the tasks before the Commission and the wide variety of
stakeholders, the Commission consciously decided to ensure brevity and
simplicity in the design of the report without diluting the substance since the
report pertains to all local bodies right from the Village Councils to the
Municipal Corporations.
1.21 Having decided upon the design of the report, the recommendations of the
Second State Finance Commission of Mizoram consist of the following
chapters:
a) Chapter 1 - Introduction: This chapter will consist of an introduction on the

constitution of the Second Mizoram State Finance Commission, its terms of
reference as prescribed by the State Government in line with the provisions of
the Mizoram Finance Commission Act, 2010 along with the design and format
of the report.
b) Chapter 2 – Status of implementation of recommendations of the First

State Finance Commission of Mizoram: This chapter highlights the main
recommendations of the First Mizoram State Finance Commission and the
actions taken, including actions yet to be taken, by the State Government
upon the recommendations so accepted.
c) Chapter 3 – Issues, Approach and Methodology: This chapter deals with

identification and subsequent discussion of the issues before the Commission,
approach and methodology adopted by the Commission to tackle the issues
in hand within the broad framework of the terms of reference.
d) Chapter 4 – State Finances: This chapter deals with an assessment of the

finances of the State of Mizoram from the financial year 2015-16 to 2020-21
along with projections made for the year 2022-23 till 2025-26. An in depth
analysis of the various parameters of State finances such as an overview of
the economy, own revenues receipts, transfer from the Central Government,
~7~
__________________________________________________________________________________
trends in revenue and capital expenditure, outstanding liabilities of the State,

subsidies, performance under the Mizoram Fiscal Responsibility and Budget
Management Act, 2006 as amended, etc. forms part of this chapter.
e) Chapter 5 - Review of the status of Decentralized Governance and

Devolution: This chapter examines the status of decentralised governance in
general and focusses on the devolution of funds, functions and functionaries
to all the local bodies in the third tier of governance in the context of Mizoram
viz. Village Councils, Municipalities and District Councils.
f) Chapter 6 - Finances of Rural Local Bodies: Assessment of the finances of

the Village Councils is the theme in this chapter taking the district as a whole
for such assessment.
g) Chapter 7 - Finances of Urban Local Bodies: Assessment of the finances of

Aizawl Municipal Corporation and the newly constituted Lunglei Municipal
Council is found in this chapter.
h) Chapter 8 - Finances of District Councils: This chapter deals with

assessment of the finances of the District Councils of Lai, Mara and Chakma.
i) Chapter 9 - Assessment of Gaps in Financial Resources and Scheme of

Fiscal Devolution: This chapter is the core of the report and consists of the
scheme for vertical devolution of funds to local bodies from the revenues of
the State Government and the horizontal inter se allocation of resources
between the local bodies viz. Village Councils, Municipalities and District
Councils.
j) Chapter 10 - General Observations and other issues in Terms of

Reference: This chapter deals with general observations on multiple issues
facing the local bodies in Mizoram including measures to strengthen local self
governments and other issues mentioned in the terms of reference such as
issues pertaining to disaster management and climate change at local levels.
k) Chapter 11 - Summary of Recommendations: This is a summary of the

recommendations contained in various chapters taken together.
~8~
CHAPTER TWO
STATUS OF IMPLEMENTATION OF THE RECOMMENDATIONS OF THE FIRST

STATE FINANCE COMMISSION OF MIZORAM
Constitution of the 1st State Finance Commission
2.1 Since the 73rd Constitution Amendment Act of 1992 exempts the State from
the establishment of Panchayati Raj Institutions and the 74th Constitution
Amendment Act also exempts the tribal areas under the Sixth Schedule from
the establishment of Municipalities, it took the State of Mizoram some time to
establish a State Finance Commission. The establishment of an urban local
body in the capital city of Aizawl in 2008 appears to have necessitated the
establishment of a State Finance Commission, as envisaged in the
Constitution, resulting in the passage of the Mizoram Finance Commission
Act, 2010 (17 of 2010). Such being the case, the first State Finance
Commission was constituted by the State Government towards the later part
of the year 2011.
2.2 The composition of the First State Finance Commission (1st SFC) of Mizoram
and its tenure is presented in Table 2.1 below:
Table 2.1 Composition of 1st SFC and its tenure
Date of
Member Date of Award
Commission Chairman submission
Secretary constitution period
of report
1st State
Van Hela 30th 19th
Finance 2015-16 to
Pachuau, Lalthansanga September, February,
Commission 2019-20
IAS 2011 2015
of Mizoram
2.3 The report of the 1st SFC was duly submitted to the Hon’ble Governor on the
19th February, 2015 and subsequently considered by the Council of Ministers
in its meeting on 14th December, 2015. The recommendations of the
Commission together with an explanatory memorandum as to the actions
taken thereon were laid on the table of the House in the eight session of the
Seventh Legislative Assembly on the 21st March, 2016 as mandated under
clause (4) of article 243-I read with clause (2) of article 243Y of the
Constitution and section 3(2) of the Mizoram Finance Commission Act, 2010.
Recommendations of the 1st SFC
2.4 Following its mandate as prescribed in the Constitution and the Act of 2010,
the 1st SFC made several crucial recommendations in its maiden report. The
main points of the recommendations of the 1st SFC are highlighted below for
reference:
~9~
__________________________________________________________________________________
a) Vertical devolution of 15% of the State’s Own Tax Revenue with local bodies
in aggregate viz. Village Councils, Aizawl Municipal Council and Autonomous
District Councils. In addition, vertical sharing of at least 5% of the excise duty
to the local bodies from the date of the levy of the tax.
b) Horizontal distribution of the 15% tax devolution amongst the local bodies in
three stages. In the first stage, the inter se share from the 15% vertical
devolution is recommended amongst the Autonomous District Councils in
aggregate, Village Councils in aggregate and Aizawl Municipal Council in
percentage terms as 58.33%, 24.17% and 17.50% respectively on the basis of
the following numerical calculations in table 2.2.
Table 2.2 First stage of horizontal distribution of tax devolution amongst

local bodies as recommended by 1st SFC
Annual
Population xz/sum
Average y/sum
Sl. (in (xz)*100
Name Assessed (Y)*100 x*z = xz
No aggregate) = inter se
Expenditure =z
=x share
(₹ in lakh) = y
1 2 3 4 5 6 7
1 ADCs 1,74,468 25,503.35 78.84 1,37,55,686.57 58.33
2 VCs 8,03,790 2,294.33 7.09 95,701,219.22 24.17

3 AMC 2,93,416 4,549.08 14.06 41,26,447.36 17.50
Total 12,71,674.00 32,346.76 100.00 2,35,83,353.16 100.00
Source: Report of 1st SFC of Mizoram
c) In the second stage of horizontal devolution, the inter se share of the respective
Autonomous District Councils from the aggregate share of the ADCs is
determined on the basis of the following criteria with weightages as shown
below.
Table 2.3 Criteria for second stage of horizontal distribution of tax devolution
amongst district councils as recommended by 1st SFC
Sl. No. Criteria Weightage

1. Population (Census 2011) 40%
2. Area 30%
3. Distance from ADC headquarters to the State capital 10%
4. Literacy 10%
5. Village electrified 10%
On the basis of the above criteria, the percentage share of an individual ADC
is calculated as LADC – 41.97%, CADC – 23.96% and MADC – 34.07%.
~ 10 ~
Chapter 2 : Implementation of the recommendations of 1st SFC
__________________________________________________________________________________
Table 2.4 Second stage of horizontal distribution of tax devolution amongst

district councils as recommended by 1st SFC
Particulars LADC CADC MADC Total
1 2 3 4 5
Population (Numbers) 72587 45307 56574 1,74,468
Weight 16.64191 10.38746 12.97063
Area (sq. km) 1870.75 686.25 1,399.00 3,956.00
Weight 14.186678 5.2041203 10.609201
Distance (km) 257 276 328 861
Weight 2.9849013 3.2055749 3.8095238
Literacy (persons) 45909 16,592 42,233 1,04,734
Weight 4.3833903 1.58420379 4.0324059

Village electrified
57 54 40 151
(Numbers)
Weight 3.7748344 3.5761589 2.6490066
Total weight
41.97 23.96 34.07 100
(Inter se share)
d) In the third stage of horizontal distribution, the inter se share of the Village
Councils district-wise from the aggregate share of the Village Councils is
determined on the basis of the following criteria with weightages as shown
below:
Table 2.5 Criteria for third stage of horizontal distribution of tax devolution
amongst village councils district-wise as recommended by 1st SFC
Sl. No. Criteria Weightage

1. Non-municipal population (Census 2011) 40%
2. Non-municipal area 20%
3. Per capita income distance (from highest income district in 10%
₹)
4. Road length 5%
5. Number of electrified villages 5%
6. Number of streetlight connections 10%
7. Number of water connection 10%
On the basis of the above criteria, the percentage share of the Village Councils
district-wise is calculated as: Mamit district – 9.80%, Kolasib district –
10.73%, Aizawl district – 12.32%, Champhai district – 16.42%, Serchhip
~ 11 ~
__________________________________________________________________________________
district – 7.66%, Lunglei district – 22.27%, Lawngtlai district – 12.99% and

Siaha district – 7.81%.
Table 2.6 Third stage of horizontal distribution of tax devolution amongst

village councils district-wise as recommended by 1st SFC
Particulars
Champhai
Lawngtlai
Serchhip
Lunglei
Kolasib
Aizawl
Mamit
Saiha
Total
1 2 3 4 5 6 7 8 9 10
Population
(non- 86364 83955 106893 125745 64937 161428 117894 56574 803790
municipal)
Weight 4.298 4.178 5.319 6.258 3.232 8.033 5.867 2.815
Area (non-
3025.00 1382.00 3446.09 3446.09 1421.00 4536.00 2557.00 1399.00 21212.2
municipal)
Weight 2.852 1.303 3.249 3.249 1.34 4.277 2.411 1.319
Adjusted
962 7931 959 11781 2823 7647 9942 7315 49360
PCID
Weight 0.195 1.607 0.198 2.387 0.572 1.549 2.014 1.482 10.004
Road length 218.31 165.2 390.75 285.59 129.36 383.04 329.55 373.19 2274.99
Weight 0.48 0.363 0.859 0.628 0.284 0.842 0.724 0.82

Villages
75 37 93 87 36 139 111 40 618
electrified
Weight 0.607 0.299 0.752 0.704 0.291 1.125 0.898 0.324
Street lights 619 1059 1075 1389 675 2312 338 259 7726
Weight 0.801 1.371 1.391 1.798 0.874 2.999 0.437 0.335 10.006
Water
1770 5272 1680 5307 3459 11243 1996 2317 33044
connections
Weight 0.536 1.595 0.508 1.606 1.047 3.402 0.604 0.701
Total weight
(inter se 9.8 10.73 12.32 16.42 7.66 22.27 12.99 7.81 100
share)
e) Within the third stage of devolution, the share of a Village Council in a district
is recommended to be determined on the basis of population following the
formula
𝑋𝑖 = (𝑃𝑖 /𝐷) ∗ 100
where 𝑋𝑖 is the tax share of a particular Village Council, 𝑃𝑖 is the population

of that village and D is the non-municipal population of the district. The
determination of the absolute share of an individual VC outside the ADC area
is recommended to be entrusted to the LAD of the State Government. The LAD
will implement this recommendation on advice of a Committee to be set up to
~ 12 ~
__________________________________________________________________________________
oversee the implementation of all the recommendations of the Mizoram

Finance Commission. For VCs within the ADC area the similar function will be
done by the District Council Affairs Department.
f) Share of the VCs of Lawngtlai and Siaha districts is to be transferred to the

respective Autonomous District Council who, in turn, will transfer the absolute
share to the individual VC. Transfer from the ADC to a VC is to be made
effective within 7 days from the date of receipt of the devolution amount from
the State Government, failing which the amount would be deducted from the
next payment due to the ADC from the State Government and the amount will
be directly transferred to the concerned VC by the State Government.
g) Non-plan deficit of the individual ADC would be reduced by the amount of

devolution of the State taxes coupled with the local body grants of the Union
Finance Commission to supplement the resources of the State. In case there
is still the deficit in existence, this will be bridged by the grants in aid of the
State Government. In the deficit financing mechanism, the recommended State
tax devolution together with the grants in aid by the State Government should
exceed the amount of salary expenditure of the individual ADC in a given year.
The financing mechanism of the non-plan deficits of the VCs and AMCs will
follow the norm recommended for the ADCs as above.
h) Asian Development Bank assisted NERCCDIP would enable the State

Government to impose property tax by the Aizawl Municipal Council from the
year 2015-16. Out of the surveyed properties, AMC is to reach a level of
annual collection of property tax at ₹9.00 crore rupees at least in 2019-20
gradually from a modest collection of ₹5.00 crore in 2015-16. The step up is
assumed to be linear.
i) A list of 13 subjects along with corresponding functional activities are

recommended to be devolved in order to enable the Village Councils in
Mizoram to function as democratic institution of self-government. The
subjects include drinking water supply; roads, culverts, bridges; public health
and sanitation; primary education; rural housing; agriculture; social welfare;
family welfare; markets and fairs; rural electrification; public distribution
system; animal husbandry, dairying and poultry; and forest and environment.
j) Posting of a Secretary of the rank of Assistant Grade to look after bigger Village
Councils of 301 households or more and a cluster of two or more Village
Councils in other cases to make the village administration more accountable
and responsive. The Village Level Worker (VLW)/Village Level Assistant (VLA)
shall be posted in smaller villages.
k) Capacity building initiatives to be vigorously undertaken by both Rural

Development Department and the Local Administration Department. State
Institute of Rural Development (SIRD) to be extended to provide Extension
~ 13 ~
__________________________________________________________________________________
Training Centre in some important places to undertake massive capacity

building of members of elected Local Bodies and officials.
l) State Government to gradually put in place standards for delivery of all

essential services provided by local bodies. For a start, State Government
must notify or cause AMC to notify by the end of a fiscal year (31 March) the
service standards for four service sectors-water supply, sewerage, storm water
drainage, and solid waste management proposed to be achieved by them by
the end of the succeeding fiscal year.
m) Functional devolution of remaining subjects listed in the Twelfth Schedule of

the Constitution to the AMC in a time bound manner to enable them to
perform analogous functions of other urban local bodies of the country and
to handle the problems of growing urbanization with a holistic point of view.
n) Constitution of a Municipal Council in Lunglei Town in view of the need to

have better civic amenities and considering the emergence of urban areas in
various parts of the State of Mizoram.
o) Municipal boards/nagar panchayats initially be formed in the remaining 6

district headquarters. Alternatively, all towns with population of 7000 (Mamit
is the smallest district headquarters having slightly more than 7000
population) be allowed to have municipal board/nagar panchayat to avoid the
anomaly and at the same time to enable them to have core civic amenities.
p) Functions have been entrusted to the Autonomous District Councils

particularly vide notification dated 29th August, 2011 containing 19 functional
subjects and activity mapping for each subject. The State Government to
ensure that the environment and forest and the elementary education are re-
included in these functional activity mapping as per the notification dated
22nd September, 1993 and be adhered to as far as the Autonomous District
Councils are concerned.
q) Redefining the present rates of user charges on public utility services

particularly power, water supply and sanitations etc. by linking these at least
to the operation and maintenance cost including constitution of an
independent regulatory body for fixation of water supply charges.
r) Setting up a Committee by the State Government with an expert member to

examine the issues in tax reforms of VCs to provide greater taxation power.
s) Village Councils to move towards bank transactions instead of cash

transactions for the sake of transparency and accountability.
t) Empowering Village Councils to collect taxes on agricultural activities, minor

forest produce, etc. and fees from the village markets to enhance their own
revenue receipts. They may also be authorised to levy penalty on
~ 14 ~
__________________________________________________________________________________
environmental pollutions including collection of fees on commercial

exploitation of Forest Resources.
u) A well-structured capacity building in disaster response be initiated from the

grass root level involving the volunteers of the local bodies with the volunteers
having 24 hour accessibility of wireless communication to a designated
control room.
v) State Government to include a comprehensive and structured guideline in the

State Disaster Management Plan to involve the local bodies in the disaster
management and the awareness programme.
w) Local bodies to adopt an accounting framework and codification pattern

consistent with the Model Panchayat Accounting System with assistance of
the State Accountant General.
x) To ensure the control of the Comptroller and Auditor General over the audit of
accounts of the local bodies. The State Governments should accept the
technical guidance and supervision (TG&S) of the C&AG in a structured
manner in consultation with the State AG.
y) The audit cycle starting from conduct of audit through submission of report
and ending with taking action on the audit findings be limited to not more
than one year after the close of the concerned financial year.
z) The Government of Mizoram may evolve an archetype of the 73rd Amendment,

appropriately extension of Panchayats (Extension to Scheduled Areas) Act,
1996 (PESA) so that the State may have Village Council entity in which
provisions for devolution of functions, funds and functionaries may be evoked.
aa) Formation of the District Planning Committee in each district of the State for
preparation of a transparent and credible plan at the State level properly
backed by the need of the local Governments.
bb) A permanent secretariat or cell of the State Finance Commission be created

in the Secretariat of Finance Department as a link between the First
Commission and the Second Commission with the existing Secretariat staff
headed by an officer.
Action Taken Report
2.5 It may be reiterated that the recommendations of the 1st SFC were duly
considered by the Council of Ministers in its meeting on the 14 th December,
2015 wherein the Cabinet expressed appreciation of the work done by the
Commission. The Council of Ministers decided that the recommendations of
~ 15 ~
__________________________________________________________________________________
the Commission will be taken up for examination/implementation on a case

to case basis.
2.6 An Explanatory Memorandum as to the actions taken on the

recommendations of the 1st SFC, commonly known as the Action Taken Report
(ATR), was duly laid before the State Legislature (Annexure 2.1). The ATR laid
before the State Legislature did not specifically mention the recommendations
that were either accepted or not accepted but instead reiterated the decision
of the Council of Ministers that the recommendations of the Commission will
be taken up for examination/implementation on a case-by-case basis. Such
being the case, there are problems in making an assessment of the
implementation of the recommendations of the 1st SFC. It may be pertinent to
reiterate that clause (4) of article 243-I read with clause (2) of article 243Y of
the Constitution and section 3(2) of the Mizoram Finance Commission Act,
2010 mandate that an explanatory memorandum on the actions taken are
duly laid before the State Legislature.
2.7 The Union Finance Minister’s Action Taken Report on the recommendations
of the 15th Finance Commission was specific in nature, stating which
recommendations were accepted, rejected, or to be examined separately in due
course. Further, the ATR presented by Union Finance Minister also included
a point relating to implementation of the accepted recommendations of the
15th Finance Commission, stating that necessary orders would be issued after
obtaining the approval of the President. These crucial points were perhaps
missing in the ATR of the State Government on the recommendations of the
1st SFC of Mizoram.
2.8 To ensure that there are no ambiguities on the acceptance or otherwise

of the State Government on the multiple recommendations of the
Commission, we recommend that the Explanatory Memorandum as to
the actions taken on the recommendations of the State Finance
Commission shall clearly state whether or not the recommendations are
either accepted or not accepted or to be considered/examined in due
course on all the recommendations. In addition, a paragraph(s) on the
implementation of the accepted recommendations including the actions
proposed to be taken on the recommendations that are to be examined
separately/in due course be included in the Explanatory Memorandum
as mandated by the Constitution.
2.9 The Commission sought an action taken report on the recommendations of

the 1st SFC from the State Government in Finance Department. A summary of
the actions taken on the basis of the recommendations of the Commission is
shown in Table 2.7 below while recommendations upon which no action is
taken by the stakeholders are left out:
~ 16 ~
__________________________________________________________________________________
Table 2.7 Actions taken by the State Government on the 1st SFC Report
Whether or
not the
If accepted,
Para Recommendation recommen-
action taken
dation is
accepted?
3.20 Functional devolution of Has not Most of the functions listed in
3.21 remaining subjects listed in the been the Twelfth Schedule had been
Twelfth Schedule of the considered transferred to AMC except
by the water supply for domestic,
Constitution to the AMC in a
Government industrial & commercial
time bound manner to enable . purposes; roads & bridges; fire
them to perform analogous services.
functions of other urban local
bodies of the country and to
handle the problems of growing
urbanization with a holistic point
of view.
3.23 State Government to gradually Has not Service level benchmarks for
put in place standards for been four sectors viz., water supply,
delivery of all essential services considered sewerage, storm water
by the drainage and solid waste
provided by local bodies. For a
Government management had been notified
start, State Government must . by the State Government in
notify or cause AMC to notify by Urban Development & Poverty
the end of a fiscal year (31 Alleviation Department for the
March) the service standards for years 2016-17, 2017-18, 2018-
four service sectors-water 19, 2019-20 and even in
subsequent years in
supply, sewerage, storm water
compliance with the
drainage, and solid waste recommendation of the 14th
management proposed to be Finance Commission.
achieved by them by the end of
the succeeding fiscal year
3.26 Constitution of a Municipal Has not The State Government in

Council in Lunglei Town in view been Urban Development and
of the need to have better civic considered Poverty Alleviation Department
by the notified the municipal area
amenities and considering the
Government consisting of 24 localities
emergence of urban areas in . under Lunglei Municipal
various parts of the State of Council vide
Mizoram. No.B.13017/114/2021-
UD&PA dt. 01.03.2022
(Annexure 2.2)
4.62 Functions have been entrusted Has not The Department of District
to the Autonomous District been Council and Minority Affairs,
Councils particularly vide considered during the course of the
by the consultative meeting with the
notification dated 29th August,
Government Commission on 12th August,
2011 containing 19 functional . 2022, clarified that the
subjects and activity mapping for notification for entrustment of
each subject. The State functions was issued on the
~ 17 ~
__________________________________________________________________________________
Government to ensure that the basis of the recommendation of

environment and forest and the the Standing Inquiry
elementary education are re- Commission for the three
Autonomous District Councils
included in these functional
headed by Pu T. Gupta, IAS
activity mapping as per the (Rtd). In addition, the
notification dated 22nd functions under Environment
September, 1993 and be adhered & Forest Department and
to as far as the Autonomous School Education Department
District Councils are concerned were not included for
entrustment to the ADCs in
the Notification dated
29.08.2011 since the functions
under these Departments had
been fully transferred to the
ADCs on the basis of the
previous Government
Notification No.B.17012/3/92-
DCA dt. 22.09.1993 published
in the Mizoram Gazette issue
No. 198 dt. 27.09.1993.
5.23 Strengthening tax efforts of the Has not The Indian Stamp (Mizoram
State Government to enhance been Amendment) Act, 2016 was
the own revenue by considered enacted to enhance own
by the source revenues by amending
restructuring or revisiting the
Government article 23 of the aforesaid Act.
present tax regime. There is . The amendment enhanced
scope to explore the possibility to Stamp duty for conveyance
revise the rate of tax under deed at the rate of 2% of
motor vehicles (highly buoyant in market value but the same has
the State). Stamps and been suspended and kept in
abeyance till date vide
registration duty can be made an
notification
effective tax handle in the State No.A.46022/2/2013-REV
following the queue of other dated 02.11.2016.
States.
6.17 Village Councils to move towards Has not The State Government in
bank transactions instead of cash been Finance Department asserted
transactions for the sake of considered that rural local body grants
transparency and accountability. by the received from Union Finance
Government Commission have been
. transferred directly and
credited into the bank account
of Village Councils.
7.24 Asian Development Bank Has not Property tax levied, collected
7.26 assisted NERCCDIP would been and appropriated by the AMC.
enable the State Government to considered Year-wise property tax
by the collections, however, fell short
impose property tax by the
Government of the 1st SFC projections,
Aizawl Municipal Council from . presumably on account of the
the year 2015-16. Out of the suspension of the property tax
surveyed properties, AMC to on vacant land by the State
reach a level of annual collection Government and inefficiencies
~ 18 ~
__________________________________________________________________________________
of property tax at ₹9.00 crore in revenue collection. Year-

rupees at least in 2019-20 wise receipts of property tax
gradually from a modest are:
collection of ₹5.00 crore in 2015-
a) 2014-15 – ₹1.94 lakh
16. The step up is assumed to be b) 2015-16 – ₹114.18 lakh
linear. c) 2016-17 – ₹220.40 lakh
d) 2017-18 – ₹275.53 lakh
e) 2018-19 – ₹297.07 lakh
f) 2019-20 – ₹344.06 lakh
7.27 On projection of non-tax revenue Has not The AMC generates non-tax
of AMC, the total parking fees in been revenues from various sources,
the base year estimate has been considered prominent among them being
by the receipts from parking fees,
kept at the level of 2014-15
Government licensing fees, building
rounded off to ₹60 lakh and . permits, advertisement and
grown at a rate of 6% per annum hoardings, bank interests, etc.
for the forecast period as The receipts from non-tax
inflation effect. The base year revenues did exceed the 1st
estimate of building permission SFC projections as shown
below:
fees has been kept at the level of
₹ in lakh
2014-15 and grown at a rate of Year 1st SFC Actuals
6% per annum. Licensing 2015-16 155.84 174.39
regulation fees has been kept at 2016-17 167.03 277.57
2014-15 level and grown at a 2017-18 179.09 244.57
2018-19 192.07 571.29
rate of 6% per annum. The base
2019-20 206.06 308.93
year number of Bank interest
has been arrived at a level of the
average of the last two years
(2014-15 and 2013-14) and
grown at a rate of 6% per
annum. For other fees, the same
norm is followed as in the case of
bank interest.
9.6 Vertical devolution of 15% of the Accepted The State Government

State’s Own Tax Revenue with accepted and implemented the
local bodies in aggregate viz. recommendation by issuing an
OM No.A.11011/1/2016-FMC
Village Councils, Aizawl
dt. 04.05.2016 (Annexure 2.3)
Municipal Council and wherein 15% share of the
Autonomous District Councils. In State’s Own Tax Revenue
addition, vertical sharing of at (SOTR) was to be devolved to
least 5% of the excise duty to the local bodies over and above the
local bodies from the date of the grants-in-aid to the local
levy of the tax. bodies flowing either from the
State or Central Government.
However, separate devolution
of 5% of excise duty was not
implemented since the State
Government considered that
the excise duty formed part of
the SOTR and thus was
~ 19 ~
__________________________________________________________________________________
already included in the 15%

divisible pool.
The State Government vide

paragraph 2 and 3 of the
aforesaid OM stipulated that
the share of local bodies from
tax devolution shall be
released in 14 instalments
while amounts recommended
for the year 2015-16 shall be
treated to have lapsed.
9.8 Horizontal distribution of the 15% Accepted The State Government

9.9 tax devolution amongst the local accepted and implemented the
9.10 bodies in three stages. In the first recommendation by issuing an
OM No.A.11011/1/2016-FMC
stage, the inter se share from the
dt. 04.05.2016 wherein 15%
15% vertical devolution is vertical devolution from the
recommended amongst the State’s Own Tax Revenue was
Autonomous District Councils in decided to be distributed
aggregate, Village Councils in horizontally amongst the local
aggregate and Aizawl Municipal bodies in aggregate as follows:
Council in percentage terms as a) Autonomous District
Councils – 58.33%
58.33%, 24.17% and 17.50%
b) Village Councils of the
respectively. 8 districts – 24.17%
c) Aizawl Municipal
Council – 17.50%
9.13 In the second stage of horizontal Accepted The State Government
devolution, the inter se share of accepted and implemented the
the respective Autonomous recommendation by issuing an
OM No.A.11011/1/2016-FMC
District Councils from the
dt. 04.05.2016 wherein
aggregate share of the ADCs is 58.33% of the 15% vertical
determined on the basis of certain devolution was decided to be
criteria with suitable weights distributed horizontally
attached to each criteria amongst the ADCs as follows:
a) LADC – 41.97%
b) MADC – 34.07%
c) CADC – 23.96%
9.16 In the third stage of horizontal Accepted The State Government

9.17 distribution, the inter se share of accepted and implemented the
the Village Councils district-wise recommendation by issuing an
OM No.A.11011/1/2016-FMC
from the aggregate share of the
dt. 04.05.2016 wherein
Village Councils is determined on 24.17% of the 15% vertical
the basis of certain criteria and devolution was decided to be
suitable weights attached to each distributed horizontally
criteria. amongst the VCs in the 8
districts as follows:
a) Mamit district – 9.80%

b) Kolasib district –
10.73%
c) Aizawl district – 12.32%
~ 20 ~
__________________________________________________________________________________
d) Champhai district –
16.42%
e) Serchhip district –
7.66%
f) Lunglei district –
22.27%
g) Lawngtlai district –
12.99%
h) Siaha district – 7.81%.
9.14 The individual VC in a district will Accepted The State Government

9.18 be drawing its share from the accepted and implemented the
respective share of the district recommendation by issuing an
OM No.A.11011/1/2016-FMC
solely on the basis of its
dt. 04.05.2016.
population size. The tax share of
an individual VC in a year may be In addition, a State Level
determined on the basis of the Monitoring Committee on Local
following formula: Body Funding to oversee
implementation of the
𝑋𝑖 = (𝑃𝑖 /𝐷) ∗ 100 recommendations of the 1st
SFC was constituted by the
𝑋𝑖 is the tax share of a particular State Government vide
Village Council, 𝑃𝑖 is the No.G.11022/19/2016-FMC dt.
population of that village and D 29.06.2016. (Annexure 2.4)
is the non-municipal population
of the district and * denotes
multiplication.
The determination of the absolute

share of a VC outside the ADC
area to be entrusted to the LAD of
the State Government. The LAD
will implement this
recommendation on advice of a
Committee to be set up to oversee
the implementation of all the
recommendations of the Mizoram
Finance Commission. For VCs
within the ADC area the similar
function will be done by the
District Council Affairs
Department.
9.15 Share of the VCs of Lawngtlai and Accepted The State Government
Siaha districts to be transferred accepted and implemented the
to the respective ADC who in turn recommendation by issuing a
suitable instruction in
will transfer the absolute share to
paragraph 6 of the OM
the individual VC. Transfer from No.A.11011/1/2016-FMC dt.
the ADC to a VC is to be made 04.05.2016.
effective to the concerned VC
within 7 days from the date of
~ 21 ~
__________________________________________________________________________________
receipt of the devolution amount

from the State Government,
failing which the amount would
be deducted from the next
payment due to the ADC from the
State Government and the
amount will be directly
transferred to the concerned VC
by the State Government.
9.22 Non-plan deficit of the individual Accepted The State Government

9.23 ADC would be reduced by the accepted and implemented the
9.24 amount of devolution of the State recommendation by issuing a
suitable instruction in
taxes coupled with the local body
paragraph 7 of the OM
grants of the Union Finance No.A.11011/1/2016-FMC dt.
Commission to supplement the 04.05.2016.
resources of the State. In case
there is still the deficit in The State Government vide
existence, this will be bridged by paragraph 2 and 3 of the
aforesaid OM stipulated that
the grants in aid of the State
the non-plan revenue deficit
Government. In the deficit grants shall be released in
financing mechanism, the monthly instalments while
recommended State tax amounts recommended for the
devolution together with the year 2015-16 shall be treated
grants in aid by the State to have lapsed.
Government should exceed the
amount of salary expenditure of
the individual ADC in a given
year. The financing mechanism of
the non-plan deficits of the VCs
and AMCs will follow the norm
recommended for the ADCs as
above.
10.29 To ensure the control of the Has not The State Government vide
C&AG over the audit of accounts been notification No.
of the local bodies, the State considered No.G.11023/4/2008-FCC dt
01.06.2011 (Annexure 2.5)
Governments should accept the
entrusted the Technical
technical guidance and Guidance and Supervision over
supervision (TG&S) of the C&AG the audit of all the local bodies
in a structured manner in within the State of Mizoram to
consultation with the State AG if the Comptroller & Auditor
not already done. General of India. The
Accountant General is
empowered to conduct the
Annual Technical
Inspection/Audit under the
provisions of section 20 of the
C&AG (Duties, Powers and
Conditions of Service) Act,
1971.
~ 22 ~
__________________________________________________________________________________
11.33 A permanent secretariat or cell of Has not Though this recommendation

the State Finance Commission be been was not considered in detail,
created in the Secretariat of considered the State Government asserted
that Finance Commission &
Finance Department as a link
Monitoring Cell in the Finance
between the First Commission Department also functions as a
and the Second Commission with Cell of SFC and act as a link
the existing Secretariat staff between the 1st SFC and the
headed by an officer 2nd SFC
Source: Finance Department
2.10 A cursory glance at Table 2.7 reveals that the State Government did not
consider a number of the Commission's recommendations, despite actions
taken on such recommendations as if they were accepted by the Government.
Several recommendations appear to have received insufficient attention. It
should also be noted that the 1st SFC submitted their report after working
tirelessly for more than three years. In this case, we would recommend that
the State Government consider all of the State Finance Commission's
recommendations in the larger interest of local governments, even after
laying the Action Taken Report before the State Legislature.
~ 23 ~
CHAPTER THREE
ISSUES, APPROACH AND METHODOLOGY
Issues
3.1 The issues before the Commission largely emanate from the Constitutional
provisions relating to the constitution of the State Finance Commissions
coupled with the provisions of the Mizoram Finance Commission Act, 2010.
The Terms of Reference specific to the Second State Finance Commission as
notified by the Governor of Mizoram along with the issues raised by the local
bodies are indeed critical issues for consideration of the Commission. After
delving into the above constitutional and statutory provisions and in the wake
of wide ranging consultations with various stakeholders such as the local
bodies and Government departments, the Commission identified the following
issues for consideration.
3.2 The extent of vertical devolution (or vertical sharing) of the net proceeds of the
taxes, duties, tolls and fees leviable by the State between the State
Government on the one hand and the local bodies consisting of the rural local
bodies, urban local bodies and autonomous district councils on the other
hand is one of the foremost issues for consideration of the Commission. A fine
balancing act has to be undertaken by the Commission taking into account
the major demands on the resources of the State government, especially on
account of civil administration, maintenance of law and order, debt servicing
and other committed expenditures while at the same time doing justice to the
basic requirements of the local bodies to enable them to have financial
autonomy to perform functions analogous to the functions of other local
bodies constituted under Part IX (Panchayats) and Part IX-A (Municipalities)
of the Constitution.
3.3 The determination of the specific taxes, duties, tolls and fees leviable by the
State that have to be distributed between the State and the local bodies is
another critical issue. In other words, the determination of the divisible pool
of resources within the ambit of the constitutional and statutory provisions is
an important issue for the Commission. The major items of tax revenues levied
by the State include goods & services tax, sales tax, taxes on vehicles, land
revenue, passenger and goods tax, stamp duty and registration fees and state
excise while the main items of non-tax revenue for the State largely consist of
interest receipts, dividends and profits, mining receipts, departmental receipts
in the forms of fees, fines, etc. The 1st State Finance Commission of Mizoram
recommended global sharing of the State Own Tax Revenues between the
State and local bodies to the exclusion of the State Own Non-Tax Revenues.
In this context, it may be pertinent to mention that sharing of taxes, duties,
tolls and fees leviable by the State is permissible as per the provisions in
section 3(1)(a) of the Mizoram Finance Commission Act, 2010 read with the
~ 24 ~
Chapter 3 : Issues, approach and methodology
__________________________________________________________________________________
provisions in clause 1(a) of article 243-I and clause 1(a) of article 243Y of the
Constitution of India.
3.4 Distribution of the net proceeds of taxes, duties, tolls and fees between the
State government and the local bodies and the horizontal distribution between
the various local bodies come within the purview of the Commission. In this
context, the constitutional and statutory provision is to distribute the “net
proceeds” of the divisible pool of resources. Article 279 of the Constitution
defines the term “net proceeds” in relation to any tax or duty as the proceeds
thereof reduced by the cost of collection and the “net proceeds” has to be
ascertained and certified by the Comptroller and Auditor General of India. The
1st State Finance Commission of Mizoram distributed the gross State Own Tax
Revenues without applying the “net proceeds” of the divisible pool of
resources. Whether or not the divisible pool of resources has to be distributed
by applying the calculation of “net proceeds” is an important question for the
Commission on account of the comparatively low collections of States Own
Tax and Non-Tax Revenues vis-a-vis the high cost of collection of the taxes,
duties and fees levied by the State.
3.5 Horizontal devolution between the rural local bodies, urban local bodies and
the autonomous district councils of the net proceeds of taxes, duties, tolls and
fees which forms the divisible pool of resources and the subsequent allocation
of their respective shares at all levels in such local bodies is another important
issue emerging from the Terms of Reference in line with the Mizoram Finance
Commission Act, 2010. Horizontal devolution between the various local bodies
has to be determined with a view to (a) meet the revenue gap of the local bodies
to help them discharge their statutory and obligatory functions, (b) provide
horizontal equity by providing higher share to relatively poorer local bodies
through well-defined criteria with suitable weightage assigned to each criteria.
In short, a simple, practical, equitable and efficient scheme of fiscal devolution
has to be devised to cater to the varying needs of local bodies across the State.
3.6 Determination of the taxes, duties, tolls and fees which may be assigned to,
or appropriated by, the rural local bodies, urban local bodies and the
autonomous district councils is another issue emanating from the Terms of
Reference in line with the constitutional and statutory provisions. Certain
State Finance Commissions assigned certain taxes or duties to the local bodies
apart from the normal tax devolution. There are also State Finance
Commissions which did not recommend assignment of specific taxes, duties,
tolls or fees to the local bodies largely on account of global sharing of the own
revenues of the State with the local bodies since it is considered
administratively more convenient and efficient to collect such taxes at the
State level and share the net proceeds thereof with the local bodies and taking
into account the fact that global sharing has brought all the State taxes within
the fold of the divisible pool.
~ 25 ~
__________________________________________________________________________________
3.7 It is beyond doubt that the local bodies heavily depend upon tax devolution
as well as grants-in-aid from the State Government apart from local body
grants recommended by the 15th Finance Commission as also grants in the
form of Centrally Sponsored Schemes from the Government of India. Their
own sources of revenue are abysmally low although there are apparently
enabling provisions in their respective laws to garner more tax revenues.
Measures to augment the own source revenue of the local bodies with a view
to strengthen their financial position form an important component of the
Terms of Reference. The issue needs to be dwelt at length with a view to
strengthen the very institution of the local bodies and enable them to deliver
better civic services to citizens on the lines of the well established rural and
urban local bodies of other States in the Indian Union.
3.8 Grants-in-aid are important sources of fund to the local bodies across the
country, be it the rural local bodies or the urban local bodies. The tax
devolution largely does not suffice the resource gap of the local bodies in the
wake of the increasing statutory and developmental roles of the local bodies.
The scheme of fiscal devolution has to necessarily take into account the
principles of equity, performance and expenditure needs for determination of
the grants-in-aid for the rural local bodies, urban local bodies and the
autonomous district councils including allocation of grants at each level.
3.9 The State Government had entrusted certain functions under 19 Departments
of the Government of Mizoram to the three autonomous district councils of
Lai, Mara and Chakma vide No.C.13016/3/2010-DCA dt 29.08.2011
published in the Mizoram Gazette extra ordinary issue No. 388 dt.
01.09.2011. The aforesaid Notification enjoins the Administrative
Departments concerned to ensure that the entrusted functions are not
undertaken again by their offices in the autonomous district council areas
with only skeleton staff retained there for the purpose of statistical
requirements and coordination with a view to eliminate duplication of
functions by the State Government Departments and the autonomous district
councils. The extent of implementation of the aforesaid Gazette Notification is
an issue before the Commission. The Commission is, in fact, mandated by the
terms of reference to have regard, while making its recommendations, to the
functions which may be transferred to the autonomous district councils for
the coming five years with effect from 1st April, 2021 and the manner in which
the existing functionaries of the State Government shall be transferred to the
autonomous district councils.
3.10 The terms of reference also enjoin the Commission to have regard, among
other considerations, 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 issue of managing disaster at the village/local levels assumes greater
importance in view of the observation of the 15th Finance Commission which
states that making panchayats the nodal agency for relief and rehabilitation
~ 26 ~
__________________________________________________________________________________
will result in improved planning, coordination and monitoring. In this context,

a broad understanding and assessment of the role of Village councils/Village
Level Disaster Management Committee/Local Councils/Local Level Disaster
Management Committee/urban local bodies/autonomous district councils in
the various stages of disaster management viz. prevention, mitigation,
preparedness, response, restoration and rehabilitation reconstruction work
assumes importance for the Commission.
3.11 The need to improve the quality of public expenditure including tax
devolutions and grants-in aid from the Union and State Finance Commissions
to obtain better outputs and outcomes through innovative monitoring and
appraisal system at the local levels is another issue in hand for the
Commission. The Directorate of Local Fund Audit under the State Government
is conducting the routine financial audit with its minimal staff strength while
the Technical Guidance and Supervision of audit of all local bodies is
entrusted by the State Government to the Comptroller and Auditor General of
India. Against this backdrop, a mechanism for undertaking innovative
monitoring of public expenditures incurred by local bodies including the
increasingly popular method of performance audit viz. “social audit” assumes
importance in the mind of the Commission.
3.12 Management of ecology, environment and climate change at the local levels
with possible involvement of the local bodies at their own levels is another
issue for consideration of the Commission. About 84.53% of the total
geographical area of the State is classified as “forests” in the India State of
Forest Report-2021 while our forests have gradually suffered serious
degradation due to the traditional practice of shifting cultivation, uncontrolled
fire and unregulated felling of trees. Though the State is rich in biodiversity,
it has very limited dense forest. Against this backdrop, conservation and
preservation of biological resources, including village safety reserve and village
supply reserves which are under the management of the respective village
councils, maintenance of ecological balance and tackling emerging issues due
to climate change are increasingly becoming critical.
3.13 Article 280(3)(bb) and (c) of the Constitution, inserted vide the 73rd and 74th
Constitutional Amendment Acts, enjoin upon the Union Finance Commission
to recommend measures needed to augment the Consolidated Fund of a State
to supplement the resources of the Panchayats and Municipalities in a State
on the basis of the recommendations of the State Finance Commission.
Measures to supplement the resources of the rural local bodies, urban local
bodies and the autonomous district councils in the context of Mizoram have
to be looked into for consideration of the 16th Finance Commission, as and
when the same is constituted by the President of India.
~ 27 ~
__________________________________________________________________________________
Approach
3.14 There are vertical and horizontal fiscal imbalances that exist between the State
and the sub-state level local bodies viz. the rural local bodies, urban local
bodies and the autonomous district councils in the context of Mizoram.
Vertical imbalance essentially refers to the mismatch between the levels of
government in responsibilities and resources. Horizontal imbalance basically
refers to the presence of geographical and fiscal inequities. These imbalances
exist largely on account of the widely differing fiscal capabilities, resource
endowments, development history besides extreme disparities in
infrastructural facilities. Owing to the differences in the resource base
available and the status of developments across the more than 800 rural local
bodies, the two urban local bodies and the three autonomous district councils,
the approach of the Commission, therefore, is to design a scheme of devolution
that is equitable, efficient, transparent and predictable. Designing a transfer
system that seeks to achieve the constitutional goal of creating “institutions
of self-government” is vital within the overall objective of reducing vertical and
horizontal fiscal imbalances.
3.15 The State Finance Commission is the institutional agency which has the
responsibility to facilitate and promote the golden rule of cooperative
federalism viz. that every citizen should be assured a minimum of public
services irrespective of his/her choice of residential location. The need to
provide a minimum level of public services of standard quality at the local level
further necessitates the determination of the normative cost of providing such
public services. The approach of the Commission, therefore, is to arrive at the
expenditure requirement of the local bodies to facilitate delivery of statutory
and obligatory functions. In other words, expenditure assignment to enable
delivery of basic public services is the preferred approach so that no citizen is
discriminated for the choice of his/her residential location.
3.16 A review of the finances of the village councils, municipalities and the three
autonomous district councils is considered critical to understand the revenue
and capital receipts vis-a-vis the revenue and capital expenditures of the local
bodies. The receipts are largely in the form of mobilisation of own source
revenue through tax and non-tax revenues, transfers from the Union Finance
Commissions as also the State Finance Commission and grants through
Centrally Sponsored Schemes and the State Government. A proper financial
review provides the basis and background for designing an effective transfer
system. The approach of the Commission, thus, consists of undertaking an
assessment of the finances of the rural local bodies, urban local bodies and
the autonomous district councils for the period starting from 2015-16 i.e. the
first year of the award period of the 1st State Finance Commission till the year
2020-21 and outlining projections for the year 2021-22 up to 2025-26 i.e. the
final year of the award period for the 2nd State Finance Commission.
~ 28 ~
__________________________________________________________________________________
3.17 A review of the finances of the local bodies necessarily entails a corresponding
review of the finances of the State Government since the tax devolutions and
grants-in-aid essentially flow from the Consolidated Fund of Mizoram. The
Terms of Reference also enjoin the Commission to have regard, among others,
to the following points while making its recommendations:
i) the resources of the State Government, for five years commencing on

ii) the demands on the resources of the State Government, in particular, on

account of civil administration, keeping of law and order, debt servicing
and other committed expenditure and liabilities;
iii) the objectives of State’s fiscal consolidation road map recommended by

the Fifteenth-Finance Commission, which bind the management of public
finance of Mizoram;
3.18 In view of the terms of reference as outlined above, the approach of the
Commission is to have an in depth assessment of the State finances covering
an overview of the economy, revenue and capital receipts, revenue and capital
expenditures, taxation efforts of the State, devolution from the Union Finance
Commission, committed expenditures consisting of salaries, pensions and
interest payments, outstanding liabilities of the State, and progress towards
achieving the fiscal consolidation path as per the Mizoram Fiscal
Responsibility and Budget Management Act, 2006 as amended from time to
time.
3.19 The terms of reference also require the Commission to have regard, among
other considerations, to the functions which may be transferred to the rural
local bodies, urban local bodies and the autonomous district councils for the
coming five years with effect from 1st April, 2021 and the manner in which the
existing functionaries of the State government shall be transferred to the rural
local bodies, urban local bodies and the autonomous district councils. In other
words, a review of the functional devolution to local bodies is a moot question
for the Commission. In this regard, it is pertinent to mention that the State
Government, through a Gazette Notification Issue No. 388 dated 01.09.2011,
had entrusted certain functions under 19 Departments of the Government of
Mizoram to the three autonomous district councils. The aforesaid Notification
enjoins the Administrative Departments concerned to ensure that the
entrusted functions are not undertaken again by their offices in the district
council areas with only skeleton staff retained there for the purpose of
statistical requirements and coordination with a view to eliminate duplication
of functions by the State Government Departments and the autonomous
district councils. On similar lines, the State Government had transferred 15
out of the 18 functions listed in the Twelfth Schedule of the Constitution to
~ 29 ~
__________________________________________________________________________________
the municipalities while three functions are yet to be transferred. In view of

the above stated points, the approach of the Commission is to review the
various stages of implementation of functional devolution to the respective
local bodies and make suitable recommendations for transfer of functions in
actual terms to the respective local bodies as envisaged in the Constitution as
well as Government Notifications.
3.20 The rural local bodies and urban local bodies rely heavily upon local body
grants from the Union Finance Commissions together with the tax devolutions
and grants-in-aid recommended by the State Finance Commission. Arguably
no concrete steps were taken to augment the own source revenue of the local
bodies other than the collection of property tax by the Aizawl Municipal
Corporation which fell far short of the projections by the 1st State Finance
Commission. Receipts from collection of animal tax by the rural local bodies
are also minimal in actual terms. Heavy dependence on local body grants and
tax devolution fosters a dependency syndrome amongst the local bodies. The
objective of making the local bodies to have financial autonomy as stipulated
in the preamble to the Mizoram Finance Commission Act, 2010 will be far-
fetched if the local bodies remain a substantially grant-supported local bodies.
The picture in the case of autonomous district councils is not too different.
The generation of own source revenue in the case of the district councils is
nothing but meagre and they continue to heavily depend upon tax devolutions
as also grants from the State government. In the wake of the low revenue
mobilisation of the local bodies, the approach of the Commission is to accord
high priority to mobilizing the own source revenues comprising tax and non-
tax revenue sources thereby enabling them to attain a certain level of financial
autonomy.
Methodology
3.21 In view of the issues identified for consideration as well as the approach
adopted by the Commission, the Commission decided to follow the
methodologies as mentioned hereunder.
3.22 Collection of critical information from the concerned stakeholders in the form
of memorandum/notes is the first strategy of the Commission. The main
stakeholders viz. autonomous district councils (ADCs) of Lai, Mara and
Chakma and Aizawl Municipal Corporation (AMC) were requested, during the
month of March, 2022, to submit a comprehensive memorandum as per a
format prescribed by the Commission. The formats for submission of
memorandum are largely on the basis of the terms of reference with an intent
to capture the transfer of resources from the Central/State Governments,
generation of own source revenue, revenue and capital expenditures incurred
in the previous years with projections for the coming years and status of their
accounts including audit. The respective ADCs and the AMC gave
considerable effort to prepare their memorandum within a limited period of
~ 30 ~
__________________________________________________________________________________
time. It is worthwhile to mention that memoranda duly prepared were received

in the Commission within the month of May, 2022. With elections to the
Lunglei Municipal Council (LMC) held on the 29th March, 2023 and the newly
elected Councillors sworn in on the 18th April, 2023, the Commission also
sought a comprehensive memorandum from the LMC as it considered unwise
to finalise the recommendations of the Commission without obtaining the
views of the Lunglei municipality. The LMC lost no time in preparing their
submissions and a detailed memorandum was duly submitted on the 19th
May, 2023.
3.23 The village councils (VCs) are the only rural local bodies in the context of
Mizoram, discharging their multiple administrative, developmental and
judicial functions akin to the Gram Panchayats established under the 73 rd
Constitutional Amendment Act. The Commission sought their input by
devising a five Schedule format for collection of information pertaining to the
financial position of the village councils including their functions. These
standard formats were distributed to all the village councils across the State,
except village councils in Siaha and Lawngtlai Districts, through their
respective Deputy Commissioners during the first week of April, 2022. The
prescribed formats in respect of village councils within the territorial
jurisdiction of the district councils were distributed through their respective
Executive Secretaries since the VCs themselves are the creation of the district
councils. Collection of information covering more than 800 village councils
with varying levels of capacity is no easy task. The Commission, however,
adopted this methodology to better understand the finances of the VCs
especially their own source revenue. With the active support and cooperation
of the Deputy Commissioners and the Executive Secretaries of the respective
district councils, these crucial data were received from all the districts before
the end of June, 2022.
3.24 The Commission sought inputs from several Government departments with
the objective of seeking their views and comments on various issues in the
terms of reference. Memorandum including notes in a prescribed format was
sought from the Local Administration Department, Urban Development &
Poverty Alleviation Department, Finance Department, Taxation Department,
Disaster Management & Rehabilitation Department, Environment, Forest &
Climate Change Department and Planning & Programme Implementation
Department. The notes and memorandum from the concerned stakeholder
departments prove critical for the Commission in addressing the various
issues in the terms of reference. In addition, the Principal Accountant General,
Mizoram was also requested to furnish information in a standard format
pertaining to the finances of the State and it is worth mentioning that a
detailed 21 schedule format highlighting various aspects of State finance was
duly furnished in less than a month, more than a week ahead of the stipulated
time! All Deputy Commissioners were also requested to furnish information
pertaining to disaster management since they are the chairman of the District
~ 31 ~
__________________________________________________________________________________
Disaster Management Authority, the statutory body established in pursuance

of the Disaster Management Act, 2005.
3.25 Due importance is accorded by the Commission to holding consultative

meetings with the stakeholders, be it the local bodies or the stakeholder
departments or representatives of local body associations. Consultative
meetings were held with the officials from Local Administration Department,
Urban Development & Poverty Alleviation Department and District Council &
Minority Affairs Department. District Village Councils Associations of Aizawl,
Lunglei, Kolasib, Mamit, Champhai, Serchhip, Khawzawl, Hnahthial were also
duly consulted via video conferencing in collaboration with the respective
Deputy Commissioners of the districts. The list of consultative meetings and
the official as well as non-official members present in such meetings is
enclosed in Annexure 3.1. These consultations, as a matter of fact, proved
useful in firming up novel ideas for bridging the vertical as well as horizontal
fiscal imbalances that exist across the State and sub-state local governments.
3.26 The Commission also assigned two study projects on the subject of (a) the
devolution of funds to rural local bodies, urban local bodies and autonomous
district councils including measures to strengthen their financial position,
and (b) aspects of State finance and the local bodies in Mizoram. The findings
of the studies provide critical inputs to the Commission for undertaking an
assessment of the finances of the village councils, urban local bodies and the
autonomous district councils together with measures for augmenting the own
revenue receipts of the local bodies across the State.
3.27 With a view to have wider consultations and to elicit a better understanding
of the terms of reference which bind the working of the Commission, a one-
day workshop on an important subject matter viz. “State Finances, Resource
Mobilization for Local Bodies and the terms of reference of the Commission”
was organised on the 18th October, 2022 at the Conference Room of Aijal Club.
The workshop helped cement deeper understanding of the nuances of State
finances which have a direct bearing on the finances of the local bodies.
Experts and stakeholders from the Finance Department, Local Administration
Department, Urban Development & Poverty Alleviation Department, District
Council & Minority Affairs Department, Planning & Programme
Implementation Department, Taxation Department, the three District
Councils, Mizoram University, Economics Association of Mizoram, Aizawl
Municipal Corporation, Lunglei Municipal Council, Aizawl City Local Council
Association, Mizoram Village Council Association as well as the
representatives of Former Legislators Association of Mizoram participated in
the deliberations. The list of participants is enclosed in Annexure 3.2.
3.28 The Commission also undertook field visits to the local bodies to have a first-
hand knowledge of the workings of the local bodies and hear their
observations on various issues confronting them. These visits enabled the
~ 32 ~
__________________________________________________________________________________
Commission to understand and appreciate the ground realities being faced by

the local bodies. The Commission also paid a visit to the headquarters of the
Aizawl Municipal Corporation on the 22nd July, 2022 with extensive
consultations on various issues pertaining to the finances of the municipality.
Meeting with the office bearers of the Aizawl City Local Council Associations
was also held separately during the course of the visit. We also visited Saitual
District on the 29th June, 2022 to hear the representatives of the District level
Village Council Association under the chairmanship of the Deputy
Commissioner. The list of visits undertaken by the Commission including the
list of official and non-official members attending the consultative meetings
are attached at Annexure 3.3.
3.29 We are required to make projections of own source revenues, the revenue
expenditure requirements of the local bodies as also that of the State
government to arrive at an equitable scheme of devolution. In this case, well
established statistical methods such as the time series econometric model of
Auto-Regressive Integrated Moving Average (ARIMA) along with the standard
Compound Annual Growth Rate (CAGR) formula are put to extensive use by
the Commission to make projections of important economic variables within
its award period. For undertaking an assessment of the buoyancy of revenues
and making estimates of the taxable capacity, the Commission also resorts to
the log-linear regression model to facilitate the assessments.
3.30 The Commission extensively utilises Government data in public domain as

well as data sourced from reliable government agencies for devising the
scheme of devolution across the local bodies. Mention may be made of the
following data sources:
i) Demographic data from the decadal Census conducted by the

Registrar General and Census Commissioner of India
(https://censusindia.gov.in);
ii) Data pertaining to the geographical area of different administrative

units from the Mizoram State Remote Sensing Application Centre
(MIRSAC) under Planning & Programme Implementation Department;
iii) Below Poverty Line (BPL) baseline survey, 2015-16 from Directorate of
Economic & Statistics (https://des.mizoram.gov.in) under Planning &
Programme Implementation Department;
iv) Mission Antyodaya survey, 2020, undertaken by the Ministry of Rural

Development, Government of India, available at the website
https://missionantyodaya.nic.in. The primary objective of Mission
Antyodaya is to survey and collect village infrastructure and service
data for nearly 600,000 villages in the country.
~ 33 ~
CHAPTER FOUR
STATE FINANCES
4.1 The terms of reference mandate the Commission to have regard, among
others, to the following points while making its recommendations:
i) the resources of the State Government, for five years commencing on

ii) the demands on the resources of the State Government, in particular, on

and other committed expenditure and liabilities;
iii) the objectives of State’s fiscal consolidation road map recommended by

the Fifteenth-Finance Commission, which bind the management of public
finance of Mizoram;
4.2 In view of the aforementioned terms of reference, the Commission, therefore,

attempts at a broad assessment of the various facets of State finances covering
a broad overview of the economy of Mizoram, trends in the own revenue
receipts, trends in capital receipts, transfer from the Centre on account of
devolution and grants-in-aid on the basis of the recommendations of the
Union Finance Commissions, taxation efforts of the State, an analysis of
revenue and capital expenditures including committed expenditures
consisting of salaries, pensions and interest payments, outstanding liabilities
of the State and progress towards achieving the fiscal consolidation path as
per the Mizoram Fiscal Responsibility and Budget Management Act, 2006 as
amended.
Overview of the economy
4.3 The estimates of Gross Domestic Product over a period of time reveal the
structural changes that are taking place in the economy and the sector-wise
composition and its contribution to economic growth. The consequential
impact of the estimates of income aggregates like gross state domestic
product, per capita income, and the growth pattern of macro-aggregates plays
a vital role in understanding the performance of the economy.
4.4 The economy of Mizoram has been continuously growing over the years as
reflected through the figures of Gross State Domestic Product (GSDP). There
has been a substantial growth in the GSDP at current prices from ₹15,138.86
crore in 2015-16 to ₹24,244.58 crore (provisional) during 2020-21 with a
compound annual growth rate of 10.8% over the years. The year 2019 was a
difficult year for the world economy since the global financial crisis of 2009
~ 34 ~
Chapter 4 : State finances
__________________________________________________________________________________
and the Indian economy slowing down with a GDP growth rate of 4% in 2019-
20, the economy of Mizoram cannot remain resilient against the events
influencing the Indian economy. The impact of the Covid19 pandemic was also
strongly felt from the beginning of the first quarter of the year 2020-21
resulting in a decline in the GSDP at current prices in the year 2020-21 by -
2.98%.
4.5 The trend in the estimates of GSDP since the year 2015-16 to the advanced
estimates for the year 2021-22 is presented in the chart below:
Chart 4.1 Estimates of GSDP at current prices for Mizoram

30,000.00 20
17.47
25,000.00
14.04
15
13.56
13.03
12.76
12.06
20,000.00
Percentage
₹ in crores
28480.10
10
24,244.58
21,912.08
24,989.60
19,385.33
15,000.00
17,191.91
15,138.86
5
10,000.00
0
5,000.00
- (2.98) -5
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
GSDP at current prices Growth rate
Source: Directorate of Economic & Statistics
4.6 Throughout the years, the contribution of Tertiary (or Services) Sector remains
dominant over the rest of the sectors with the percentage of Gross State Value
Added (GSVA) by the sector ranging from 47.85% in 2015-16 to 44.25% in the
year 2021-22. The Tertiary Sector primarily comprises transport, storage,
communication & services related to broadcasting, trade, hotels &
restaurants, financial services, real estate, public administration, other
services, etc. In this sector, public administration and other services continue
to have the highest contribution to the GSVA. The proportionately high
contribution of the Tertiary sector indicates that this is the sector that drives
the economy of Mizoram.
4.7 The Primary Sector, largely comprising agriculture, forestry, fishing, mining
and quarrying, and the Secondary Sector, which comprises manufacturing,
construction, electricity, gas, water supply and other utility services,
contribute more or less the same to the overall Gross State Value Added
(GSVA) since the year 2017-18. The contribution of the Primary Sector to the
GSVA gradually decreases from a high of 31.97% in 2015-16 to 27.30% in
2021-22 where forestry and logging are the main driving force of the sector.
~ 35 ~
__________________________________________________________________________________
The contribution of crops and fishing slowly declined during the years 2015-
16 to 2021-22 while that of livestock gradually improved during the same
period. With more than half of the population deriving the greater part of their
income from agriculture, faster growth in agriculture is necessary to increase
their income.
4.8 The contribution of the Secondary Sector gradually increases from 20.19% in
2015-16 to 28.45% in 2021-22. In this sector, the main drivers are electricity,
gas, water supply and other utility services and the construction sub-sector.
4.9 The per capita income of the State progressively increases in tune with the
growth of the GSDP over the years as shown by the data presented below, but
the same decreases since the year 2020-21, possibly on account of the
contraction in the economy as a result of the all pervasive influence of Covid19
pandemic:
Table 4.1 Per Capita Income of Mizoram

Years Per capita income in ₹
2015-16 1,14,055
2016-17 1,27,107
2017-18 1,55,222
2018-19 1,64,708
2019-20 1,86,133
2020-21 (Projected) 1,79,503
2021-22 (Advanced) 1,75,896
Source: Economic Survey 2022-23
4.10 The impact of the Covid19 pandemic on the Indian economy was felt in all
corners of the society robbing people of their livelihoods and the country
reeling under major economic slowdown. The economy of the State cannot
remain impervious to the wide ranging impact of the pandemic. The
coronavirus pandemic has caused severe disruptive impact on both demand
and supply side. Tourism, hospitality, aviation and transport are among the
worst affected sectors that are facing the maximum brunt of the present crisis.
The crisis also has adverse impacts on the well-being of women, youths, the
informally employed, daily wage earners and those who work in contact-
intensive sectors. On the supply side, shutdown of shops and hotels, delay in
supply of goods, migration of labour force, etc. have immensely affected the
manufacturing sectors. The disruption in production-supply chain resulted in
huge shortfall in revenue collection which trickled down to reduced tax share
for the State. The State being largely dependent on Central transfers, the state
of economy at the Centre reflects directly on the State’s economy.
~ 36 ~
__________________________________________________________________________________
4.11 The IMF in its World Economic Outlook Report in January 2022 expected
global GDP to weaken from 5.9% in 2021 to 4.4% in 2022 while India’s
economy is projected to grow by 9% in 2022-23, retaining its position as the
fastest-growing major economy in the world. High frequency indicators show
that India’s economy is well on its way to growing at or even above 9.2% in
2022 as projected in the National Statistical Office (NSO) in its first advance
estimate. As for Mizoram, the GSDP is estimated to increase by 17.47 % (at
current price) in the year 2021-22 according to advance estimates prepared
by Directorate of Economics & Statistics.
4.12 Because of the pandemic, the State had to take up many challenging tasks in
the face of financial adversities. While the tax share continued to dwindle, the
State had to shell out funds from outside its budgetary allocations to fight the
Covid19 pandemic. The perpetual lockdowns shut down business activities
and that substantially weakened cash flow in the economy. During the
pandemic and post pandemic, revenue earned from tourism was not only nil
or minimal. Not surprisingly, the already strained financial situation of the
State worsened from 2020-21 onwards with low revenue income, mounting
debts and high obligatory expenses compounded by Covid-related
expenditures. However, with the gradual lifting of Covid-related restrictions
and progressive decline in Covid cases in the beginning of the year 2022
coupled with massive vaccination drive across the State, the economy is
limping back to normal with projections for the GSDP increasing as in pre-
Covid years.
State’s Own Tax Revenue
4.13 The main sources of Own Tax Revenue of the State Government are classified
into the following categories:
a) State Goods and Services Tax

b) Taxes on Commodities and Services other than Goods and Services
Tax viz. Sales Tax, Taxes on Vehicles, Taxes on Passenger and
Goods, State Excise
c) Taxes on Income and Expenditure viz. Professions Tax
d) Taxes on Property and Capital Transactions viz. Land revenue,
Stamp Duty and Registration Fees
4.14 The trends in collections from the State’s Own Tax Revenue (SOTR) in actual
terms during the years 2015-16 to 2020-21 are presented in Table 4.2 below.
~ 37 ~
__________________________________________________________________________________
Table 4.2 : Trends in State’s Own Tax Revenue

(₹ in crore)
CAGR
Taxes 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
in %
1 2 3 4 5 6 7 8
State Goods and Services Tax

State GST 0.00 0.00 169.76 454.73 532.22 457.91 36.8
Taxes on Commodities and Services other than Goods and Services Tax
Sales Tax 247.04 307.81 242.85 135.92 117.61 113.66 -18.9
State
60.61 72.26 65.83 65.35 2.72 0.96 -58.3
Excise
Taxes on
19.44 25.75 31.58 38.36 40.66 29.01 10.7
vehicles
Taxes on
Passengers 2.71 7.90 7.83 4.71 7.44 4.85 6.6
and Goods
Taxes on Income and Expenditure
Professions
15.39 15.42 15.78 14.48 15.33 15.61 -0.1
Tax
Taxes on Property and Capital Transactions
Stamp Duty
and
3.58 3.26 3.20 4.43 5.85 4.73 10.4
Registration
Fees
Land
8.88 8.58 8.29 8.64 9.05 20.74 13.5
Revenue
Other Taxes
Other Taxes 0.77 0.83 0.79 0.08 0.10 0.09 -42.5
Total 358.42 441.81 545.91 726.70 730.95 647.56 14.5
GSDP at
current 15,138.86 17,191.91 19,385.33 21,912.08 25,230.24 24,244.58 10.8
prices
Tax to
2.38 2.58 2.83 3.33 2.94 2.68
GSDP ratio
Source: Principal Accountant General, Mizoram adjusted with latest figures of GSDP from
Directorate of Economics & Statistics
4.15 The trend in State’s Own Tax Revenue during the same period broken up into
percentage terms is further presented in Table 4.3 below:
~ 38 ~
__________________________________________________________________________________
Table 4.3 Trends in State’s Own Tax Revenue in Percentage
Revenue heads 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
1 2 3 4 5 6 7
State GST 0 0 31.10 62.57 72.81 70.71
Sales Tax 68.92 69.67 44.49 18.70 16.09 17.55
State Excise 16.91 16.36 12.06 8.99 0.37 0.15
Taxes on Vehicles 5.42 5.83 5.79 5.28 5.56 4.48

Taxes on Goods
0.76 1.79 1.43 0.65 1.02 0.75
and Passengers
Professions Tax 4.29 3.49 2.89 1.99 2.10 2.41
Stamp Duty &

1.00 0.74 0.59 0.61 0.80 0.73
Registration Fees
Land Revenue 2.48 1.94 1.52 1.19 1.24 3.20

Other taxes 0.21 0.19 0.14 0.01 0.01 0.01
Total 100.00 100.00 100.00 100.00 100.00 100.00
4.16 The SOTR increased from a modest figure of ₹358.42 crore in 2015-16 to
₹647.56 crore in 2020-21 at a compound annual growth rate of 14.5%. The -
11.41% decline in the SOTR for the year 2020-21 as compared to the previous
year of 2019-20 can largely be attributed to the impact of the Covid19
pandemic which slowed down all sectors of economic activities with resulting
decline in collections from majority of the own tax revenues.
4.17 The tax to GSDP ratio of the State registered a healthy trend from the year
2015-16 till it reached a peak of 3.33% during the year 2018-19. The
introduction of the Goods and Services Tax (GST) across the country since the
1st July, 2017 with enhanced collections did contribute to the spike in tax to
GSDP ratio for the year 2018-19 but the ratio decelerated to less than 3%
thereafter presumably on account of a reversal in the Excise policy of the State
Government.
4.18 The collection from Sales Tax under the Value Added Tax (VAT) regime was
the principal contributor to the SOTR until the year 2017-18 when the VAT
was replaced by the State Goods and Services Tax (SGST). Since the year
2018-19, the State GST continues to be the principal source of own tax
revenue for the State Government with contributions from State GST to the
SOTR at a high of 62.57%, 72.81% and 70.71% during the years 2018-19,
2019-20 and 2020-21 respectively, registering a compound annual growth of
36.8%.
~ 39 ~
__________________________________________________________________________________
4.19 GST subsumes a number of taxes which contributed a large proportion of

State’s Own Tax Revenue (SOTR) in the years prior to its introduction viz.
Value Added Tax, Entertainment Tax and Entry Tax. The average growth rate
of own tax revenue collection in the years prior to introduction of GST from
2012 – 2013 to 2016 – 2017 stood at 14.28%. With the introduction of GST
with effect from 1st July 2017, revenue collection in the form of Integrated
GST, which was non-existent in the previous tax regime became a huge boon
for the revenues of Mizoram as the State is largely an importing State. GST is
essentially a destination based consumption tax, therefore, Integrated GST
(IGST) paid by registered taxpayers of Mizoram on their procurement of goods
and/or services in the course of inter-State trade for furtherance of business
within the State are apportioned to the State of Mizoram as per the provisions
of the Integrated Goods and Services Tax Act, 2017. Moreover, a large portion
of IGST is contributed by end consumers of Mizoram who purchase goods
and/or services outside the State, thereby paying IGST in the process, which
are again apportioned to the State of Mizoram.
4.20 Mizoram is likely to gain more revenues in the long run with the
implementation of the GST with no revenue loss and in fact, the State is one
amongst the few States with no GST compensation from the Centre ever since
the GST regime came into force. The reforms in taxation ushered through the
GST proved to be a boon for the State with a narrow tax base and limited size
of the economy.
4.21 The negative compound annual growth rate in respect of State Excise is due
to the change in Excise policy of the State Government prohibiting the sale
and consumption of liquor resulting in a steep decline in State Excise on
Foreign Liquor from the year 2019-20 onwards. The contributions from State
Excise to the own tax revenue of the State varied from a high of 16.91% in the
year 2015-16 to 8.99% during the year 2018-19 before the sale and
consumption of liquor was banned.
4.22 The taxes on vehicles as also the taxes on passenger and goods did register a
healthy annual growth rate during the period under consideration with a
compound annual growth rate of 10.7% and 6.6% respectively. On the other
hand, the Professions Tax remains sticky with a negative annual growth rate
of -0.1% with actual collections hovering around ₹15 crore.
4.23 Stamp Duty and Registration Fees registered a healthy compound annual
growth of 10.4% during the period under consideration while its share in the
State’s Own Tax Revenue continued to hover below 1%. The quantum of
collections from land revenue also remains almost constant during the years
2015-16 to 2019-20 before it registered a dramatic 129.17% increase during
the year 2020-21 which apparently is due to a one-time increase in collections
from the revenue head “103-Rates and Cesses on land” rather than an
increase in the rate of land revenue nor widening of the tax base since the
~ 40 ~
__________________________________________________________________________________
collection of revenue cess shot up to ₹10.52 crore from a meagre ₹0.38 crore
in the previous year of 2019-20.
State’s Own Non-Tax Revenue
4.24 The State’s Own Non-Tax Revenues largely consist of revenues from fiscal
services, interest receipts, dividends and profits, revenue receipts from general
services, economic services as well as social services. Receipts from general
services largely consist of contributions and recoveries towards pension and
other retirement benefits, state lotteries and departmental receipts in the form
of fees, fines and penalties. Receipts from social services essentially consist of
departmental receipts in the form of user charges for which the main
contributor is the user charges from water supply. Receipts from economic
services consist of receipts from environmental forestry and wildlife, tourism,
roads and bridges, mineral concession fees, rents and royalties and user
charges from the supply of electric power.
4.25 The trends in collection of State’s Own Non-Tax Revenue in actual terms from
the year 2015-16 up to the year 2020-21 are presented in Table 4.4.
4.26 During the period from 2015-16 to the year 2020-21, the State’s Own Non Tax
Revenue (SONTR) registered a compound annual growth of 13.4%, which is
1.1 percentage points lower than that of the State’s Own Tax Revenue.
4.27 The share of the State’s Own Non Tax Revenue to the Gross State Domestic
Product hovered around 2% only, indicating the need to gear up greater efforts
for mobilisation of more resources for the resource deficient State.
4.28 Interest receipts registered a negative compound annual growth rate of -9.3%
with corresponding decline in the share of the State’s Own Non Tax Revenue,
from a high of 10.32% in 2015-16 to a low of 3.40% during the year 2020-21,
the decline may be attributed to the gradual decline in interest realised from
investment of cash balances.
4.29 Non-tax revenues from General Services increased at a compound annual

growth of 2.9% as compared to that of Social Services which registered an
8.6% growth during the period under consideration. The share of Social
Services to the State’s Own Non Tax Revenue is also consistently higher than
that of General Services. A worrying sign in the collections from General
Services is the declining receipts from State Lotteries which can be a potential
source of non-tax revenue for the State. User charges from water supply form
the lion’s share of the receipts under Social Services, with a predominant
share ranging from 80.31% in the year 2015-16 to 83.87% during the year
2020-21. We urge the State government to consider periodic revision of
user charges from water in view of the growing cost of provision of water
~ 41 ~
__________________________________________________________________________________
supply along the lines of the periodic revision of power tariff to boost the
non-tax revenue receipts for the State Government.
Table 4.4 Trends in State’s Own Non Tax Revenue

(₹ in crore)
Revenue CAGR
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
heads in %
1 2 3 4 5 6 7 8
Fiscal
- - - - 2.05 12.06 488.3
Services
Interest
Receipts of 30.73 48.34 51.14 57.68 32.84 19.12 -9.3
which
(a) Interest
realised on
investment 12.39 25.45 24.73 29.83 10.29 1.75 -29.7
of cash
balance
General
Services of 26.00 26.77 32.13 19.26 27.61 34.55 2.9
which
(a) State
12.46 13.55 13.80 5.53 6.49 5.60 -18.4
Lotteries
Social
Services of 42.55 43.66 46.83 50.75 54.91 65.16 8.6
which
(a) Water
34.17 37.51 39.49 44.64 48.32 54.65 9.7
Supply
Economic
Services of 198.35 246.44 260.55 322.27 404.94 430.88 17.3
which
(a) Forestry
and Wild 3.10 2.82 3.67 3.30 4.93 3.74 7.4
Life
(b) Power 166.36 200.11 213.10 270.24 373.61 398.01 20.3
(c) Mineral
concession
fees, rents 4.82 3.09 6.33 5.61 5.23 5.03 4.9
and royalty,
etc.
(d) Civil
3.09 2.80 2.11 4.37 2.77 2.03 -3.9
Aviation
(e) Tourism 2.22 2.36 2.50 2.94 3.07 1.80 -0.3
Total 297.63 365.21 390.65 449.96 522.35 561.76 13.4
GSDP at
current 15,138.86 17,191.91 19,385.33 21,912.08 24,989.60 24,244.58 10.8
prices
State's Own
Non Tax
1.97 2.12 2.02 2.05 2.09 2.32
Revenue as
% of GSDP
~ 42 ~
__________________________________________________________________________________
4.30 The trends in collection of State’s Own Non Tax Revenue during the same
period broken up into percentage terms are presented at Table 4.5 below:
Table 4.5 Trends in State’s Own Non Tax Revenue in Percentage
Revenue heads 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
1 2 3 4 5 6 7
Fiscal Services - - - - 0.39 2.15

Interest
10.32 13.24 13.09 12.82 6.29 3.40
Receipts
General
8.74 7.33 8.23 4.28 5.29 6.15
Services
Social Services 14.30 11.96 11.99 11.28 10.51 11.60
Economic
66.64 67.48 66.70 71.62 77.52 76.70
Services
Total 100.00 100.00 100.00 100.00 100.00 100.00
4.31 Receipts from Economic Services grew at a healthy trend of 17.3% during the
period under consideration and consistently occupied more than two-third
share of the State’s Own Non Tax Revenue. Receipts from power tariff occupied
the lion’s share of the total receipts from Economic Services, ranging from
83.87% during the year 2015-16 to as high as 92.37% during the year 2020-
21. The compound annual growth rate of 20.3% in respect of receipts from
power tariff is indeed a healthy sign.
4.32 The main sources of non-tax revenue for the State are the user charges from
water supply and power supply. The overall trend of the SONTR during the
period under consideration was in tune with the growth of receipts from these
two sources and hence, efficiency in collection of water and power tariff would
be one of the key requisites for effective mobilisation of non-tax revenues for
the State.
Own Revenue Receipts
4.33 The Own Revenue Receipt of the State is nothing but a combination of the
State’s Own Tax Revenue as well as the State’s Own Non-Tax Revenue. Table
4.6 below presents the trends and growth of Own Revenue Receipts as well as
the revenue buoyancy with respect to the Gross State Domestic Product over
the period from 2015-16 to 2020-21.
~ 43 ~
__________________________________________________________________________________
Table 4.6 Trends in Own Revenue Receipts and Revenue Buoyancy

(₹ in crore)
Revenue heads 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
1 2 3 4 5 6 7
State's Own
358.42 441.81 545.91 726.70 730.95 647.56
Tax Revenue
State's Own
Non-Tax 297.63 365.21 390.65 449.96 522.35 561.76
Revenues
State's Own
Revenue 656.05 807.02 936.56 1,176.65 1,253.30 1,209.32
Receipts
Rate of growth
of State's Own
29.02 23.01 16.05 25.64 6.51 -3.51
Revenue
Receipts in %
GSDP at
15,138.86 17,191.91 19,385.33 21,912.08 24,989.60 24,244.58
current prices
Rate of growth
12.06 13.56 12.76 13.03 14.04 -2.98
of GSDP in %
State's Own
Revenue
2.41 1.70 1.26 1.97 0.46 1.18
Bouyancy w.r.t
GSDP
4.34 The State’s Own Revenues grew from ₹656.05 crore in the year 2015-16 to
₹1209.32 crore in the year 2020-21 at a compound annual growth rate of
14.1%. However, the State’s Own Revenue recorded a negative growth rate of
-3.51% during the year 2020-21 on account of the slowdown in the economy
due to the pervasive impact of Covid19 pandemic.
4.35 The State’s Own Revenue buoyancy relative to the GSDP fluctuated from a
high of 2.41 during 2015-16 to a low of 0.46 during the year 2019-20.
Buoyancy ratio essentially indicates the degree of responsiveness of a fiscal
variable with respect to a base variable. In this context, during the year 2015-
16 the State’s Own Revenue buoyancy with respect to the GSDP implies that
State’s Own Revenue increased by 2.41 percentage points for a one percentage
point increase in the GSDP, which is indeed a positive sign. It is, however,
alarming that the buoyancy ratio under consideration gradually decreases
signalling the undesirable fiscal health of the State.
4.36 It is pertinent to compare the projections of the 14th Finance Commission

(from 2015-16 to 2019-20) and the 15th Finance Commission (2020-21) in its
interim report on the State’s Own Revenue Receipts with the actual figures to
understand where the State stands in relation to mobilisation of own
revenues. A comparison of the Own Revenue Receipts between the projections
~ 44 ~
__________________________________________________________________________________
of the 14th/15th Finance Commission and the actual receipts is shown in Table
4.7 below:
Table 4.7 State’s Own Revenue Receipts vis-à-vis Union Finance

Commission projections
(₹ in crore)
Revenue heads 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
1 2 3 4 5 6 7
State's Own
Tax Revenue 401.00 480.00 576.00 691.00 829.00 762.00
(Projections)
State's Own
Non-Tax
98.00 112.00 128.00 148.00 171.00 219.00
Revenues
(Projections)
State's Own
Revenue
499.00 592.00 704.00 839.00 1,000.00 981.00
Receipts
(Projections)
State's Own
Tax Revenue 358.42 441.81 545.91 726.70 730.95 647.56
(Actual)
State's Own
Non-Tax
297.63 365.21 390.65 449.96 522.35 561.76
Revenues
(Actual)
State's Own
Revenue
656.05 807.02 936.56 1,176.65 1,253.30 1,209.32
Receipts
(Actual)
Difference
between actual
Own Revenue
Receipts and 157.05 215.02 232.56 337.65 253.30 228.32
projections of
Own Revenue
Receipts
4.37 It is heartening to note that the State exceeded the projections of the Union
Finance Commissions for the Own Revenue Receipts all through the years
under consideration. Nevertheless, it is also observed that the actual
collections of Own Tax Revenue fell short of the projected figures except for
the year 2018-19. The consistently good returns from non-tax revenues came
to the rescue of the State to surpass the projections of the Union Finance
Commissions.
4.38 The data reveals that the State needs to give concerted efforts for
mobilisation of greater tax revenues without being complacent on the
non-tax revenues. With the coming into force of the GST regime, the tax
base needs to be broadened into areas which were hitherto left untaxed
~ 45 ~
__________________________________________________________________________________
such as GST on the flourishing picnic spots, amusement parks, stone

quarry, etc. The Professions Tax can also be broadened by levying the
stipulated rates from the holders of permits for transport vehicles, be it
taxis, two wheeler taxis, buses, trucks or light commercial vehicles to
enhance the own tax revenue although the rates of the Professions Tax
cannot be raised by the State Government since the same requires a
Constitutional Amendment. The levy and collection of Passenger and
Goods Tax on fares in respect of passengers and goods carried in a taxable
vehicle may also be strictly enforced to garner more tax revenues from
the flourishing passenger transport business. Receipt from land revenue
is also sticky during the period under consideration, the State
Government may consider raising the rates of land revenue on a periodic
basis without making a quantum jump so that the same is not
burdensome for the tax payers.
Transfers from the Centre through devolution of share of Union Taxes
4.39 The 14th Finance Commission made a remarkable change in the sharing
pattern of the divisible pool of taxes by enhancing the States’ share of taxes
from the then 32% to 42% with effect from the year 2015-16 onwards. This is
remarkable in the sense that it altered the composition of Central transfers in
favour of statutory transfers from the discretionary transfers made earlier. It
also resulted in greater predictability and certainty in the quantum of
transfers from the Centre. The 14th Finance Commission indeed, led to a
quantum jump in tax devolutions which is highly significant for a State like
Mizoram with low resource base and limited size of the economy.
4.40 The 15th Finance Commission also continued with the sharing pattern of the
divisible pool of taxes but reduced the same by 1 percentage point to 41% of
the net proceeds of Central taxes on account of the creation of two new Union
Territories of Ladakh and Jammu & Kashmir from the erstwhile State of
Jammu & Kashmir.
4.41 The State of Mizoram happens to be one of the Special Category States which
lacks the resource endowments essential to raise revenue sufficient to meet
its expenditure obligations in the delivery of public services and developmental
efforts. Central transfers in the form of tax devolutions and grants-in-aid
continue to be the principal source of revenue receipts for the State and hence,
its importance.
4.42 The devolutions from the State’s share of Union taxes and duties since the
beginning of the 14th Finance Commission recommendation up to the
beginning of the 15th Finance Commission are presented at Table 4.8 below.
~ 46 ~
__________________________________________________________________________________
Table 4.8 Trends in devolution of Union Taxes and Duties

(₹ in crore)
Revenue heads 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
1 2 3 4 5 6 7
Central Goods
- - 44.16 864.63 856.36 897.91
and Services Tax
Integrated Goods
- - 312.80 69.00 - -
and Services Tax
Corporation Tax 744.21 899.01 948.82 1,218.27 1,028.94 906.03
Taxes on Income
other than 522.28 624.82 801.20 897.21 806.25 928.54
Corporation Tax
Customs duties 374.23 386.72 312.70 248.31 191.29 162.09
Union Excise
306.57 441.60 326.90 165.03 133.00 101.51
Duties
Service Tax 399.66 446.42 350.50 31.92 - 12.42
Other Taxes 1.16 2.06 -0.03 8.59 1.96 2.05
Total 2,348.11 2,800.63 3,097.05 3,502.96 3,017.80 3,010.55

Increase in tax
devolution over
157.84 19.27 10.58 13.11 -13.85 -0.24
previous year in
%
GSDP at current
15,138.86 17,191.91 19,385.33 21,912.08 24,989.60 24,244.58
prices
Percentage of tax
devolution over 15.51 16.29 15.98 15.99 12.08 12.42
GSDP
4.43 The State’s share of tax devolution in actual terms consistently increased
during the period under consideration from 2015-16 till the year 2018-19
when it reached a peak of ₹3,502.96 crore but declined thereafter,
substantially affecting the finances of the State which is heavily dependent
upon transfers from the Centre. The share of tax devolution over the Gross
State Domestic Product which hovered around 15% to 16% during 2015-16
to 2018-19 declined to a low of 12.08% during the year 2019-20. The fiscal
shock on account of the recessionary trend in the economy as well as the
Covid19 pandemic was highly visible in the tax devolutions during the years
2019-20 and 2020-21.
Transfers from the Centre through Grants-in-aid
4.44 Grants-in-aid (GIA) are essentially sums of money given to States by the
Central Government over and above the States’ share of the net proceeds of
the Union taxes and duties for the fulfilment of specific works, plans, schemes
and policies. The nature and amount of grants are determined basically on
~ 47 ~
__________________________________________________________________________________
the recommendation of the Union Finance Commissions including grants in

the form of Centrally Sponsored Schemes, etc. under article 282 of the
Constitution.
4.45 The trends in receipts of grants-in-aid from the Central Government during
the years 2015-16 up to the year 2020-21 are presented at Table 4.9 below.
Table 4.9 Trends in Grants-in-aid from the Central Government

(₹ in crore)
Grants-in-aid 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
1 2 3 4 5 6 7
Non-Plan grants 2,190.37 2,356.38

Grants for State
824.67 771.41
Plan Schemes
Grants for Central
40.22 37.83
Plan Schemes
Grants for
Centrally
520.03 545.87
Sponsored Plan
Schemes
Grants for Special
96.96 79.15
Plan Schemes
Centrally
Sponsored - - 1,464.80 1,249.68 2,103.97 1,329.94
Schemes
Finance
Commission - - 2,535.51 2,616.68 2,778.73 1,725.48
Grants of which
Post Devolution
Revenue Deficit - - 2,446.00 2,588.00 2,715.86 1,633.48
Grant
Other transfers/
- - 546.28 493.53 504.43 465.38
grants to States
Total 3,672.25 3,790.64 4,546.59 4,359.88 5,387.13 3,520.80
Increase/decrease
in GIA over -10.26 3.22 19.94 -4.11 23.56 -34.64
previous year in %
GSDP at current
15,138.86 17,191.91 19,385.33 21,912.08 24,989.60 24,244.58
prices
Percentage of GIA
24.26 22.05 23.45 19.90 21.56 14.52
over GSDP
4.46 The nomenclature of plan and non-plan grants was removed with effect from
the year 2017-18 and hence, grants-in-aid from the Central Government was
classified as (a) Grants for Centrally Sponsored Scheme, (b) Finance
Commission Grants, and (c) Other Grants to States. The Finance Commission
Grants basically consist of post devolution revenue deficit grants, grants to
rural local bodies and urban local bodies and grants for disaster management
~ 48 ~
__________________________________________________________________________________
for which the major component is the post devolution revenue deficit grants.
The change in nomenclature is also accordingly reflected in the Table above
with effect from the year 2017-18 onwards.
4.47 The Finance Commission grants with a sizeable untied post devolution
revenue deficit grants gave the State the much needed fiscal space during the
award period of the 14th Finance Commission. However, a drastic reduction of
the revenue deficit grant by ₹1082.38 crore at the beginning of the 15th
Finance Commission award period left a huge void in the State finances which
is heavily dependent upon transfers from the Centre. The quantum of the post
devolution revenue deficit grants as recommended by the 15th Finance
Commission gradually tapers off during its award period and the same can
have significant consequences upon the State finances unless the gradual
decrease is amply compensated by an increase in the share of tax devolution.
4.48 The share of the grants-in-aid to the GSDP varies from a high of 24.26%
during the year 2015-16 to a low of 14.52% in the year 2020-21.
Total Transfers from the Centre
4.49 The trend in the Central Tax transfers consisting of devolution of State’s share
of Central taxes and Duties and Grants-in-aid to the State during the period
from 2015-16 till 2020-21 is depicted in the Chart 4.2.
4.50 The Chart amply reveals that the grants-in-aid from the Centre consistently
exceeded the State’s share of devolution of Central Taxes and Duties in the
total transfers from the Centre. The total transfers from the Centre took a
significant dip of -22.29% during the first year of the 15th Finance Commission
award period i.e. 2020-21, owing to a drastic reduction in the amount of the
grants-in-aid.
Chart 4.2 Trends in Central Tax transfers
9000 8404.93
7643.64 7862.84
Transfers from Centre in crore
8000
5387.13
6591.27 6531.35
7000 6020.36
4546.59
4359.88
3790.64
6000
3672.25
3520.80
3502.96
3097.05
3010.55
2800.63
5000
3017.8
2348.11
4000
3000
2000
1000
0
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Devolution of Central Taxes and Duties Grants-in-aid from Centre

Total transfers from Centre
Source: Principal Accountant General, Mizoram
~ 49 ~
__________________________________________________________________________________
4.51 A summary of the own revenues generated by the State, transfers from the
Centre in the form of tax devolution as well as grants-in-aid and their
respective shares in the Total Revenue Receipts (TRR) as also the Gross State
Domestic Product (GSDP) is presented in Table 4.10.
4.52 The effort of the State Government in raising its own source revenues is
reflected in the gradual increase in the share of Own Revenue Receipts to the
Total Revenue Receipts exceeding the 10% figure since the year 2016-17 with
the figure reaching a high of 15.62% in the year 2020-21, perhaps due to the
decreased flow of Central transfers.
4.53 The share of tax devolution to the total revenue receipts also hovered between
a low of 31.25% during 2019-20 to a high of 38.89% in the next financial year.
Approximately more than one third of the total revenue receipts of the State
comes from the State’s share of devolution of Central taxes and duties after
the enhanced devolution recommended by the 14th Finance Commission. It
may be noted that the State’s share of tax devolution gradually increased from
a low of 8.8% during the year 2006-07 to 18.20% in 2014-15 which
subsequently recorded a quantum jump to 35.17% in the first year of the 14th
Finance Commission award i.e. 2015-16, thanks to the structural changes in
the revenue transfers post 14th Finance Commission.
4.54 Grants-in-aid occupy a prominent place in the system of revenue transfer from
the Centre. Their share in the total revenue receipts of the State during the
period under consideration never falls below 45.48% during the year 2020-21
to a high of 55.78% during the preceding year 2019-20. It is, however,
desirable that the revenue transfer through State’s share of tax devolution as
determined by well-defined criteria be proportionately higher than the share
of grants-in-aid which are discretionary in nature.
~ 50 ~
__________________________________________________________________________________
Table 4.10 Trends in Revenue Receipts

(₹ in crore)
Revenue heads 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
1 2 3 4 5 6 7
State's Own Tax
358.42 441.81 545.91 726.70 730.95 647.56
Revenue
State's Own Non-
297.63 365.21 390.65 449.96 522.35 561.76
Tax Revenues
State's Own
Revenue Receipts 656.05 807.02 936.56 1,176.65 1,253.30 1,209.32
(ORR)
Percentage of ORR
over Total Revenue 9.83 10.91 10.92 13.02 12.98 15.62
Receipts (TRR)
Devolution of
Central Taxes and 2,348.11 2,800.63 3,097.05 3,502.96 3,017.80 3,010.55
Duties
Percentage of
Devolution over 35.17 37.86 36.10 38.75 31.25 38.89
TRR
Grants-in-aid from
3,672.25 3,790.64 4,546.59 4,359.88 5,387.13 3,520.80
Centre
Percentage of
Grants-in-Aid over 55.00 51.24 52.99 48.23 55.78 45.48
TRR
Total Revenue
15,138.86 17,191.91 19,385.33 21,912.08 24,989.60 24,244.58
Receipts
Percentage of TRR
44.10 43.03 44.26 41.25 38.65 31.93
over GSDP
4.55 The composition of revenue receipts from various sources is highlighted in the
chart 4.3 for easy reference:
Chart 4.3 Trends in composition of Revenue Receipts

9658.22
9039.49
12,000.00
8580.20
7740.67
7398.29
10,000.00
Revenue receipts in crore
6676.41
5,387.13
4,546.59
8,000.00
4,359.88
3,790.64
3,672.25
3,520.80
3,502.96
3,097.05
3,017.80
3,010.55
2,800.63
6,000.00
2,348.11
1,253.30
1,209.32
1,176.65
4,000.00
936.56
807.02
656.05
2,000.00
-
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
State's Own Revenues Receipts Devolution of Central Taxes and Duties

Grants-in-aid from Centre Total Revenue Receipts
~ 51 ~
__________________________________________________________________________________
Capital receipts
4.56 Capital receipt essentially comprises receipts from internal sources such as
market loans, borrowings from financial institutions/commercial banks,
special securities issued to National Small Savings Fund, loans and advances
from the Central Government which are in the nature of debt capital receipts.
Recovery of loans and advances made by the State and miscellaneous capital
receipts such as proceeds from disinvestments etc. belong to the category of
non-debt capital receipts. Net transactions under Public Accounts are also
incorporated as Capital receipts.
4.57 The trend in capital receipts during the period from 2015-16 to 2020-21 is
highlighted in Table 4.11.
4.58 During the period under consideration, the capital receipts increased by
349.14% from ₹588.91 crore in 2015-16 to ₹2645.01 crore in 2020-21 with a
compound annual growth rate of 22.1% with an exceedingly large proportion
of the capital receipts consistently coming from debt capital receipts.
4.59 The share of non-debt capital receipts to the capital receipts hovered below
the 5% mark during the period from 2015-16 to 2020-21 except for a one-time
spike of 14.17% during the year 2018-19. It registered a compound annual
growth rate of 5.5% during the aforesaid period.
4.60 The State Government is relying heavily upon internal debt as also loans and
advances from the Central Government to finance its capital expenditure
requirements during the period under consideration. The quantum jump in
capital receipts during the years 2019-20 and 2020-21 is also essentially on
account of increased debt capital receipts.
4.61 The ratio of capital receipts to the Gross State Domestic Product also
increased from 3.89% during 2015-16 to 10.91% owing to the enhanced
borrowings resorted to by the State during the year 2020-21.
~ 52 ~
__________________________________________________________________________________
Table 4.11 Trends in Capital receipts

(₹ in crore)
Sl.
Description 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
No.
1 2 3 4 5 6 7 8
Internal
1 559.27 748.68 886.27 122.86 1132.80 2363.70
Debt
Loans and
advances
2 3.80 6.84 7.87 11.36 14.88 247.62
from the
Centre
Debt capital
3 receipts 563.07 755.52 894.14 134.22 1147.68 2611.32
(1+2)
Rate of
growth of
4 debt capital -59.29 34.18 18.35 -84.99 755.07 127.53
receipts in
%
Recovery of
5 loans & 25.84 22.45 21.64 22.16 26.70 33.69
advances
Miscellaneo
6 us Capital 0.00 0.00 0.00 0.00 0.00 0.00
Receipts
Non-debt
capital
7 25.84 22.45 21.64 22.16 26.70 33.69
receipts
(5+6)
Rate of
growth of
non-debt
8 -18.31 -13.12 -3.61 2.40 20.49 26.18
capital
receipts in
%
Capital
9 588.91 777.97 915.78 156.38 1174.38 2645.01
Receipts
Rate of
growth of
10 capital -58.37 32.10 17.71 -82.92 650.98 125.23
receipts in
%
GSDP at
11 current 15,138.86 17,191.91 19,385.33 21,912.08 24,989.60 24,244.58
prices
Capital
Receipts to
12 3.89 4.53 4.72 0.71 4.70 10.91
GSDP ratio
in %
~ 53 ~
__________________________________________________________________________________
4.62 The trend in composition of capital receipts is highlighted in the chart below
for reference:
Chart 4.4 Trends in capital receipts
2645.01
2611.32
3000.00
Capital receipts in crore
2500.00
1174.38
1147.68
2000.00
915.78
894.14
777.97
755.52
1500.00
588.91
563.07
1000.00
156.38
134.22
33.69
26.70
25.84
22.45
22.16
21.64
500.00
0.00
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Debt capital receipts Non-debt capital receipts Capital Receipts
Revenue Expenditure
4.63 Public expenditure is a significant driver of economic growth for States like
Mizoram with narrow tax base and limited size of the economy. Public
expenditure plays an important role in achieving the goals of growth,
development, equity and stability. It is the responsibility of the State
Government to provide social and economic services for sustained and
inclusive development through public expenditure while, at the same time,
maintaining the fiscal health of the State by controlling deficit financing.
4.64 Revenue expenditure can be classified into three functional domains viz.
General services, Social services and Economic services. Expenditures on
administration of justice, elections, collection of taxes and duties, interest
payments and debt servicing, police, secretariat administration, district
administration, pensions and other retirement benefits, etc. fall under General
services. Social service expenditures include expenses incurred on education,
sports and youth services, medical and public health, water supply and
sanitation, housing, urban development, labour and skill development, social
security, relief on account of natural calamities etc. Expenditures on power,
roads and bridges, animal husbandry, crop husbandry, forestry and wildlife,
food storage and warehousing, rural employment, cooperation, irrigation,
industries, road transport, etc. are some of the main items of Economic
services.
4.65 The trend in revenue expenditure classified into different functional domains
for the period from 2015-16 to 2020-21 is presented in the Chart below:
~ 54 ~
__________________________________________________________________________________
Chart 4.5 Trends in revenue expenditure
9453.96
10000.00
8514.80
9000.00
7505.59
6880.76
8000.00
6230.34
Revenue expenditure in crore
5570.86
7000.00
6000.00
5000.00
3392.74
3230.94
3177.84
3161.42
2934.45
2899.80
2695.22
2606.53
4000.00
2300.85
2239.14
2219.96
2106.02
2097.05
2035.10
1917.00
1875.92
1832.44
3000.00
1433.89
2000.00
1000.00
0.00
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
General Services Social Services Economic Services Total Revenue Expenditure
4.66 The trend in revenue expenditure calculated in terms of percentage is

presented in Table 4.12 with the compound annual growth rate for the years
under consideration.
4.67 The total revenue expenditure registered a compound annual growth of 10.4%
from the year 2015-16 to the year 2020-21. In other words, it grew by 52.85%
from ₹5570.86 crore in 2015-16 to ₹8514.80 crore during the year 2020-21,
consistently increasing annually except for the dip in the year 2020-21
apparently due to the low revenue transfer from the Centre owing to the
slowdown in the economy.
4.68 Expenditure on Social services consistently dominated the revenue

expenditure except for the year 2020-2021 in which expenditure on General
services slightly exceeded Social services by 0.62 percentage points.
4.69 Expenditure on General services, which is non-developmental in nature,

accounted for 34.41% of the entire revenue expenditure in the year 2015-16
and registered the highest compound annual growth of 12.2%, from ₹1917
crore in 2015-16 to ₹3230.94 crore during 2020-21.
~ 55 ~
__________________________________________________________________________________
Table 4.12 Trends in revenue expenditure in percentage
Revenue CAGR
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Expenditure in %
1 2 3 4 5 6 7 8
General
34.41 33.66 32.54 35.91 33.44 37.94 12.2
Services
Social
39.85 36.93 37.88 39.10 35.89 37.32 9.2
Services
Economic
25.74 29.41 29.58 24.99 30.67 24.73 9.6
Services
Total Revenue
100.00 100.00 100.00 100.00 100.00 100.00 10.4
Expenditure
4.70 Expenditure on Social services which is basically developmental in nature

recorded an annual compound growth of 9.2% during the year 2015-16 to
2020-21 and accounted for 37.32% of the entire revenue expenditure for the
year 2020-21. Expenditure on Economic services also recorded an annual
compound growth of 9.6% during the aforesaid period. The expenditures on
Social services and Economic services are perhaps the main drivers of
development expenditure for the State.
4.71 An analysis of the trends in revenue expenditure with respect to the revenue
receipts and GSDP along with the buoyancy ratios is presented in the Table
4.13.
4.72 The share of revenue expenditure to the total revenue receipts consistently
accounted for more than 80% during 2015-16 to 2018-19. The share
remarkably took a quantum jump to 97.88% and 110% during the years 2019-
20 and 2020-21 respectively, signalling an unhealthy trend for the State
finances and the dwindling fiscal space available from the revenue receipts
that accrued to the State. Revenue expenditure that exceeds revenue receipts
does not bode well for the fiscal health of the State. We urge the State
government to contain revenue expenditures within the limit of the total
revenue receipts as financing of revenue expenditures from debt capital
receipts can be detrimental for the finances of the State.
~ 56 ~
__________________________________________________________________________________
Table 4.13 Trends in revenue expenditure

(₹ in crore)
Parameters 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
1 2 3 4 5 6 7
Total Expenditure 6288.96 7168.80 8922.07 9414.58 10909.26 9643.67
Revenue Receipts 6676.40 7398.30 8580.20 9039.50 9658.26 7740.67

Revenue
5570.86 6230.34 6880.77 7505.59 9453.96 8514.80
Expenditure
Rate of growth of
Revenue -1.44 11.84 10.44 9.08 25.96 -9.93
Expenditure in %
Revenue
Expenditure as %
88.58 86.91 77.12 79.72 86.66 88.29
of Total
Expenditure
Revenue
Expenditure as % 36.80 36.24 35.49 34.25 37.83 35.12
of GSDP
Revenue
Expenditure as %
83.44 84.21 80.19 83.03 97.88 110.00
of Revenue
Receipts
Buoyancy of
Revenue
Expenditure with (-)0.07 1.09 0.65 1.70 3.79 0.50
respect to
Revenue Receipts
Buoyancy of
Revenue
-0.12 0.87 0.82 0.70 1.85 3.33
Expenditure with
respect to GSDP
4.73 The share of revenue expenditure to the GSDP ranged from a low of 34.25%
during the year 2018-19 to a high of 37.83% during the subsequent year of
2019-20 while the figure hovered around 34% – 36% during the other years
under consideration.
4.74 The buoyancy ratio of revenue expenditure with respect to the revenue
receipts exceeded 1.0 during the years 2016-17, 2018-19 and 2019-20,
depicting an increase in revenue expenditure which exceeded an increase in
revenue receipts.
4.75 The buoyancy ratio of revenue expenditure with respect to GSDP is

consistently less than 1.0 during the aforesaid period except for the two years
2019-20 and 2020-21. In other words, revenue expenditure grew faster than
the growth in GSDP for the first time in five years in the year 2019-20 with a
buoyancy ratio of 1.85 which further jumped to 3.33 in the subsequent year.
~ 57 ~
__________________________________________________________________________________
Committed Expenditure
4.76 Committed expenditure of the State Government essentially consists of

expenditures on salaries and wages, interest payments and pensions. A large
proportion of revenue expenditure goes into committed expenditure,
significantly affecting the efforts of the State to maintain revenue surplus as
mandated under the Mizoram Fiscal Responsibility and Budget Management
Act, 2006 as amended. It is disquieting that the share of committed
expenditure to the revenue receipts shows an upward trend, minimising the
fiscal space available to the State Government.
4.77 The trend in committed expenditure during the years 2015-16 to 2020-21 is
shown at the table below:
Table 4.14 Trends in Committed expenditure

(₹ in crore)
Components 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
1 2 3 4 5 6 7
Salaries and wages 2201.39 2323.02 2400.82 2897.14 3411.87 3320.51
Pensions 616.30 761.40 837.78 970.37 1432.50 1482.72
Interest Payments 369.27 341.26 339.20 368.68 343.12 400.99

Total of
Committed 3186.96 3425.68 3577.80 4236.19 5187.49 5204.22
Expenditure
Salaries and wages
as % of Revenue 32.97 31.40 27.98 32.05 35.33 42.90
Receipts
Pensions as % of
9.23 10.29 9.76 10.73 14.83 19.15
Revenue Receipts
Interest payments
as % of Revenue 5.53 4.61 3.95 4.08 3.55 5.18
Receipts
Committed
expenditure as %
47.73 46.30 41.70 46.86 53.71 67.23
of Revenue
Receipts
Salaries and wages
as % of Revenue 39.52 37.29 34.89 38.60 36.09 39.00
Expenditure
Pensions as % of
Revenue 11.06 12.22 12.18 12.93 15.15 17.41
Expenditure
Interest payments
as % of Revenue 6.63 5.48 4.93 4.91 3.63 4.71
Expenditure
Committed
expenditure as %
57.21 54.98 52.00 56.44 54.87 61.12
of Revenue
expenditure
~ 58 ~
__________________________________________________________________________________
4.78 Committed expenditure grew at a compound annual growth rate of 11.7%

during the years under consideration. It recorded a 63.30% increase from
₹3186.96 crore in 2015-16 to ₹5204.22 crore in 2020-21. The increasing
burden of committed expenditure on revenue expenditure can be observed
from its increasing share in revenue expenditure which touched a high of
61.12% during 2020-21. In fact, the share of committed expenditure to the
revenue expenditure always exceeded the 50% mark during these years. The
share of committed expenditure to the revenue receipts also shows an
increasing trend and reached a peak of 67.23% during 2020-21 from a low of
41.70% during the year 2017-18.
4.79 Among the three components of committed expenditure, expenditure on

pensions recorded the highest compound annual growth of 20.2% during the
years 2015-16 to 2020-21, with a quantum jump of 47.62% in the year 2019-
20 apparently due to the revision of pension entitlements in tune with the
recommendations of the 7th Central Pay Commission as modified and adapted
to the State of Mizoram. The expenditure on salaries and wages also grew at
a compound annual growth of 10.2% during these years which is also
significantly higher than the annual growth rate of interest payments which
stood at 1.5% during the same period.
4.80 The share of the different components of committed expenditure in percentage

terms is depicted in the chart below for reference.
Chart 4.6 Share of different components of committed expenditure in %

120.00
100.00
Committed expenditure in %
11.59 9.96 9.48 8.70 6.61 7.71
80.00 19.34 22.23 23.42 22.91 27.61 28.49
60.00
40.00
69.07 67.81 67.10 68.39 65.77 63.80
20.00
0.00
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Salaries and wages Pensions Interest Payments
4.81 It is notable that the expenditure on salaries and wages of the Government
employees accounted for more than one-third of the revenue expenditure. In
fact, its share in the revenue receipts is also showing an upward trend since
the year 2017-18 by reaching a figure of 42.90% in the year 2020-21. The
~ 59 ~
__________________________________________________________________________________
implementation of the 7th Central Pay as modified for the employees of the
State Government including its attached offices since the 1st September, 2018
did enhance the outgo from the revenue accounts of the State. The
expenditure on pensions as compared to the revenue receipts as well as
revenue expenditure also shows an upward trend during the years 2015-16
to 2020-21 except for a slight decline during 2017-18. The growing pension
expenses pointed to the significance of the New Defined Contributory Pension
Scheme which has been implemented by the State Government since the 1st
September, 2010 with a view to contain the ballooning pension expenditure.
The expanding committed expenditure on salaries and wages as also
pensions should be a cause for concern for the State in its effort to
enhance the limited fiscal space. We, therefore, urge the State
government to initiate steps to limit the fast growing committed
expenditures to enhance the fiscal space of the State for taking up
pressing developmental expenditures. The share of interest payments to
revenue expenditure shows a declining trend from 6.63% in 2015-16 to 3.63%
in the year 2019-20 which however slightly increased to 4.71% in the year
2020-21. This is indeed a positive trend in view of the necessity of bringing
down revenue expenditure of the State.
4.82 The components of committed expenditure as measured relative to the Gross

State Domestic Product are presented in the chart below
Chart 4.7 Committed expenditure as percentage of GSDP
25.00
21.05 20.76 21.47

20.00 19.93 19.33
18.46
15.00 14.54
13.51 13.22 13.65 13.70
12.38
10.00
5.73 6.12
5.00 4.43 4.32 4.43
4.07
2.44 1.99 1.75 1.68 1.65
1.37
-
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Salaries and wages as % of GSDP Pensions as % of GSDP

Interest payments as % of GSDP Committed expenditure as % of GSDP
4.83 The committed expenditure as a percentage of GSDP shows a declining trend

from 2015-16 till 2017-18 perhaps due to a pickup of the GSDP rather than
a decline in the absolute value of the committed expenditure. It gradually
increases to touch a high of 21.47% in 2020-21. The movement of committed
~ 60 ~
__________________________________________________________________________________
expenditure to the GSDP is similar to the movement of salaries and wages to

the GSDP since the same constitute around two-thirds of the entire committed
expenditure during the years under consideration.
4.84 The increasing committed expenditure is a cause for alarm for the
sustainability of the fiscal position of the State since it severely supresses the
capacity of the State Government to fund expenditure obligations for delivery
of critical public services to the citizens.
Capital expenditure
4.85 Capital expenditure (Capex) is essentially incurred to create assets and add to
the infrastructure and service network. It comprises expenditure on capital
accounts under General, Social and Economic sectors along with loans and
advances made by the State. The trend in capital expenditure during the
period from 2015-16 to 2020-21 is presented in the table below:
Table 4.15 Trends in capital expenditure

(₹ in crore)
Sector 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
1 2 3 4 5 6 7 8
General Services
A 34.20 49.18 120.35 99.31 95.22 42.63
of which
Public Works 15.54 22.09 59.20 55.72 87.31 36.16
Social Services
B 211.95 313.30 613.71 762.20 601.37 559.92
of which
Water Supply and
41.74 62.69 76.34 150.64 151.33 247.47
Sanitation
Urban
81.79 165.67 323.19 349.23 319.85 99.75
Development
Economic
C Services of 464.82 548.93 1,262.29 1,006.96 676.08 523.41
which
Power Projects 67.35 43.23 212.75 109.50 128.82 53.70
Roads & Bridges 194.49 369.72 617.27 610.58 376.48 331.09

Loans and
D Advances made 7.13 27.05 44.95 40.52 82.64 2.90
by the State
Total Capital
Expenditure 718.10 938.46 2,041.30 1,908.99 1,455.31 1,128.86
(A+B+C+D)
4.86 Capital expenditure grew at a compound annual growth of 10.6% during the
period under consideration. It gradually increased since 2015-16 and
recorded a 117.52% growth in the year 2017-18, reaching a peak expenditure
~ 61 ~
__________________________________________________________________________________
of ₹2041.30 crore. Thereafter, capex declined successively till the year 2020-
21. Roads and bridges, urban development, water supply and sanitation,
power projects and public works are some of the major items of capital
expenditure for the State Government.
4.87 The trend in capital expenditure in terms of percentage is presented in the

table below.
Table 4.16 Trends in capital expenditure in percentage

Sector 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
1 2 3 4 5 6 7 8
A General Services 4.76 5.24 5.90 5.20 6.54 3.78
B Social Services 29.52 33.38 30.06 39.93 41.32 49.60

Economic
C 64.73 58.49 61.84 52.75 46.46 46.37
Services
Loans and
D Advances made 0.99 2.88 2.20 2.12 5.68 0.26
by the State
Total Capital
Expenditure 100.00 100.00 100.00 100.00 100.00 100.00
(A+B+C+D)
4.88 Capex in Economic Services consistently dominated the capital expenditure

except for the year 2020-21, hovering between 46% to 64% of the entire capital
expenditure, followed by Social Services which ranged from 28.52% to
49.60%. Expenditures on General Services and Loans and Advances made by
the State come a distant third and fourth.
4.89 Capex (including loans and advances) in terms of the total expenditure of the
State Government is presented in the chart below for the years 2015-16 to
2020-21. It is noteworthy that capex as percentage of total expenditure
gradually grew from the year 2015-16 to 2017-18, signifying the fiscal space
available during that point of time. However, with the gradual decrease in
Central transfers during the years 2019-20 and 2020-21, Capex also
registered a declining trend relative to the total expenditure.
~ 62 ~
__________________________________________________________________________________
Chart 4.8 Capex as percentage of total expenditure
Capital Expenditure Capital expenditure as % of total expenditure
2,500.00 25.00
22.88
2,000.00 20.28 20.00
Capex as % of TE
Capex in crore
1,500.00 15.00
13.09 13.34
1,908.99
11.71
2,041.30
11.42
1,000.00 10.00
1,455.31
1,128.86
938.46
718.10
500.00 5.00
- -
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Total expenditure
4.90 The classification of expenditures into revenue and capital when added
together reflects the total expenditure of the State Government. The trend in
the total expenditure during the period 2015-16 to 2020-21 is presented in
the table 4.17.
4.91 The total expenditure of the State Government increased from ₹6288.96 crore
in 2015-16 to ₹9643.67 crore in 2020-21 at a compound annual growth rate
of 10.4%. Revenue expenditure, which forms an overwhelming portion of the
total expenditure, also grew from ₹5570.86 crore in 2015-16 to that of
₹8514.80 crore in 2020-21 at a compound annual growth rate of 10.4% while
capital expenditure, inclusive of loans and advances made by the State, also
registered a 10.6% compound annual growth rate from ₹718.10 crore in 2015-
16 to ₹1,128.86 crore in 2020-21.
4.92 The quality of expenditure has always been an important issue for
consideration. Revenue expenditure, which is in the nature of current
consumption, accounted for a sizeable share of the total expenditure during
these years, from as high as 88.29% in 2020-21 to a low of 77.12% during
2017-18. Capital expenditure, which is in the nature of creation of assets,
ranged from 11.42% in 2015-16 to a peak of 22.88% in 2017-18. Containing
revenue expenditure to an acceptable level to achieve concurrent increase in
capital expenditure should be the overriding objective in management of the
State finances.
~ 63 ~
__________________________________________________________________________________
Table 4.17 Trends in total expenditure

(₹ in crore)
CAGR
Parameters 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
in %
1 2 3 4 5 6 7 8
Total
Expenditure 6288.96 7168.80 8922.07 9414.58 10909.26 9643.67 10.4
(TE)
Revenue
Expenditure 5570.86 6230.34 6880.77 7505.59 9453.96 8514.80 10.4
(RE)
RE as % of TE 88.58 86.91 77.12 79.72 86.66 88.29 NA
Capital
Expenditure
(CE) (inclusive 718.10 938.46 2,041.30 1,908.99 1,455.31 1,128.86 10.6
of loans and
advances)
CE as % of TE 11.42 13.09 22.88 20.28 13.34 11.71 NA
GSDP at current
15,138.86 17,191.91 19,385.33 21,912.08 24,989.60 24,244.58 10.8
prices
TE as % of
41.54 41.70 46.02 42.97 43.66 39.78 NA
GSDP
RE as % of
36.80 36.24 35.49 34.25 37.83 35.12 NA
GSDP
CE as % of
4.74 5.46 10.53 8.71 5.82 4.66 NA
GSDP
4.93 The total expenditure of the State as a percentage of the GSDP also ranged
from 39.78% in 2020-21 to 46.02% during the year 2017-18, signifying the
dominance of Government expenditure on the gross domestic product of the
State. The share of capital expenditure on the GSDP never exceeded the high
point of 10.53% during 2017-18 while the share of revenue expenditure to
GSDP consistently accounted for about one-third of the GSDP during the
aforesaid period.
Outstanding Debt and its sustainability
4.94 Over the years, the State Government has been resorting to borrowings to
meet its budgetary requirements. In fact, the financing pattern of fiscal deficit
is oriented towards a heavy tilt in favour of market loans and liabilities from
the Public Accounts. An increase in the volume of market borrowings raises
costs and concerns about the State’s fiscal health, and the need to incentivise
better fiscal management to lower borrowing costs.
~ 64 ~
__________________________________________________________________________________
4.95 The outstanding debt typically comprises internal debt, loans and advances
from the Central Government and liabilities from Public Accounts. The
internal debt of the State largely consists of market loan which occupies a
predominant share of the internal debt, loans from financial institutions,
special securities issued to National Small Savings Fund, ways and means
advances as also overdraft facility from Reserve Bank of India. Internal debt
and loans and advances from the Central Government are generally classified
as “public debt” in public finance. Public Accounts liabilities comprise
primarily liabilities from the State Provident Funds, Insurance and Pension
Funds, Reserve Funds and Deposits, bearing interest as well as not bearing
interests.
4.96 The trends in outstanding debt from 2015-16 up to 2020-21 vis-à-vis the
Gross State Domestic Product presented in the chart below throw some light
on the debt position of the State Government.
Chart 4.9 Trends in outstanding debt
12,000.00 45.00
42.32
40.76
39.12
40.00
37.66
10,000.00
34.73
33.39
35.00
8,000.00 30.00
Percentage
₹ in crores
9,881.09
8,678.26
25.00
7,315.54
6,000.00
7,300.30
6,725.00
6,407.39
20.00
4,000.00 15.00
10.00
2,000.00
5.00
- -
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Total Outstanding debt Outstanding debt as % of GSDP
4.97 The outstanding debt registered a negative growth rate in 2015-16 with (-)
2.18% which gradually increases to 8.55% in 2017-18 before decelerating to
a low of 0.21% in the next financial year. Since then, the growth in
outstanding debt spiked to 18.63% in 2019-20 followed by 13.86% growth in
2020-21.
4.98 The outstanding debt to GSDP ratio is an important indicator to understand

the debt sustainability for the State. It is heartening to note that the debt-
GSDP ratio gradually decreases from 42.32 in 2015-16 to 33.39 during the
year 2018-19 but the ratio increases gradually reaching 40.76 in the year
~ 65 ~
__________________________________________________________________________________
2020-21. A falling debt to GSDP ratio is considered as leading towards stability

but the picture in recent years shows otherwise.
4.99 It may be pertinent to consider the average interest rate for outstanding public
debt due to the State Government across the years to understand the
borrowing costs. The chart below highlights the average interest rate for the
outstanding debt during the years 2015-16 to 2020-21. The declining average
interest rates signified a gradual lowering of borrowing costs for the State,
which stood at a high of 15.60% in 2015-16 to 8.88% in the year 2020-21.
Lower borrowing costs will help the State in managing debt sustainability in
the long run.
Chart 4.10 Average interest rate of outstanding public debt in %
8.88
15.60
9.48
12.68
11.24
10.86
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
4.100 The major components of outstanding debt viz. internal debt, loans and
advances from Central Government and liabilities from Public Accounts are
shown in the chart 4.11.
4.101 Internal debt registered the highest compound annual growth rate of 14.5%
during 2015-16 to 2020-21 followed by loans and advances from the Central
Government which grew annually at a rate of 5.6% while the total outstanding
debt recorded a compound annual growth of 8.7% during the aforesaid period.
4.102 The composition of outstanding debt when broken down into percentage terms
reveals that the State Government is heavily depending upon deposits under
Public Accounts to meet its budgetary requirements, from 49.28% of the
outstanding debt in 2015-16 to a high of 61.44% in the year 2020-21. Next
source of financing the gross fiscal deficit of the State Government comes the
internal debt which gradually decreased in percentage terms from 45.82% in
2015-16 to 33.79% in 2020-21 on account of the gradual dependence on the
~ 66 ~
__________________________________________________________________________________
Public Accounts. Loans and advances from the Central Government constitute
only a small share in the scheme for deficit financing.
Chart 4.11 Components of outstanding debt
9,881.09
12,000.00
8,678.26
7,315.54
7,300.30
10,000.00
6,725.00
6,407.39
8,000.00
4,869.64
4,660.24
4,527.09
₹ in crore
4,091.27
3,966.02
3,936.89
3,811.91
3,758.92
6,000.00
3,057.24
2,958.10
2,621.90
2,165.17
4,000.00
484.36
305.33
291.19
277.04
266.17
259.10
2,000.00
-
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Internal debt Loans and advances from Central Government

Liabilities from Public Accounts Total Outstanding debt
4.103 The composition of outstanding debt in percentage terms is shown in the chart
4.12 for reference.
Chart 4.12 Composition of outstanding debt in percentage

Internal debt Loans and advances from Central Government Liabilities from Public Accounts
2020-21 45.82 4.90 49.28
2019-20 43.31 2.99 53.70
2018-19 40.44 3.64 55.93
2017-18 41.88 3.79 54.33
2016-17 38.99 4.33 56.68
2015-16 33.79 4.77 61.44
4.104 Analysing the liabilities from Public Accounts, it is true that the main
contributor of liabilities under this component are the State Provident
~ 67 ~
__________________________________________________________________________________
Fund and the deposits parked under the head “K. Deposits and
Advances”. The accumulations under these heads are classified as debt
outstanding to the State Government and it would be in the fitness of
things for the State to reduce the liabilities from Public Accounts in a
gradual manner within a given time frame.
4.105 Debt repayment is an important component of debt management and it

reflects the importance ascribed by the State Government in managing
expenditure as well as its liabilities. Debt repayment liability is reflected by
the maturity profile of public debt which primarily consists of (a) internal debt
viz. market loans, ways and means advances from the Reserve Bank of India,
bonds, special securities issued to National Small Savings Fund, loans from
financial institutions, etc. and (b) loans and advances from the Central
Government. The table 4.18 highlights the maturity profile of the outstanding
stock of public debt as on 31st March, 2021.
4.106 The maturity profile indicates that out of the outstanding public debt as on
31.03.2021, an amount of ₹1945.10 crore, which comes to 34.23%, is payable
within the five years period from 2021-22 to 2025-26 i.e. the final year of the
award period of the 15th Finance Commission wherein the Central transfers
to the State on account of the post devolution revenue deficit grant will
gradually taper off. An amount of ₹2691.99 crore will become payable by the
seventh year i.e. 2027-28 which turns out to be 47.38% of the outstanding
stock of public debt. The repayment liability as reflected in the debt maturity
profile will have a definite impact on the management of the finances of the
State.
4.107 In this context, it is pertinent to mention that the State Government availed
an amount of ₹200 crore under the Scheme for Special Assistance as Loan for
Capital Expenditure from the Central Government for the year 2020-21 to
boost capital expenditure and provide the much needed stimulus to the
economy wreaked by the Covid19 pandemic. The loan will be in the form of a
50-year interest free loan wherein the State Government will be liable to repay
the loan amount in a single instalment in the financial year immediately
following the 50th year of the release of loan.
~ 68 ~
__________________________________________________________________________________
Table 4.18 Maturity profile of public debt

(₹ in crore)
Internal debt Loans
and
Loans Special advances
Year of
maturi- W from Securi- Other from the TOTAL
Market
ty M Bonds Financial ties loans Central
loans
A Institu- issued ++
Govern-
tions to NSSF ment
1 2 3 4 5 6 7 8 9
2015-
139.87 - 2.28 91.65 - 28.85 246.99 509.64
16*
2016-
204.61 - - 35.47 8.96 10.56 226.74 486.34
17
2017-
146.87 - - 19.46 9.67 21.10 3.12 200.22
18
2018-
156.18 - - 61.12 10.92 17.42 3.42 249.06
19
2019-
155.32 - - 61.18 11.67 14.41 3.85 246.43
20
2020-
266.65 - - 56.14 13.18 11.51 2.44 349.92
21
2021-
300.05 - - 95.25 14.30 10.40 23.80 443.80
22
2022-
185.75 - - 113.75 14.30 10.95 24.03 348.78
23**
2023-
260.06 - - 130.66 14.30 6.05 24.29 435.36
24
2024-
230.04 - - 114.84 14.30 2.40 24.67 386.25
25
2025-
200.05 - - 93.23 13.93 1.96 21.74 330.91
26
2026-
170.00 - - 67.27 13.25 1.63 10.10 262.25
27
2027-
424.37 - - 35.95 12.73 1.63 9.96 484.64
28
2028-
- - - 1.81 11.88 1.63 9.49 24.81
29
2029-
900.64 - - 1.40 10.55 1.46 9.19 923.24
30
TOTAL 3,740.46 - 2.28 979.18 173.94 141.96 643.83 5,681.65
* Figures given from 2015-16 to 2021-22 are finalised figures at the close of the previous
financial year.
** Figures given from 2022-23 onwards are the position as on 31 March 2021
++ Other Loans include Loans from NCDC and Loans from Other Institutions (REC, PFC)
4.108 Debt sustainability is an important area of concern in the field of public

finance. It essentially refers to the ability of the State to service its debt now
and in future. Higher the public debt, higher the likelihood that the public
debt is unsustainable. Higher public debt implies that large primary fiscal
~ 69 ~
__________________________________________________________________________________
surplus is needed to service a high level of debt but having a large fiscal
surplus is an uphill task for a small State like Mizoram with narrow base
for generating own source revenues and limited size of the economy.
Further, high public debt is generally associated with higher borrowing
requirements and therefore, a risk in which the State will be unable to
fulfil borrowing requirements from the markets or being able to do so at
very high interest rates. High level of public debt is also detrimental to
the growth of the economy. We suggest that the State government
ensures that debt remains at a sustainable level so that the State is not
forced to increase taxes at exorbitant rates or decrease public spending
resulting in a decline in economic growth.
4.109 The sustainability of debt may also be examined from the trends in the debt
sustainability indicators in the table below:
Table 4.19 Trends in debt sustainability indicators

(₹ in crore)
Debt
sustainability 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
indicators
1 2 3 4 5 6 7
Outstanding debt 6,407.39 6,725.00 7,300.30 7,315.54 8,678.26 9,881.09

Rate of growth of
Outstanding Debt -2.18 4.96 8.55 0.21 18.63 13.86
in %
Gross State
Domestic
15,138.86 17,191.91 19,385.33 21,912.08 24,989.60 24,244.58
Product (GSDP)
at current prices
Rate of growth of
12.06 13.56 12.76 13.03 14.04 -2.98
GSDP in %
Outstanding Debt
to GSDP ratio in 42.32 39.12 37.66 33.39 34.73 40.76
%
Percentage of
interest payment
6.70 4.61 3.95 4.08 3.55 5.18
to Revenue
Receipt
Percentage of
Debt repayment 97.73 41.42 52.90 181.96 30.84 61.96
to Debt receipt
4.110 The outstanding debt to GSDP ratio compares what a State owes to what it
produces. It indicates the ability of the State to repay its debts. If the debt to
GSDP ratio is increasing rapidly and surpasses a certain threshold level, it
can be inferred that the current level of primary balance will not be sufficient
to stabilise the debt-GSDP ratio, meaning the State’s fiscal position is
precarious. However, a falling debt-GSDP ratio implies that the fiscal position
~ 70 ~
__________________________________________________________________________________
of the State is leading towards stability. The ratio gradually declines from
42.32% in 2015-16 to 33.39% in 2018-19, reflecting that the debt
sustainability is leading towards stability, but the trend reverses thereafter
reaching 40.76% in the year 2020-21.
4.111 Comparison of the rate of growth of outstanding debt to that of the GSDP is
also an important indicator of debt sustainability. In the context of Mizoram,
the rate of growth of GSDP had consistently been higher than that of the rate
of growth of outstanding debt from 2015-16 till 2018-19 but the trend reverses
from the year 2019-20 onwards. Increasing borrowings to finance budgetary
requirements in the year 2019-20 perhaps on account of decreased Central
Tax transfers led to a reversal of the trend in the previous years while the year
2020-21 also presents a similar picture.
4.112 The percentage of interest payments to revenue receipts is another important

indicator of debt sustainability. Higher percentage of interest payment implies
diminishing fiscal space for the State. Governments need to have enough
revenues to cover mandatory interest payments and to survive financial
hardships that may arise in future. If significant portion of borrowed funds is
used for repayment of borrowings and interest thereon, the net debt available
to the State for development expenditure is curtailed. Interest payments as a
percentage of the revenue receipts shot up to 5.18% in 2020-21 from a low of
3.55% in the previous year, indicating the need to contain borrowings at a
sustainable level as compared to the revenue receipts.
4.113 Percentage of debt repayment to debt receipts also reflects the sustainability
of the debt position of the State. Higher the percentage, higher the proportion
of debt utilised for debt servicing rather for creation of capital assets. The
percentage varied widely during the years 2015-16 to 2020-21 with no specific
discernible trends. These figures are indeed on the higher side indicating the
need to maintain prudence while determining the borrowing requirements of
the State while at the same time infusing enough capital into the economy to
provide the much needed stimulus in the backdrop of the Covid19 pandemic.
4.114 The assessment of the debt position of the State will be incomplete without
reference to the Contingent liabilities of the State. Contingent liabilities of the
State Government represent guarantees issued on behalf of the Public Sector
Undertakings (PSU) and other institutions including District Councils, urban
local bodies to enable them to raise resources to meet the requirement of
public investment. These Government guarantees become a liability for the
State in case of default by the bodies availing loans. The Mizoram Ceiling on
Government Guarantee Rules, 2013 prescribe that (i) the total outstanding
guarantees shall not exceed 25% of GSDP on the first day of April of any year,
(ii) total fresh guarantees in a given year shall not exceed 3% of the estimated
GSDP for the year, (iii) guarantees shall be ordinarily extended by the
Government on behalf of departmental undertakings, PSUs, local authority,
statutory boards, cooperative institutions and other authorities and agencies
~ 71 ~
__________________________________________________________________________________
under the Government, and (iv) the Government shall charge a minimum of
0.75% of the amount guaranteed loan as guarantee commission and this will
be remitted to Public Account of the State.
4.115 The table below highlights the Government guarantees issued by the State
Government for the years 2015-16 to 2020-21 by combining the principal and
the interest as on the 31st March of the financial years.
Table 4.20 Government Guarantees given by the State Government

(Principal and Interest combined)
(₹ in crore)
Particulars 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
1 2 3 4 5 6 7
Cooperative
Banks, 50.85 42.92 49.64 17.05 56.51 59.69
Societies, etc.
Government
24.93 28.09 29.67 30.38 31.09 29.46
Companies
Statutory
19.24 17.89 17.79 17.89 17.89 16.61
Corporation
Other
5.20 35.10 36.73 32.67 36.80 9.83
institutions
TOTAL 100.22 124.00 133.83 97.99 142.29 115.59
Percentage of
Govt.
guarantee to 1.56 1.84 1.83 1.34 1.64 1.17
outstanding
debt
Percentage of
Govt.
0.66 0.72 0.69 0.45 0.57 0.48
guarantee to
GSDP
4.116 There is no definite trend in the Government guarantees given across the
years. One visible trend is that the percentage of Government guarantee over
the total outstanding debt is always below the 2% mark and there has
reportedly been no default during the years under consideration. The
percentage of Government guarantee to the GSDP is always less than 1%
during these periods, implying that the State Government maintains the
ceiling limits as prescribed in the Mizoram Ceiling on Government Guarantee
Rules, 2013.
Trends in Deficits/Surpluses
4.117 The overall financial health of the State Government is reflected to a great
extent by three major indicators viz. Revenue Deficit/Revenue Surplus, Fiscal
~ 72 ~
__________________________________________________________________________________
Deficit/Fiscal Surplus and Primary Deficit/Primary Surplus. Deficit in the

Government account primarily refers to the gap between the receipts and
expenditures. If the expenditure incurred is greater than the receipts, it is
called deficit and it is considered surplus if the receipts are more than the
expenditures incurred.
4.118 Revenue deficit is defined as the difference between the revenue expenditure
and the revenue receipts. Revenue deficit implies that the revenue receipts are
not enough even to meet the revenue expenditure and hence, part of capital
receipts have to be utilised to meet revenue expenditure, thus, reducing the
availability of capital to be deployed for creation of capital assets. Revenue
deficit is a cause of concern for the financial health of the State since the
Government has to borrow even to meet its consumption requirements apart
from financing its capital investment projects.
4.119 Fiscal deficit is basically the difference between the revenue receipts plus non-
debt capital receipts and the total expenditure. It reflects the total borrowing
requirements of the State. In other words, it is the difference between the total
expenditure and total receipts excluding borrowings. Governments usually
finance their capital investment projects by resorting to borrowings from
various sources since the revenue receipts can hardly meet the capital
requirements. They usually run on fiscal deficits for creation of capital assets
that can generate returns to ensure subsequent payment of the borrowings
including the interest that accrues.
4.120 The third fiscal indicator viz. Primary deficit refers to the fiscal deficit minus
the interest payments on previous borrowings. It indicates the borrowing
requirements of the Government, excluding interest. It also shows how much
of the Government's expenses, other than interest payment, can be met
through borrowings.
4.121 The State Government has been consistently maintaining revenue surplus
until the year 2020-21 when there was a reversal of revenue surplus into
revenue deficit apparently owing to the decelerating revenue collections due
to constant lockdowns and constrained economic activities in addition to
laxity in expenditure management. The surplus on revenue account for the
year 2019-20 was also comparatively minimal with the State facing the heat
on account of the recessionary trend in the Indian economy.
4.122 Table 4.21 and Chart 4.13 highlight the trends in the State finances as
indicated by the three fiscal indicators for the years 2015-16 to 2020-21.
~ 73 ~
__________________________________________________________________________________
Table 4.21 Trends in deficit indicators

(₹ in crore)
Parameters 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
1 2 3 4 5 6 7
Revenue Surplus (+)/
1,105.54 1,167.96 1,699.43 1,533.91 204.31 -774.13
Revenue Deficit
Revenue surplus (+)/
Revenue deficit (-) as 7.30 6.79 8.77 7.00 0.82 -3.19
% of GSDP
Fiscal Surplus
413.28 251.95 -320.23 -352.92 -1,224.30 -1,869.31
(+)/Fiscal Deficit (-)
Fiscal Surplus
(+)/Fiscal Deficit (-) 2.73 1.47 -1.65 -1.61 -4.90 -7.71
as % of GSDP.
Primary surplus (+)/
782.55 593.21 18.97 15.76 -881.18 -1,468.32
Primary deficit(-)
Primary surplus (+)/
Primary deficit(-) as 5.17 3.45 0.10 0.07 -3.53 -6.06
% of GSDP
Chart 4.13 Trends in deficit indicators relative to GSDP

10.00
Revenue surplus (+)/ 8.00 8.77
7.30 6.79 7.00
Revenue deficit (-) as 6.00 5.17
4.00 3.45
% of GSDP 2.00 2.73
Fiscal Surplus 1.47 0.82
- 0.10 0.07
-1.65 -1.61
Percentage
(+)/Fiscal Deficit (-) (2.00)

(4.00) -3.53 -3.19
as % of GSDP. -4.90
(6.00) -6.06
Primary surplus (+)/ (8.00) -7.71
Primary deficit(-) as % (10.00)
of GSDP 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Revenue surplus (+)/ Revenue
7.30 6.79 8.77 7.00 0.82 -3.19
deficit (-) as % of GSDP
Fiscal Surplus (+)/Fiscal Deficit
2.73 1.47 -1.65 -1.61 -4.90 -7.71
(-) as % of GSDP.
Primary surplus (+)/ Primary
5.17 3.45 0.10 0.07 -3.53 -6.06
deficit(-) as % of GSDP
4.123 It is noteworthy that the State maintained fiscal surplus during the years
2015-16 and 2016-17 that were 2.73% and 1.47% of the GSDP respectively.
The “Year of Consolidation” announced by the then Finance Minister in his
budget speech for the year 2015-16 did pay dividends. However, the trends of
fiscal deficit deteriorated especially after 2019-20 when it shot beyond the
upper limit of -3% fiscal deficit. The State also managed to maintain primary
surplus during the years 2015-16 to 2018-19 but unfortunately slid down to
~ 74 ~
__________________________________________________________________________________
-3.53% and -6.06% of the GSDP for the remaining years of the period under
consideration.
4.124 Following the recommendation of the Twelfth Finance Commission, the State
has also enacted the Mizoram Fiscal Responsibility and Budget Management
Act, 2006 with the corresponding rules framed under the Act which came into
force with effect from 1st July, 2007. The State, therefore, has been following
the rule based fiscal management policy since then to maintain prudent
revenue expenditure. The performance of the State with respect to the fiscal
targets under the Mizoram Fiscal Responsibility and Budget Management Act,
2006 as amended is as shown below.
Table 4.22 Performance with respect to targets under

Mizoram FRBM Act, 2006
Fiscal
Units 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
targets
1 2 3 4 5 6 7 8
Generate
Revenue
Surplus (+) Revenue
as per Surplus
section 6(1) (+)/Revenue 1,105.54 1,167.96 1,699.43 1,533.91 204.31 -774.13
of Mizoram Deficit (-) in
FRBM Act, ₹ crore.
2006 as
amended
Reduce Fiscal
fiscal Surplus
deficit (+)/Fiscal 413.28 251.95 -320.23 -352.92 -1,224.30 -1,869.31
below (-)3% Deficit (-) in
of GSDP as ₹ crore.
per section
6(2) of Fiscal
Mizoram Surplus
FRBM Act, (+)/Fiscal 2.73 1.47 -1.65 -1.61 -4.90 -7.71
2006 as Deficit (-) as
amended % of GSDP.
4.125 The Mizoram Fiscal Responsibility and Budget Management (Amendment) Act,
2020 extends the time line for attaining the fiscal deficit target i.e. 3% of the
GSDP by the year 2024-25 to provide space for additional borrowings to the
State Government following reduced revenue generation on account of the
Covid19 pandemic and give the much-needed stimulus to the struggling
economy.
~ 75 ~
__________________________________________________________________________________
Projections of Gross State Domestic Product
4.126 The Commission's task is to make reasonable forecasts of the resources

available to the State Government for the following five years beginning April
1, 2021, based on tax and non-tax receipts at the end of March, 2021. In other
words, it is required to anticipate revenues for the years 2021-22 through
2025-26. While making its recommendations, the Commission must consider
the demands on the State Government's resources, particularly those related
to civil administration, law and order, debt servicing, and other committed
expenditures and liabilities, as well as the State Government's taxation efforts.
4.127 As a result, the Commission endeavours to make forecasts of the Gross State
Domestic Product for the following five years, beginning on April 1, 2021, since
it is one of the most essential indicators for gauging the State's economic
growth. On the basis of the GSDP estimates, projections for the State's Own
Tax Revenue, which constitutes the divisible pool of resources, will be made.
Meanwhile, forecasts of Central transfers in the form of tax devolution and
grants-in-aid will be made based on the 15th Finance Commission's
recommendations to arrive at the total revenue receipts that are most likely
accessible to the State.
4.128 The Commission understands that there are several factors at play which
affect the growth of GSDP. We are attempting to make forecast on the basis of
the trend being observed in the last decades or so, using the compound annual
growth rate over the years using the coefficient of estimated semi-log
regression. The Covid19 pandemic has caused significant disruptions to the
normal trend in the growth of GSDP, including the State of Mizoram. Keeping
all these in view, the time series econometric model of Auto-Regressive
Integrated Moving Average (ARIMA) is adopted to forecast/project GSDP till
the year 2025-26. The data published by the Planning & Programme
Implementation Department, Government of Mizoram, in its annual Economic
Survey are used in the forecasting. The Actual GSDP is available up to 2019-
20, and Provisional Estimates (PE) and Advanced Estimates (AE) are available
for 2020-21 and 2021-22, respectively. Meanwhile, the Revised Estimates of
GSDP for 2022-23 is available in the State Budget 2023-24, which shows
slightly higher than 6% of the Advanced Estimates of the year before. The
GSDP for the year 2022-23 (RE) is considered reasonable considering the
growth of the national economy and global environment, and thus, it is
accepted as the GSDP estimate for the year 2022-23. The table below shows
the projections of GSDP for the State of Mizoram within the award period of 5
years up to the year 2025-26.
~ 76 ~
__________________________________________________________________________________
Table 4.23 Projections of GSDP for Mizoram

(₹ in crore)
2021-22
Year (Advanced 2022-23 2023-24 2024-25 2025-26
Estimates)
GSDP at
28480.10 30223.60 33462.78 39084.23 43942.60
current prices
Estimates of taxable capacity of the State
4.129 The Commission makes an attempt to estimate the taxable capacity of the
State government, knowing fully well that the same is not an easy task since
there are a number of factors, such as population, social, economic,
administrative, and political issues, etc., that can affect the State's tax
revenue collection. For instance, there was a substantial amount of revenue
collection from state excise during 2015–2018, but it decreased drastically
from ₹65.35 crore in 2018–19 to ₹2.72 crore in 2019–20 owing to the repeal
of the MLPC Act, 2014, implemented by the previous government. Keeping
this in view, projections of the taxable capacity of the State government for the
years 2022–25 are made based on the existing trend of tax revenue collections
and its determining factor(s).
4.130 Two major approaches are generally employed in measuring revenue capacity:
the regression approach and the representative tax system approach. We
adopt the regression approach to estimate the revenue capacity of the State
government. The estimation is done in two stages. The first stage consists of
estimating log-linear regression on individual tax revenues based on the
determining factors, and the projections are for the years 2021–22. Second,
taking the projected values as sample years, forecasting of taxable capacity is
made using the ARIMA model for the years 2022–2025. The following
regression models are estimated to arrive at the taxable capacities of
individual tax items:
Land revenue : log(𝑙𝑎𝑛𝑑 𝑟𝑒𝑣𝑒𝑛𝑢𝑒) = 𝛼 + 𝛽log(𝐺𝑆𝐷𝑃 𝐴𝑔𝑟𝑖. & 𝐴𝑙𝑙𝑖𝑒𝑑 𝑆𝑒𝑐𝑡𝑜𝑟)

Stamps & registration : log(𝑆𝑡𝑎𝑚𝑝 &𝑅𝑒𝑔) = 𝛼 + 𝛽log(𝐺𝑆𝐷𝑃)
Professions tax :log(𝑃𝑟𝑜𝑓𝑒𝑠𝑠𝑖𝑜𝑛𝑎𝑙 𝑇𝑎𝑥) = 𝛼 + 𝛽log{𝐺𝑆𝐷𝑃 − (𝐺𝑆𝐷𝑃 𝐴𝑔𝑟𝑖. & 𝐴𝑙𝑙𝑖𝑒𝑑)}
Sales Tax/GST/VAT : log(𝑇𝑎𝑥 𝑜𝑛 𝐺𝑜𝑜𝑑𝑠 &𝑆𝑒𝑟𝑣𝑖𝑐𝑒𝑠) = 𝛼 + 𝛽log(𝐺𝑆𝐷𝑃)
Tax on Motor Vehicle : log(𝑀𝑜𝑡𝑜𝑟 𝑉𝑒ℎ𝑖𝑐𝑙𝑒 𝑇𝑎𝑥) = 𝛼 + 𝛽log(𝑁𝑜. 𝑜𝑓 𝑀𝑜𝑡𝑜𝑟 𝑉𝑒ℎ𝑖𝑐𝑙𝑒𝑠)
Passenger & goods tax: log(𝑃&𝐺 𝑇𝑎𝑥) = 𝛼 + 𝛽log(𝑁𝑜. 𝑜𝑓 𝑀𝑜𝑡𝑜𝑟 𝑉𝑒ℎ𝑖𝑐𝑙𝑒𝑠)
State excise : log(𝑆𝑡𝑎𝑡𝑒 𝐸𝑥𝑐𝑖𝑠𝑒) = 𝛼 + 𝛽log(𝐺𝑆𝐷𝑃)
Other tax : log(𝑂𝑡ℎ𝑒𝑟 𝑇𝑎𝑥 𝑅𝑒𝑣𝑒𝑛𝑢𝑒𝑠) = 𝛼 + 𝛽log(𝐺𝑆𝐷𝑃)
4.131 It may be noted that indirect taxes collected by the State government on the
sale of goods (like sales tax, VAT, entry tax, etc.) were all subsumed to GST,
except for a few items (petroleum products, etc.) with effect from the year
2017. The estimate of individual taxable capacity for GST alone is unlikely to
be significant due to the problem of limited degrees of freedom, while the
estimate for VAT/sales tax has lost policy significance due to the change in
the tax regime. Accordingly, VAT/Sales and GST are combined and considered
~ 77 ~
__________________________________________________________________________________
as taxes on goods and services. Though it is not GST per se, for the sake of
simplicity, it is found more appropriate to use GST for this group of taxes. The
above regressions are estimated using the GSDP (disaggregated) data of
Economics & Statistics, Government of Mizoram.
4.132 The results of estimated regressions are presented in the table below.
Table 4.24 Estimated regression equation for different taxes

Tax Independent Constant Coefficient
R-Squared
(Dependent variables) variables (𝜶) (𝜷)
GSDP Agriculture &
Land Revenue -6.47*** 1.03*** 0.91
Allied Sector
Stamp & Registration GSDP -16.57*** 1.81*** 0.94
GSDP – GSDP
Professional Tax -3.29*** 0.63*** 0.81
(Agriculture & Allied)
Tax on Goods &
GSDP -8.25*** 1.56*** 0.97
Services
Tax on Motor Vehicles No. of motor vehicles -10.7*** 1.14*** 0.88
Passenger & Goods
No. of motor vehicles -7.25** 0.71*** 0.38
Tax
State Excise GSDP -7.11 0.94* 0.18
Other Tax GSDP 4.18 -0.58* 0.17

***, **, & * significant at 1%, 5% & 10% levels respectively
4.133 The estimated coefficients are also measures of the revenue buoyancy of each
tax item on the respective independent variables. The projected taxable
capacity of the State government on major tax revenue sources is, thus,
presented in the table below.
Table 4.25 Estimated taxable capacity of the State

(₹ in crore)
State Taxes 2022-23 2023-24 2024-25 2025-26
Land revenue 14.01 14.68 15.92 16.70
Stamps & registration 10.34 13.86 19.01 23.74
State excise 14.24 16.62 19.51 21.85

Taxes on Sale of Goods & Services
969.26 1158.34 1383.68 1667.51
(VAT, GST, Sales Tax)
Tax on motor vehicles 55.12 63.11 71.41 80.12
Passenger & goods tax 7.15 7.82 8.50 9.21
Professions tax 20.63 21.78 22.22 23.16
Other taxes 0.15 0.14 0.13 0.12
Total taxable capacity 1090.90 1296.36 1540.37 1842.40
~ 78 ~
__________________________________________________________________________________
Projections of Own Revenue Receipts
4.134 The revenue buoyancies of the State’s Own Tax Revenue (SOTR) and State’s
Own Non-Tax Revenue (SONTR) are estimated using the log-linear regression
of the form:
𝑙𝑜𝑔𝑅𝑡 = 𝛼 + 𝛽 log(𝐺𝑆𝐷𝑃) + 𝑢𝑡
where 𝑅𝑡 is the revenue receipt (tax or non-tax) in year ‘t’, GSDP is the
indicator of revenue base, 𝑢𝑡 is the error terms and 𝛽 is the buoyancy co-
efficient, and 𝛽 > 1 indicates buoyant revenue receipt relative to GSDP. The
estimated revenue buoyancies are presented in the table below.
Table 4.26 Buoyancy Estimates for State’s Own Tax Revenue and
Own Non-Tax Revenue
Buoyancy
Sources Sig. level R-Square
Coefficient
State’s Own Tax Revenue (SOTR) 1.174*** 0.000 0.98
State’s Own Non Tax Revenue
0.822*** 0.000 0.92
(SONTR)
State’s Own Revenue 0.989*** 0.000 0.97
***significant at 1% level
4.135 It is observed from the above table that only SOTR has a buoyancy estimate
of more than 1, which means that it increases with an increase in GSDP by
more than proportionately, i.e. by 17.4% per unit increase in GSDP. The
commendable buoyancy of tax revenue may be attributable to the introduction
of GST, which is likely to benefit the consumer states of industrial products
as it is destination-based indirect taxation. At the same time, though
significant, the SONTR and total state own revenue have a buoyancy
coefficient less than 1, showing they increase with the increase in GSDP but
less than proportionately.
4.136 Though the regression coefficient for SOTR on GSDP has been highly
significant, and the former shows high volatility to the latter, the log-linear
regression equation cannot be used to make projection for SOTR and SONTR
for the coming years as the regressor (i.e. GSDP) is not available. Using its
forecasted values as a regressor may result in other economic problems like
autocorrelation. Consequently, the Auto-Regressive Integrated Moving
Average (ARIMA) model, is considered suitable for making projections of the
SOTR and SONTR for the coming years. Hence, the State’s Own Tax Revenue
and Own Non-Tax Revenue for the award period are projected using the
ARIMA model as shown in the table below.
~ 79 ~
__________________________________________________________________________________
Table 4.27 Projections of State’s Own Tax Revenue and

Own Non-Tax Revenue
(₹ in crore)
2022-23
Sl. 2021-22
Items (Revised 2023-24 2024-25 2025-26
No. (Actuals)
Estimate)
State's Own Tax
1 853.93 971.80 1084.30 1193.13 1218.83
Revenue
State's Own Non-
2 622.12 855.10 897.00 997.42 1067.47
Tax Revenue
State's Own
3 1476.04 1826.90 1981.30 2190.55 2286.30
Revenue Receipts
Projections of Revenue Expenditure
4.137 The Commission also makes projections of the revenue expenditure of the
State for the award period following the ARIMA model which has been
considered most reliable to forecast the figures of SOTR and SONTR too. The
expenditure requirements in particular, on account of civil administration,
maintenance of law and order, debt servicing and other committed
expenditure and liabilities are duly taken into consideration while forecasting
the revenue expenditures. In this context, we use the actual figures and
figures of revised estimates for the years 2021-22 and 2022-23 respectively.
Thus, the revenue expenditure for the State government is projected as shown
in the table below.
Table 4.28 Projections of revenue expenditure for the State

(₹ in crore)
2022-23
2021-22
Sl. No. Items (Revised 2023-24 2024-25 2025-26
(Actuals)
Estimate)
Revenue
1 8557.49 11840.75 11068.76 12020.3 13131.11
expenditure
~ 80 ~
CHAPTER FIVE
REVIEW OF THE STATUS OF DECENTRALISED GOVERNANCE AND

DEVOLUTION
5.1 Only after India's independence was a democratic system of local governance
established in Mizoram. As enshrined in the Sixth Schedule of the
Constitution of India, the Lushai Hills Autonomous District came into being
in the year 1952, which was followed by the formation of local bodies called
"Village Council". The introduction of Village Councils has replaced the old
traditional chieftainship.
5.2 The Village Council system, which was designed for effective administration
and local governance, was established in 1953 with the enactment of the
Lushai Hills District (Village Council) Act, 1953 and continues to function
today with certain enhancements of powers and functions in response to
changing times.
5.3 The then-Mizo District Council in the State of Assam was elevated to the
status of Union Territory in 1972. Mizoram was divided into three
administrative districts, namely, Aizawl, Lunglei, and Chhimtuipui. Pawi-
Lakher Regional Council was reorganised as Pawi (Lai), Lakher (Mara), and
Chakma Autonomous District Council under the jurisdiction of the then
Chhimtuipui Administrative District. When the Mizo District Council was
dissolved, the provisions of the Dissolution of Mizo District Council
(Miscellaneous Provisions) Order, 1972 ensure the continuation of certain
laws, including the Lushai Hills (Village Council) Act, 1953 and the
Administration of Justice Rules, 1954.
5.4 Mizoram was granted full Statehood in the year 1987 wherein the existing
administrative districts continued to function as before with no modifications,
as did the administrative system at the villages.
5.5 The 73rd Constitutional Amendment Act brings about a transformation of the
local governance system across India, aimed at promoting grassroots
democracy for efficient administration and development. However, the State
of Mizoram is specifically excluded from the provisions of the amendment, and
therefore, its system of local governance remains largely unchanged from its
post-independence era. Despite this, some modifications were made to its local
administrative laws to keep up with the changing demands of administration
and to decentralize power.
Profile of Village Councils
5.6 Table 5.1 shows a brief profile of Village Councils in Mizoram. At present, there
are 533 Village Councils with 2204 elected seats established by the State
~ 81 ~
__________________________________________________________________________________
Government under the provisions of the Lushai Hills District (Village Council)
Act, 1953 as amended, while a total of 284 Village Councils with 1472 elected
seats have been created by the three Autonomous District Councils under
their respective laws, viz., the Lai Autonomous District Council (Village
Council) Act, 2010, the Chakma Autonomous District Council (Village
Council) Act, 2003, and the Mara Autonomous District Council (Village
Council) Act, 1974. In this context, it may be pertinent to mention that a total
of 24 villages within Lunglei Town have been notified by the State
Government's Urban Development and Poverty Alleviation Department to
come within the Lunglei Municipal Area, thus bringing down the number of
Village Councils in the Lunglei district from 113 to 89.
Table 5.1 Profile of Village Councils in Mizoram

Non-
No. of Non-
Sl. No. of elected municipal
District Village municipal
No seats population
Councils area (sq. km)
(Census 2011)
1 Aizawl 69 306 74015 1981.05
2 Lunglei 89 339 74725 3366.99
3 Kolasib 56 168 83955 1586.39
4 Champhai 62 282 71916 1564.46
5 Mamit 90 391 86364 3009.94
6 Serchhip 54 240 65387 1466.78
7 Saitual 44 188 50591 1757.34
8 Khawzawl 38 158 36870 1164.93
9 Hnahthial 32 132 28488 1029.56
A. Sub-total of
533 2204 572311 16927.44
nine districts
10 Lawngtlai
(a) LADC 97 525 72587 1781.64
(b) CADC 88 491 45307 677.00
11 Siaha – MADC 99 456 56574 1519.21
B. Sub-total of
two districts 284 1472 174468 3977.85
in ADC areas
Grand total
817 3676 746779 20905.29
(A+B)
Source: Local Administration Department, Economic Survey of Mizoram (2021-22) and
MIRSAC
5.7 The village administration is indeed significant from the standpoint of overall
governance of the State, with 3676 democratically elected seats from 817
Village Councils covering nearly 7.5 lakhs (i.e., 68.02 percent of the total
population) over a geographical area of 20,905.29 sq. km. The village
administration which caters to more than two-thirds of the total population
cannot be undermined.
~ 82 ~
Chapter 5 : Review of decentralised governance and devolution
__________________________________________________________________________________
Devolution of functions to Village Councils
5.8 The Village Councils established by the State Government under the
provisions of the Lushai Hills District (Village Councils) Act, 1953 as amended
have been devolved several powers and functions by the State Government
through various legislations and subordinate legislations. The Village
Councils derive their power and functions largely from the following Acts and
connected rules:
a) The Lushai Hills District (Village Councils) Act, 1953

b) The Mizo District (Forest) Act, 1955
c) The Mizoram (Land Revenue) Act, 2013
d) The Mizoram Animal (Control & Taxation) Act, 2014
e) The Lushai Hills Autonomous District (Administration of Justice)
Rules, 1953
f) The Mizoram (Prevention and Control of Fire in the Village Ram) Rules,
2001
g) The Mizoram Village (Sanitation) Rules, 2017
5.9 A summary of the powers and functions devolved upon the Village Councils
by the State Government is presented below.
Executive
5.10 Village Councils can allot house sites within the perimeter of a village wherein
house site plan has been made by issuing a House Pass as permissible under
sub-section (1) of section 39 of the Mizoram (Land Revenue) Act, 2013 as
amended. The area of House Pass per family to be allotted by the Village
Council cannot exceed 1337.80 sq. metre or 1 bigha.
5.11 Village Councils are authorised as per sub-section (1) of section 8 of the
Lushai Hills District (Village Councils) Act, 1953 as amended to allot a
particular area within the boundaries of their village for jhum cultivation for
every year.
5.12 In a village where jhum cultivation is practiced, the Village Council concerned
is authorised under sub-section (3) of section 14 of the Mizoram (Land
Revenue) Act, 2013 as amended to allot land for any special economic
programme, as an alternative to jhum cultivation, for a period of 1 (one) year
at the first instance or as may be required.
5.13 Village Councils, under sub-section (2) of section 8 of the Lushai Hills District
(Village Councils) Act, 1953 as amended, have the power to enforce ‘Hnatlang’
(community service) in the interest of the public whenever occasion demands,
provided that no discrimination is made on grounds of religion or caste or class
or any of them. Any person who does not comply with the order of ‘Hnatlang’
is liable to a penalty called ‘Run’ either in kind or in cash which may be fixed
~ 83 ~
__________________________________________________________________________________
by the Government, by order, from time to time not exceeding ₹50/- per day
unless he or she has been exempted from the ‘hnatlang’.
5.14 Section 8(4) of the Lushai Hills District (Village Councils) Act, 1953 as
amended makes the Village Council accountable to the Gram Sabha for all its
functions and decisions taken in its meetings.
5.15 Every Village Council is required to prepare a report in respect of its

administration as per a format prescribed by the Government and submit
such report twice in a year to the State Government. If the report is not
submitted, the State Government may withhold the payment of grants and
remunerations due to the Village Councils thereafter [Section 8(5) of Lushai
Hills District (Village Councils) Act, 1953 as amended].
5.16 The Village Council is mandated to ensure the sanitation and cleanliness of
a village under section 11 of the Lushai Hills District (Village Councils) Act,
1953 as amended and in this regard, enforce the provisions of the Mizoram
Village (Sanitation) Rules, 2017 within their respective jurisdiction. The
Village Council is responsible for the maintenance of cleanliness of the streets
within its territorial limit and, if considered necessary, provide dustbin or
receptacle in any suitable place. Disposal of waste or garbage is the duty of
the Village Councils. To ensure the general cleanliness of the village, it is
mandatory for the Village Council to organise mass community work for
cleaning of streets, drains, water points and public places at least twice a
year during the month of February and October under rule 4 of the aforesaid
rules. In other words, the subject matter of solid waste management falls
under the domain of the Village Councils.
5.17 Rule 5 of the Mizoram Village (Sanitation) Rules, 2017 entrusts upon the
Village Councils the responsibility of maintaining all water points in a village.
In fact, the rules go a step further in empowering the Village Councils to
make local rules relating to preservation of water source, prevention against
encroachment and pollution. A Village Water Committee is to be formed to
assist the Village Council in the preservation of water source, distribution of
piped water supply and maintenance of cleanliness in the water points.
5.18 No assembly or meetings, outdoors or in a makeshift pavilion for the sake of

entertainment, exhibition or fairs shall be conducted by any person(s) within
a village area without the previous knowledge of the Village Council
concerned as per rule 7 of the Mizoram Village (Sanitation) Rules, 2017. Any
person(s) planning to organise such types of meetings, assembly, exhibitions
etc., are required to apply for permission from the Village Councils with
details of the arrangement for collection and disposal of waste.
5.19 A Village Council is also mandated to provide public toilet or urinals as per
the requirement of the village under rule 8 of the Mizoram Village (Sanitation)
~ 84 ~
__________________________________________________________________________________
Rules, 2017.
5.20 A Village Council is also mandated to form a Village Sanitation Committee to

assist and give advice to the Village Councils in the enforcement of the
provisions of the Mizoram Village (Sanitation) Rules, 2017. In addition, a
Village Council is also authorised under rule 12 of the aforesaid rules to make
guidelines relating to the general cleanliness of the village concerned not in
contravention to the principal rules.
5.21 For ensuring sanitation and hygiene in a village, the Village Councils are
empowered under the Mizoram Animal (Control and Taxation) Act, 2014 to
exercise control over animals especially those trespassing into land or
property causing damage. Section 6 of the said Act empowers the Village
Council, if considered necessary, to declare and specify suitable land for
animal grazing ground with the approval of State Government so as to ensure
that animals have free movement within such area in search of food for
themselves.
5.22 Section 11A of the Lushai Hills District (Village Councils) Act, 1953 as
amended specifies that the Village Council is responsible for convening a
meeting of the Gram Sabha, the quorum of which is 10% of the registered
voters of the concerned village. The Village Council is required to conduct at
least three Gram Sabha meetings in a year. The Gram Sabha or the village
assembly is responsible for approving the annual plans, programmes and
projects for social and economic development in respect of the village
concerned before such plans, programmes and projects are taken up for
implementation. The Gram Sabha is also responsible for the identification or
selection of persons as beneficiaries under poverty alleviation and other
programmes. The Gram Sabha and the Village Council is to be consulted
before making resettlement and rehabilitation of persons affected.
5.23 Rule 4 of the Mizoram (Prevention and Control of Fire in the Village Ram)
Rules, 2001 empowers the Village Councils to prevent and control fire in a
jungle and jhum area. The rule mandates the Village Councils to specify a
period every year for cutting of jungle including all preparatory activities for
the purpose of jhum cultivation. Village Councils are also mandated to specify,
by order, a date for burning of jhum-land, which is to be made known to all
villagers at least three days ahead of the fixed date. In case there is a danger
of fire spreading beyond the jhum land, Village Councils are further mandated
to enforce “hnatlang” for the purpose of making “meilam” before undertaking
actual burning of the jhum land. Rule 5 of the aforesaid rules further
empowers the Village Councils to prevent and control fire in areas other than
jhum area and jungle.
5.24 Protection and conservation of village forest reserves viz., village safety
reserve, village supply reserve and protected forest reserve is an important
~ 85 ~
__________________________________________________________________________________
responsibility endowed upon the Village Councils. The management,

protection and conservation of village forest reserves is carried out in
accordance with the provisions of the Mizoram (Forest) Act, 1955.
5.25 To formulate village development schemes, to supervise development works

received from the State Government through various agencies [sub-section (1)
of section 8A of the Lushai Hills District (Village Councils) Act, 1953 as
amended].
5.26 To help various Government agencies in carrying out development works in

the village [sub-section (2) of section 8A of the Lushai Hills District (Village
Councils) Act, 1953 as amended].
5.27 To take up development works on its own initiative or on request by the

Government [sub-section (3) of section 8A of the Lushai Hills District (Village
Councils) Act, 1953 as amended].
5.28 To convene regular social audit for successful implementation of development

works in the village [sub-section (4) of section 8A of the Lushai Hills District
(Village Councils) Act, 1953 as amended].
5.29 To administer relief and rehabilitation to the people during calamities [sub-
section (8) of section 8A of the Lushai Hills District (Village Councils) Act, 1953
as amended].
5.30 To assist the State Government in public distribution system [sub-section (9)
of section 8A of the Lushai Hills District (Village Councils) Act, 1953 as
amended].
5.31 To initiate or assist the State Government in all preventive measures on the
outbreak of an epidemic or infectious disease [sub-section (10) of section 8A
of the Lushai Hills District (Village Councils) Act, 1953 as amended].
5.32 To co-operate with Government officials in charge of any of the above functions
within its jurisdiction [sub-section (11) of section 8A of the Lushai Hills
District (Village Councils) Act, 1953 as amended].
5.33 Every Village Council is also mandated to constitute a Biodiversity

Management Committee (BMC) within its jurisdiction under rule 22 of the
Biological Diversity Rules, 2004 notified by the Central Government. The main
function of the BMC is to prepare People’s Biodiversity Register in consultation
with local people. The Register shall contain comprehensive information on
availability and knowledge of local biological resources, their medicinal or any
other use or any other traditional knowledge associated with them. The
Committee is also mandated to maintain a Register giving information about
the details of the access to biological resources and traditional knowledge
granted, details of the collection fee imposed and details of the benefits derived
~ 86 ~
__________________________________________________________________________________
and the mode of their sharing. So far, 534 Biodiversity Management

Committees have been formed in different villages.
Judicial
5.34 The functions of Village Councils, inter alia, include administration of justice
with enabling powers flowing from the provisions of an archaic rule viz., the
Lushai Hills Autonomous District (Administration of Justice) Rules, 1953 as
amended. Under rule 6 of the aforesaid rules, the Village Council for each
village or a smaller body consisting of not less than three members of the
Council as elected by the Council in this behalf, shall sit as the Village Court
with its jurisdiction extending to the hearing and trial of suits and cases
arising within the territorial limits of the village.
5.35 A Village Court, under rule 14 of the Lushai Hills Autonomous District
(Administration of Justice) Rules, 1953 as amended, is competent to try cases
of civil and miscellaneous nature falling within the purview of the village or
tribal laws and customs in which both the parties belong to a Scheduled tribe
residing within its jurisdiction.
5.36 On the criminal side, Village Courts are competent to try cases falling within
the purview of tribal laws and customs and offences of petty nature, such as
petty theft and pilfering, mischief and trespass of petty nature, simple assault
and hurt, affront and affray of whatever kind, drunken or disorderly brawling,
public nuisance and simple cases of wrongful restraint. However, Village
Courts are not competent to try offences in respect of which the punishment
of imprisonment is obligatory under the Indian Penal Code.
5.37 Under rule 15 of the Lushai Hills Autonomous District (Administration of

Justice) Rules, 1953 as amended, a Village Court is empowered to impose a
fine for any offence it is competent to try, which may extend to ₹500/-
according to the nature of offence. It may award payment in restitution or
compensation to the aggrieved or injured party in accordance with the
customary law. In a civil case, a Village Court is authorised to award all costs,
as also compensation to those against whom unfounded or vexatious suits
and cases have been instituted before the Court.
5.38 Under rule 16 of the Lushai Hills Autonomous District (Administration of

Justice) Rules, 1953 as amended, a Village Court has the power to order
attendance of the accused and the witnesses to be examined in the case and
to impose a fine not exceeding ₹100/- on any person wilfully failing to attend
when so ordered. Under rule 18 of the aforesaid rules, where a Village Court
is of opinion that the sentence it is competent to pass is insufficient in the
circumstances of the case it shall refer the case to the competent Court, and
the Court shall dispose of the case in accordance with these rules.
~ 87 ~
__________________________________________________________________________________
Financial
5.39 Section 15 of the Lushai Hills District (Village Councils) Act, 1953 as amended
mandates that a Village Council Fund be formed for every Village Council
where any collection authorised by law other than District revenue and taxes
made in a village for the good of the people shall be paid into the said Fund.
A separate account is operated for this purpose.
5.40 The Village Councils are also empowered to collect property tax within their
respective jurisdictions on such items, and at such rates, as may be
determined by the State Government from time to time [Section 15(2) of the
Lushai Hills District (Village Councils) Act, 1953 as amended]. In fact, sub-
section (5) of section 8A of the Lushai Hills District (Village Councils) Act, 1953
inserted vide an amendment of the Act in the year 2014 also empowers the
Village Councils to collect property tax as prescribed by the State Government
5.41 Village Councils are authorised to realize registration fees for each litigation
within its jurisdiction as per the provisions of sub-section (6) of section 8A of
the Lushai Hills District (Village Councils) Act, 1953 as amended.
5.42 A nominal fee not exceeding ₹500/- per day can be charged by the Village
Council while according permission for organising meetings, assembly,
exhibitions, fairs etc., as per rule 7(3) of the Mizoram Village (Sanitation)
Rules, 2017.
5.43 Animal tax, at such rates notified by the State Government, can be collected
by the Village Councils within their respective jurisdiction under section 13
of the Mizoram Animal (Control and Taxation) Act, 2014 and 50% of the
proceeds of the tax shall be credited to the Village Council Fund.
5.44 The Village Councils shall collect registration fee while registering every
animal, young and adult, from the owner of such animals at the rates notified
by the State Government from time to time. The proceeds of the registration
fee shall be credited to the Village Council Fund as per section 12 of the
Mizoram Animal (Control and Taxation) Act, 2014. In fact, all fines collected
under the aforesaid Act are to be credited into the accounts of the Village
Council Fund as provided under section 19 of the said Act.
5.45 A Village Council is empowered to raise fund for public utility within its
jurisdiction by passing a resolution subject to the approval of the State
Government in line with the provisions under sub-section (7) of section 8A of
the Lushai Hills District (Village Councils) Act, 1953 as amended.
Functions performed by Village Councils
5.46 Following the powers and functions devolved upon the Village Councils
through various Acts and the corresponding rules, the core functions
~ 88 ~
__________________________________________________________________________________
performed and the services delivered by the VCs may be summarised as

follows:
a) Allotment of house sites within the perimeter of a village wherein house

site plan has been made by issuing a House Pass.
b) Allotment of a particular area within the boundaries of a village for jhum

cultivation on a yearly basis.
c) Village Councils enforce ‘Hnatlang’ for the larger benefits of the

community as and when the situation demands.
d) Ensuring sanitation and cleanliness of a village has become one of the

most important functions of the Village Councils. They organise hnatlang
for cleaning of streets, drains, water points and public places. Collection
and disposal of solid waste has assumed an important place in the
plethora of functions of the Village Councils.
e) Maintenance of all water points in a village. In fact, Village Councils from

time to time make local rules for the preservation of water source as also
prevention against encroachment and pollution. In a number of villages,
Village Councils also play an important role in distribution of piped water
supply to the households.
f) Control of animals especially those trespassing causing damage to

properties. Registration of animals including collection of the animal tax.
g) Convening of the Gram Sabha for approving the annual plans,

programmes and projects for social and economic development of the
village.
h) Convening of social audit for monitoring and evaluation of the

implementation of various development programmes.
i) Prevention and control of fire in a jungle and jhum area besides making
“meilam’ before undertaking actual burning of jhum land.
j) Protection and conservation of village forest reserves viz., village safety

reserve, village supply reserve and protected forest reserves.
k) Administering justice as the Village Court which consists of hearing and

trial of suits and cases arising within the territorial limits of the village.
l) Administering relief and rehabilitation to people during calamities through

the Village Level Disaster Management Committee.
~ 89 ~
__________________________________________________________________________________
m) Maintenance of street lights.
n) Identification and maintenance of burial grounds.
o) Executing development works as an implementing agency for local body

grants from Union Finance Commissions. Such works relate to water
conservation, drinking water supply, solid waste management, sanitation,
development of internal roads, construction and maintenance of
community assets such as community halls, playgrounds, Village Council
house, public library, etc.
p) Village Councils also serve as an implementing agency for execution of

works under Centrally Sponsored Schemes through Committees either
formed under the Village Councils or headed by the President of the Village
Councils. One such example is the implementation of Mahatma Gandhi
National Rural Employment Guarantee Scheme through the Village
Employment Council headed by the President of the Village Council as the
Chairman.
5.47 In certain areas of administration, the Village Councils are more empowered
as compared to their counterparts viz., the Gram Panchayats under the
Panchayati Raj Institutions. The extent of devolution of powers to the Village
Council is considerably greater than the PRI system in respect of the following
cases:
a) Allotment of jhum land.

b) Allotment of house site.
c) Enforcement of Hnatlang (community service).
d) Administration of justice as Village Council Court for trying of petty
offences.
Devolution of functions to Village Councils under Autonomous District

Councils
5.48 The Village Councils under the three Autonomous District Councils are
established by an enabling Acts enacted under clauses (e) and (f) of sub-
paragraph (1) of paragraph 3 of the Sixth Schedule to the Indian Constitution.
Thus, Village Councils in Sixth Schedule areas are essentially the creations of
District Councils, with powers and functions devolved as specified in the
relevant Acts.
5.49 Table 5.2 compares the extent to which powers and functions are devolved to
Village Councils in the three District Councils, namely the Autonomous
District Councils of Chakma, Lai, and Mara.
~ 90 ~
__________________________________________________________________________________
Table 5.2 Comparison of devolution of powers and functions to Village

Councils under the three Autonomous District Councils
Village Councils in Village Councils in Lai Village Councils in Mara

Chakma Autonomous Autonomous District Autonomous District
District Council Council Council
Enabling Act: Chakma Enabling Act: Lai Enabling Act: Mara
Autonomous District Autonomous District Autonomous District Council
Council (Village Council) Council (Village Council) (Village Council) Act, 1974 as
Act, 2003 as amended Act, 2010 as amended amended
a) cleaning of Village a) cleaning of Village a) cleaning of Village roads
roads and paths; roads and paths; and paths;
b) sanitation and b) sanitation and b) sanitation and
conservancy in the conservancy in the conservancy in the
village area and the village area and the village area and the
prevention of public prevention of public prevention of public
nuisance; nuisance; nuisance;
c) construction, c) construction, c) construction,
maintenance and maintenance and maintenance and
improvement of ghat, improvement of improvement of
pond and well for the public wells and “Tikhao” for the supply
supply of water to the tanks for the supply of water to the village for
village for drinking, of water to the village drinking, washing and
washing and bathing drinking, washing bathing purpose;
purpose; and bathing
purposes;
d) opening of, and d) opening of, and d) opening of, and
regulating burial and regulation of burial regulating burial and
cremation grounds for and cremation cremation grounds for
the disposal of dead grounds for disposal disposal of dead bodies
bodies of human being of dead bodies of of human being and
and allocation of the human being; allocation of the places
places for disposal of for disposal of a dead
dead animals and other animals and other
offensive matters; offensive matters;
e) taking of curative and e) taking of curative and e) taking of curative and
preventive measure in preventive measures prevention measures in
respect of an epidemic; in respect of an respect of an epidemic;
epidemic;
f) construction, f) construction, f) construction,
maintenance and maintenance and maintenance and
improvement of village improvement of improvement of village
communication, drains village communications, drains
and waterways: communication and waterways;
systems, drains and
water ways;
g) control of village g) control of village g) control of village grazing
grazing grounds, grazing grounds, grounds, location of
allocation of grazers location of graziers grazier's "Khuties"
"Khutis" within the “khuties” within the
within the village area,
village area, village village area, village
~ 91 ~
__________________________________________________________________________________
common and other community and other village common and

property; community property; other communal
property;
h) regulating the h) regulating h) regulating the
construction of new construction of new construction of new
building or house or building or houses or building or house, or
extension or alteration extension or the extension or
of any such existing alteration of any such alteration of any such
ones: existing ones; existing ones;
i) anti-malaria and anti- i) anti-Malaria and anti i) anti-malaria and anti-
kalazar measures and Kala-azar measures; kala-azar measures and
enforcement of enforcement of
vaccination; vaccination;
j) registration of births j) submission of j) registration of births
and deaths and quarterly report and deaths and
maintenance of register relating to the birth maintenance of registers
and death also
for the purpose; for the purpose;
submission of the
information regarding
the shifting in and
out of families, in the
form prescribed by
the Executive
Committee;
k) supplying of local k) supplying local k) supplying local
information as and information as and information as and
when required to the when required to the when required to the
District Council or the District Council or District Council or the
State Government; the State State Government;
Government;
l) necessary measure for l) measures necessary l) measure necessary for
the preservation of for the preservation of the preservation of
public health and for public health; public health and for
improving the improving the
sanitation, conservancy sanitation, conservancy
or drainage of the or draining of the village
village area; area;
m) measures of public m) measures of public m) measures of public
utility are to be utility calculated to utility calculated to
calculated to promote promote the moral promote the moral and
and material well-
the moral and material material well-being of
being of the villagers;
well-being of the the villagers;
villagers;
n) planting trees at the n) planting of trees at n) planting of trees at the
site of public places, on the site of public sites of public places, on
village roads and paths places on village village roads and paths
and taking care of roads and paths and taking care of them;
them; taking care of them;
o) working and o) o) working and
maintenance of public maintenance of public
audio and visual sets radio sets for the benefit
of the villagers;
~ 92 ~
__________________________________________________________________________________
for the benefit of the

villagers;
p) establishment and p) establishment and p) establishment and
maintenance of maintenance of maintenance of
libraries and reading libraries, reading libraries, reading-rooms,
rooms, social and
rooms, cultural clubs social and cultural
cultural clubs or
or other places for other places for clubs or other places for
recreation and games; recreation and games; recreation and games;
q) popularization of q) popularization of q) popularization of
indigenous sport, folk sports including indigenous sports, folk-
dance, folk-songs and indigenous sports, dance, folk-songs and
organization and folk-dances, folk-song organisation and
celebration of national and organization and celebration of national
and other local celebration of and other local festivals;
festivals; national and other
local festivals;
r) preservation of r) fire protection within r) any other functions and
monuments; its village jurisdiction; powers as may be
delegated by the
Governor or the
Executive Committee
from time to time;
s) allotment of land s) distribution of the s) allotment of a particular
within a village for Jhum and subsidiary region or area within the
jhuming in each Jhum land in boundaries of each
particular year and the
accordance with laws village for Jhum, Tohi or
distribution of jhum
shall be done in made by the District Atulyu each particular
accordance with the Council; year, and the
laws frame by the distribution of the Jhum
District Council; and Tohi plots shall be
done in accordance with
the laws framed by the
District Council;
t) Power to enforce t) control and regulation t) regulation and order of
community work viz., of Hnatlang in "Tlarai or Vatlarai" i.e.,
Dajakam with the accordance with the community work with
power to impose fines
power to impose fines provision of the laws
upon defaulters;
on defaulters; of the District
Council;
u) maintenance of village u) u)
population register and
power to control
migration from one
village to another;
v) responsible for the v) responsible for the v) responsible for the
sanitation of the sanitation of the sanitation of the Village;
Village; Village;
w) Village Council Fund to w) Village Council Fund w) Village Council Fund to
be formed for every to be formed for every be formed for every
Village Council where Village Council where Village Council where
~ 93 ~
__________________________________________________________________________________
any collection any collection any collection

authorised by law other authorised by law authorised by law other
than District Council other than District than District Council
revenue and taxes Council revenue and revenue and taxes made
made in a village for taxes made in a in a village for the good
the good of the people village for the good of of the people shall be
shall be paid into the the people shall be paid into the said Fund;
said Fund; paid into the said
Fund;
x) Village Council can x) Village Council can x) Village Council can
frame its rules for the frame its rules for the frame its rules for the
administration of the administration of the administration of the
village in accordance village in accordance village in accordance
with the need of the with the need of the with the need of the
village; village; village;
y) No person to construct y) Village Council have y) No person to construct a
a house for any powers to make house without the
purpose without the allotment of written permission of
written permission temporary house site the Village Council;
from the Village and no person to
Council; construct a house for
any purpose without
the written
permission from the
Village Council;
z) Village Council is z) z) selection of individual
responsible for the beneficiaries under
identification and/or various welfare and
selection of persons as development schemes;
beneficiaries under the
poverty alleviation and
other programmes;
aa) Every Village Council aa) a Village Court in aa) Village Council
to obtain from the each village for the accountable to the
Gram Sabha a trial of suit and cases Village Assembly for all
certificate of utilization falling within the its functions,
of funds for the plans, customary laws and expenditure, approval of
programs and projects practices of the village plans and approval of
executed by them; community with utilization certificates:
power to try petty
thefts and petty
crimes in which the
punishment may
extend to a maximum
of ₹500 (Rupees five
hundred) only;
Provision for devolution of Provision for devolution of Provision for devolution of
additional functions: additional functions: additional functions:
Sec. 20A.- The Governor, on Sec 12(19).- Any other Sec 20A.- The Governor on
the recommendations of the powers and functions as the recommendation of the
Executive Committee, may may be empowered by Executive Committee from
allocate from time to time all relevant rules of the time to time may allocate all
~ 94 ~
__________________________________________________________________________________
or any of the functions District Council made from or any of the functions listed
listed in the Eleventh time to time in the Eleventh Schedule of
Schedule to the the Constitution of India to
constitution, to any Village the Village Council or
Council and demarcate the Councils and demarcate the
roles of the Village Council, roles of the Village Council
the District Council and the and the District Council in
State Government in these these areas
areas.
Devolution of powers to Village Councils in other Acts of the district councils
Power to regulate the In the village where master Collection of animal tax and
brewing and selling of wine plan and detailed plan or registration of animals [Sec.
[Sec. 140 of the Chakma site plan have not been 20 & 21 of Lakher
Customary Laws Code done, house site shall be Autonomous District Council
1997] allotted by the Village (Animals Control & Taxation)
Council by giving a pass. Act, 1983]
[Sec. 12 of Lai
Autonomous District
Council Land Holding and
Settlement Act, 2002]
Village Council to sit as the Village Council for each Village Council to sit as the
Village Court with its Village shall sit as the Village Court with its
jurisdiction extending to the Village Court and the jurisdiction extending to the
hearing and trial of suits jurisdiction of a Village hearing and trial of suits and
and cases arising within the Court shall extend to the cases arising within the
territorial limits of the hearing and trial of suits territorial limits of the village.
village. and cases arising within
the territorial limits of the A Village Court is competent
A Village Court is competent Village. [Sec. 6 of Pawi to try cases of civil and
to try cases of civil and Autonomous District miscellaneous nature falling
miscellaneous nature falling Council (Administration of within the purview of the
within the purview of the Justice) Rules, 1974] village or tribal laws and
village or tribal laws and customs in which both the
customs in which both the parties belong to a Scheduled
parties belong to a tribe residing within its
Scheduled tribe residing jurisdiction. [Sec. 13 of the
within its jurisdiction. [Sec. Mara Autonomous District
10 of the Pawi-Lakher Council (Administration of
Autonomous Region Justice) Rules, 1981]
(Administration of Justice)
Rules, 1954]
Village Council has the Village Council has the
power to distribute land power to distribute land for
for jhums within the jhums within the Council
Council forests other than forests other than reserved
reserved forests [ Sec. 15 forests [ Sec. 14 of the
of the Pawi Autonomous Lakher Autonomous District
District Council (Forests) (Forests) Act, 1981]
Act, 1979]
~ 95 ~
__________________________________________________________________________________
5.50 A cursory examination of the delegation of powers and functions to Village

Councils in Sixth Schedule areas reveals that Village Councils are endowed
with nearly identical powers and perform similar functions across the three
District Councils. The enabling Acts also include provisions for delegating
additional functions to Village Councils along the lines of the functions listed
in the Constitution's Eleventh Schedule. However, the devolution of functions
differs significantly from the 29 functions listed in the Eleventh Schedule for
Panchayats.
5.51 While the State Government and Autonomous District Councils have devolved
a number of functions to Village Councils, a comparison of the functions
prescribed by the Eleventh Schedule of the Constitution to enable Panchayats
to become institutions of self-government and the functions devolved as per
law to Village Councils in Mizoram as in Table 5.3 presents a less than
desirable picture, with no functions from the Eleventh Schedule devolved as
per law to Village Councils. Although the provisions in Part IX of the
Constitution pertaining to Panchayats are not applicable for the State of
Mizoram, yet devolution of functions listed in the Eleventh Schedule to the
Village Councils serves as an important barometer for analysing the extent of
functional devolution to the Village Councils since the same will enable them
to function as institutions of local self-government.
Table 5.3 Functions devolved to Village Councils vis-à-vis functions listed in

the Eleventh Schedule of the Constitution
Sl. Name of function as listed in Whether If the answer in Col. (3) is No,
No. Eleventh Schedule of the function name of the Department with
Constitution devolved whom the function is currently
as per law assigned
to VC?
1 2 3 4
1 Agriculture, including No Agriculture Department
agricultural extension
2 Land improvement, No Land Revenue and Settlement
implementation of land reforms, Department
land consolidation and soil and Land Resources, Soil and
conservation Water Conservation Department
3 Minor irrigation, water No Agriculture Department and
management and watershed Irrigation and Water Resources
development Department
4 Animal husbandry, dairying No Animal Husbandry and Veterinary
and poultry Department
5 Fisheries No Fisheries Department
6 Social forestry and farm forestry No Environment, Forest and Climate
Change Department
7 Minor forest produce No Environment, Forest and Climate
Change Department
~ 96 ~
__________________________________________________________________________________
8 Small scale industries, No Commerce and Industries

including food processing Department
industries
9 Khadi, village and cottage No Commerce and Industries
industries Department
10 Rural housing No Rural Development Department
11 Drinking water No Public Health Engineering
Department
12 Fuel and fodder No Animal Husbandry and Veterinary
Department
13 Roads, culverts, bridges, ferries, No Public Works Department
waterways and other means of
communication
14 Rural electrification, including No Power and Electricity Department
distribution of electricity
15 Non-conventional energy No Power and Electricity Department
sources
16 Poverty alleviation programme No Rural Development Department
17 Education, including primary No School Education Department
and secondary schools
18 Technical training and No Commerce and Industries
vocational education Department
19 Adult and non-formal education No School Education Department
20 Libraries No Art & Culture Department
21 Cultural activities No Art & Culture Department
22 Markets and fairs No Commerce and Industries
Department
23 Health and sanitation, No Health & Family Welfare
including hospitals, primary Department
health centres and dispensaries
24 Family Welfare No Health & Family Welfare
Department
25 Women and child development No Social Welfare & Tribal Affairs
Department
26 Social welfare, including welfare No Social Welfare & Tribal Affairs
of the handicapped and Department
mentally retarded
27 Welfare of the weaker No Social Welfare & Tribal Affairs
sections, and in particular, Department
of the Scheduled Caste
and the Scheduled Tribes
28 Public distribution system No Food, Civil Supplies and
Consumer Affairs Department
29 Maintenance of community No Rural Development Department
assets and Local Administration
Department
Source: Local Administration Department
~ 97 ~
__________________________________________________________________________________
5.52 In order to enable the Village Councils to function as institutions of self-

government with the capacity to deliver core civic services to the citizens, they
are indeed required to be endowed with necessary powers and functions on
the lines of the functions prescribed by the Eleventh Schedule of the
Constitution for Panchayats. Towards this end, the First State Finance
Commission of Mizoram recommended, among others, that Activity Mapping
be done to propose roles and responsibilities of the Village Councils. The same
has not been considered by the State Government and hence, no suitable
action taken till date. We consider it appropriate to expand the list of
functional activities to be devolved to the Village Councils from the
earlier recommendations of the First State Finance Commission in
paragraph 2.25 of the report. Thus, the following subjects and functional
activities listed in Table 5.4 may be devolved sooner than later to the
Village Councils established under the State Government and the
Autonomous District Councils to enable them to function as institutions
of local self-government:
Table 5.4 Activity mapping of functions proposed for devolution to Village

Councils
Sl. Function as listed in Proposed functional activity to be devolved to
No. Eleventh Schedule of Village Councils
the Constitution
1 2 3
1 Agriculture, including a) To prepare a comprehensive agriculture data base
agricultural extension for the village.
b) To assist in advising farmers about remunerative
cropping system, crop diversification, appropriate
new technology etc.
c) To prepare crop plan for the village through
participatory approach.
d) To generate awareness among the farmers on
various agricultural activities including organic
farming.
e) Adoption of improved agricultural practices and
modern implements.
f) To avail need based trainings and utilization of new
technologies in the farmers’ field.
g) To assess losses due to flood, pest attack, cloud
burst, etc. in the village and assess in the
implementation of contingency plan for
rehabilitation.
h) To motivate farmers for taking up crop insurance
facilities.
i) To assess credit need of the farmers in different
seasons and establish linkages for credit
accordingly.
j) To help in the formation of Self Help Groups.
~ 98 ~
__________________________________________________________________________________
k) To create awareness among the farmers about post-

harvest management.
l) To facilitate construction and maintenance of
agriculture link roads.
2 Land improvement, a) Soil conservation
implementation of land b) Identification of sites and measures for
reforms, land implementation soil conservation plans
consolidation and soil
c) To facilitate line departments in the preparation
conservation
and implementation of the soil conservation
projects.
d) Creation of public opinion in favour of use of soil
only in consonance with its properties, gradients
etc.
3 Minor irrigation, water a) Formulation of minor irrigation projects in
management and consultation with Gram Sabha
watershed development b) To identify beneficiaries for the minor irrigation
projects through Gram Sabha.
c) To assist the line department in preparing plan for
renovation and maintenance of minor irrigation
works
d) To facilitate the timely and equitable distribution
and full use of water under irrigation schemes
e) To provide assistance in identification of ground
water sources
f) Collection and compilation of comprehensive
database for watershed projects
g) To identify beneficiaries for the watershed
development projects through Gram Sabha.
h) To assist the line departments in preparation of
project report for watershed development project
i) To assist the functioning of watershed committee
j) To create awareness about watershed projects and
low cost technologies.
k) Maintenance of community assets created under
various minor irrigation and watershed
development projects.
l) To encourage farmers to develop field channels and
such other system for proper utilization of water.
4 Animal husbandry, a) To report outbreak of disease and epidemics

dairying and poultry b) To identify beneficiaries for various
programmes/projects pertaining to animal
husbandry, dairy development, poultry, etc.
through the Gram Sabha in coordination with the
line department
c) To motivate people to maintain quality breeds and
adopt modern methods of maintaining livestock.
d) To assist in organizing milk clusters, federation and
societies for dairy development
~ 99 ~
__________________________________________________________________________________
e) To assist in establishing Cooperative/individual

fodder farm
f) To identify community land/waste land for fodder
production
g) To control grazing and improve grazing and pasture
lands
5 Fisheries a) To develop village ponds for fisheries.
b) To identify beneficiaries for assistance under
various programmes
c) To assist beneficiaries in organizing fishermen’s
cooperatives/SHGs.
d) To facilitate line departments in formulation of
projects for fisheries development.
e) To provide support to the fish farmers to avail credit
from financial institutions.
f) To organize fisherman/fish farmers/SHGs/NGOs
for training.
g) Local level assistance for enforcement of statutory
regulations relating to fisheries.
h) To organize local level fisheries enforcements
squads.
6 Social forestry and farm a) To identify wasteland for social forestry in

forestry consultation with Gram Sabha.
b) To execute social forestry projects in a participatory
manner and encourage private farmers.
c) To distribute seedlings and saplings in coordination
with line departments
d) To identify and utilise areas suitable for fruit
bearing trees.
e) To create awareness to encourage plantation of
medicinal plants, aeromatic plants, etc
f) To plant trees in community land and propagate
fuel, fodder and timber producing plant
7 Minor forest produce a) To identify families willing to plant species
generating minor forest products.
b) To distribute seedlings and saplings.
c) To facilitate formation of cooperative/SHG on minor
forest products.
d) To promote collection, processing and value
addition of minor forest products.
e) To liaise with the line department for processing
and marketing of minor forest products.
8 Small scale industries, a) To facilitate formulation of projects in consultation
including food processing with District Industries Centre/Mizoram Khadi &
industries Village Industries Board and other agencies.
b) To identify suitable location and entrepreneurs for
rural small scale industries.
c) To coordinate with banks and financial institutions
for credit support to the entrepreneurs.
~ 100 ~
__________________________________________________________________________________
d) To identify beneficiaries for assistance under

various programmes
9 Khadi, village and a) To facilitate the line department in project
cottage industries formulation for development of cottage industries
b) To identify beneficiaries for assistance under
various programmes
c) To facilitate formation of cooperative/SHG
pertaining to cottage industries.
d) To coordinate with banks and financial institutions
for credit support to the entrepreneurs/
cooperatives.
10 Rural housing a) To identify beneficiaries for rural housing through
the Gram Sabha.
b) To supervise and monitor implementation of such
rural housing schemes
c) To allot house sites to landless households
11 Drinking water a) To identify the extent of water scarcity/problem in
the village.
b) To identify and assess the existing water supply
schemes, spring sources, etc.
c) To facilitate line department in formulation of water
supply projects for providing drinking water
facilities to needy areas.
d) To maintain village water supply scheme to ensure
adequate supply of water
e) To collect fees, etc. from citizens for providing water
supply services.
f) To facilitate the line department in fixing
operational and technical problems pertaining to
water supply.
g) To identify beneficiaries for assistance under
various programmes
12 Fuel and fodder a) Assessment of the fuel and fodder requirements of
the village
b) To identify suitable land for plantation of fuel and
fodder species.
c) To undertake plantation after proper identification
of species
d) To select beneficiaries for various programmes.
e) To maintain plantations in community lands and
oversee the distribution of fuel and fodder from
such land.
f) To establish nurseries for development of fuel and
fodder.
13 Roads, culverts, bridges, a) Construction of link roads and internal roads
ferries, waterways and including culverts, minor bridges, drainage,
other means of retaining walls, etc.
communication b) To assist the line departments in formulation of
road projects.
~ 101 ~
__________________________________________________________________________________
c) Identification of waterways, arrange ferries and

regulate ferry services.
d) To provide necessary support in the
implementation of PMGSY projects in the
grassroots level.
14 Rural electrification, a) To maintain and operate street lights.
including distribution of b) To identify land for installation of electric poles.
electricity c) To monitor power supply to the village.
d) Vigilance and reporting against theft and illegal
connection.
e) To help poor families in obtaining power supply
15 Non-conventional energy a) To promote the use of non-conventional energy
sources sources such as solar, wind, and biomass energy.
b) To encourage the installation of solar street lights,
solar water heaters, and other renewable energy
systems in the rural areas.
c) To facilitate the implementation of micro-hydro
power projects and bio-gas plants.
d) To encourage the development of small-scale wind
energy projects and biomass energy projects.
e) Creating awareness about the benefits of renewable
energy among the rural population and promoting
the use of clean energy technologies.
f) Monitoring the maintenance of renewable energy
systems installed in the rural areas and ensuring
their proper functioning.
g) Supporting the development of rural enterprises
that are based on renewable energy sources.
16 Poverty alleviation a) To identify individual beneficiaries under different

programme poverty alleviation programmes such as
MGNREGS, NRLM, PMAY, NSAP, etc. after
obtaining approval of the Gram Sabha.
b) To formulate annual action plan under various
schemes such as MGNREGS, etc. and obtain
approval of the Gram Sabha.
c) To ensure wage employment to persons willing to
do unskilled manual work in the villages.
d) To ensure social audit of works through the Social
Audit Units and the Gram Sabha.
e) To mobilise fund under different programmes for
development of infrastructure in the village.
f) To ensure proper utilization of grants from Union
Finance Commission/State Finance Commission
and ensure completion of works in the village.
g) To facilitate formation of SHG/Cooperative in the
village.
h) To facilitate SHGs/Cooperatives in obtaining credit
support from banks and financial institutions.
17 Education, including a) To undertake enrolment drive to ensure universal
primary and secondary enrolment in primary and secondary schools
schools b) Vigilance on attendance of students & teachers
c) To inspect and supervise schools & establishments
~ 102 ~
__________________________________________________________________________________
d) Monitoring implementation of mid-day meal

scheme.
e) To identify schools for providing safe drinking
water, toilet facilities, etc.
18 Technical training and a) To facilitate line departments in selecting

vocational education prospective students for technical training and
vocational education.
b) To generate awareness about the importance of
vocational training.
19 Adult and non-formal a) To identify beneficiaries to be assisted under adult
education and non-formal education programmes
20 Libraries a) Establishment and maintenance of libraries,
reading-rooms, etc.
b) To promote literacy and adult education through
libraries.
21 Cultural activities a) To encourage local artists, craftsmen, and artisans
by organizing cultural events and exhibitions to
showcase their work.
b) To protect and preserve local cultural heritage sites,
such as monuments, and other places of historical
significance.
c) To organize cultural events and festivals to
celebrate the local cultural heritage, such as
traditional dances, music, and plays.
d) To promote sports and games, especially those that
are part of the local cultural heritage.
e) To develop cultural infrastructure, such as building
community halls, cultural centers, and
auditoriums to promote cultural activities in the
local community.
22 Markets and fairs a) To identify locations for development of village

markets.
b) To facilitate preparation of project proposals for
construction of village markets.
c) To accord permission for organising village fairs,
entertainment, public meetings, etc.
23 Health and sanitation, a) To facilitate formation of village health and
including hospitals, sanitation committee comprising of representatives
primary health centres from various quarters.
and dispensaries b) Maintenance of general cleanliness and sanitation
of the village.
c) Mobilising and organizing people for health, family
planning and immunization.
d) To assist in construction of individual sanitary
latrines.
e) To report outbreak of epidemics.
f) To generate awareness in coordination with line
departments on rural sanitation.
g) To assist and coordinate emergency medical relief
services.
~ 103 ~
__________________________________________________________________________________
h) Maintenance and regulation of burial grounds.

24 Family Welfare a) To identify beneficiaries under national family
benefit scheme
b) To identify beneficiaries for National Maternity
Benefit Scheme.
c) To assist in organizing family planning and
immunization camps.
d) To organize IEC/family welfare promotional
campaigns.
e) To promote school health programmes.
f) To encourage institutional delivery to reduce
maternal / child mortality
25 Women and child a) To coordinate/assist in maintenance of ICDS and
development Anganwadi Centres.
b) Assisting in selection of sites for locating
Anganwadi centres
c) Awareness generation among women about their
rights.
d) To promote formation of all women Self Help
Groups.
e) To identify income generating activities for women.
f) Mobilising social support against social evils
discriminating women.
g) To identify pregnant women eligible for maternity
benefit scheme and to helping them in getting
benefits.
h) To assist in development of data base for women
and child development programmes.
i) To assist line departments in identification of
women beneficiaries for various women-centric
development programmes.
26 Social welfare, including a) To identify persons with disabilities in the village.
welfare of the b) To identify parents willing to adopt a child.
handicapped and c) To identify old aged persons in the village
mentally retarded d) To build awareness on ill effects of drug abuse.
e) To ensure community participation through
organizing regular meetings
f) To identify child labour working in hazardous
industries and other occupations
27 Welfare of the a) To identify beneficiaries for programmes/schemes
weaker sections, for the weaker sections of society through Gram
and in particular, Sabha.
of the Scheduled b) To promote equality and non-discrimination in all
Caste and the
aspects of life, including access to basic amenities,
Scheduled Tribes
services, and opportunities. This includes ensuring
that SCs and STs are not subjected to any form of
discrimination or abuse.
c) To protect the rights of SCs and STs, especially
those related to land and other property rights,
access to justice, and protection from exploitation.
~ 104 ~
__________________________________________________________________________________
28 Public distribution a) To identify beneficiaries for various schemes

system pertaining to public distribution through Gram
Sabha
b) To supervise prices of commodities.
c) To make Fair Price Shops (FPS) answerable to Gram
Sabha.
d) To assist in proper distribution of essential
commodities.
e) To assist in preparation of new ration card.
f) To facilitate selection of location for FPS and
dealers.
g) To assist in constituting vigilance committees
h) Inspection of FPS.
i) To report irregularities.
29 Maintenance of a) To prepare database of community assets to be
community assets maintained at the village level.
b) To explore various sources of funds for
maintenance of community assets.
c) To frame local guidelines not inconsistent with
State level guidelines/rules etc. for proper
maintenance of community assets.
Devolution of functionaries to Village Councils
5.53 Before delving into the issue of devolution of functionaries to Village

Councils, it is considered appropriate to understand the composition of the
Village Councils. According to the provisions in section 3(2) of the Lushai
Hills District (Village Councils) Act, 1953 as amended in 2014, a Village
Council comprises members according to the number of households within
the village as mentioned below:
a) For village not exceeding 200 households, there shall be 3 (three)

elected members, and one seat reserved for women.
b) For village with more than 200 households, but not exceeding 500
households, there shall be 5 (five) elected members, and one seat
reserved for women.
c) For village with more than 500 households, but not exceeding 1000
households,shall be 7 (seven) elected members, and two seats reserved
for women.
d) For village with more than 1000 households and above, there shall be
9 (nine) elected members, and three seats reserved for women.
5.54 The Executive body of a Village Council consists of a President, Vice

President, Secretary and a Treasurer. The executive functions of a Village
Council are vested upon the executive body. The Secretary is not an elected
member of the Village Council but appointed by the State Government on the
recommendation of the executive body. Besides the non-elected Secretary, a
Tlangau is also appointed by the Village Council who brings to public notice
~ 105 ~
__________________________________________________________________________________
the necessary orders, notifications and information from the Village Council.
The Secretary and the Tlangau are two non-elected functionaries of the
Village Councils whose tenure are largely co-terminus with the term of the
Village Council.
5.55 The functions of the Secretary are specifically mentioned in section 18 of the
Lushai Hills District (Village Councils) Act, 1953 which is re-produced as
follows:
“18. The Secretary shall be the Village writer and shall be responsible for the
duties as enumerated below:-
a) He shall record all the proceedings of the Village Council as well as the
Village Court and such record shall be signed by the President. He shall
publish all orders, notification and records as may be necessary and
such orders, notifications and record shall be signed by the President.
b) On receipt of any orders, notices, circular or letter from the State

Government or from the Deputy Commissioner and his Assistants for
service or for onward transmission to other villages, the Secretary shall
cause it to be served or transmitted to any other Village Council as may
be directed, and he shall be responsible to carry out such direction.
c) He shall keep all the books and records of the Village Council and of the
Village Court. He shall send all such books and records to the (State
Government) as may be required by it, with his own signature and of
the President.
d) All the books and records shall be kept ready to be examined at any
time by authorized officers of the State Government or any member of
the Village Council.
e) He shall keep all village statistical data within the Village Council
jurisdiction as may be prescribed by the State Government including
data on beneficiaries under various schemes selected from the village
and submit the report to the State Government as may be required.
f) He shall continue as Secretary of the Village Council if the Village

Council cannot perform its duties due to any reasons.”
5.56 The above provisions highlighted the significance of the role of the Secretary
which is, in fact, found to assume more and more importance in view of the
increasing workload of the village administration coupled with more and
more communications from the State Government and its subordinate
offices. The 1st State Finance Commission even went on to recommend that
a Secretary of the rank of Assistant Grade be posted to look after bigger
~ 106 ~
__________________________________________________________________________________
Village Councils of 301 households and more while Village Level Worker or
Village Level Assistants be posted in smaller villages or alternatively, the
Headmaster or the teacher of a local primary school may also be selected on
part time basis to discharge the function of a Secretary against a fixed
monthly honorarium. The Commission made such recommendations with a
view to make the Village Council administration more accountable and
responsive.
5.57 The Secretary of the Village Council is the village writer and serves as the
Village Council's backbone, providing much needed administrative support
to the Village Council's executive body. To improve the responsiveness of
Village Councils and the management of critical records at the village
level, as well as to strengthen village administration, we believe that a
capable and competent Secretary of the Village Council, also known as
the "village writer," is the bare minimum. We propose that one of the
essential qualifications for appointment as the Secretary of the Village
Council be a minimum educational qualification of at least a High
School Leaving Certificate. The necessary changes may be incorporated
into the relevant Village Council Acts.
Devolution of funds to Village Councils
5.58 Devolution of funds from the State Government to Village Councils on the
recommendation of the State Finance Commission is an important source of
revenue for Village Councils in Mizoram considering the persistently low
generation of own source revenues. Chart 5.1 below shows the devolution of
funds from the State Government to the Village Councils across the State vis-
à-vis the recommendation of the 1st State Finance Commission of Mizoram
Chart 5.1 Devolution of funds to Village Councils as per 1st SFC

recommendation
8000
7000
6000
7190.83
5000
₹ in lakh
6123.29
2098.22
1868.08
1694.47
4000
1623.03
1614.74
1225.17
1064.45
1410.1
3000
715.86
2000
1000
0
0
2015-16 2016-17 2017-18 2018-19 2019-20 2015-20
Projected devolution as per 1st SFC Actual devolution to VCs
Source: Local Administration Department and Report of 1st SFC of Mizoram
~ 107 ~
__________________________________________________________________________________
5.59 During the period under consideration i.e., 2015-16 to 2019-20, the State
Government devolved a sum of ₹6123.29 lakh against the projected amount
of ₹7190.83 lakh to Village Councils which is 85.15% of the amount
projected/recommended by the 1st SFC. The difference can largely be
attributed to the non-implementation of the 1st SFC recommendation during
the year 2015-16. Devolution from the State Government is essentially the
share of Village Councils from the net proceeds of taxes, duties, tolls and fees
leviable by the State Government i.e., the State’s Own Tax Revenue in line
with the provisions in section 3(1)(a)(i) of the Mizoram Finance Commission
Act, 2010 to enable the Village Councils to perform the functions assigned to
them. The devolved amount had been distributed on the basis of the criteria
recommended by the 1st SFC in two stages viz., first district wise and
subsequently village-wise within a district.
5.60 Central transfer to rural local bodies in the form of rural local body grants is
another important source of revenue for the Village Councils, more so in the
context of Mizoram. However, the 14th Finance Commission did not
recommend rural local body grants for the Village Councils in Mizoram,
including Village Councils under the 6th Schedule areas, citing that they could
not recommend grants to areas where Part IX (Panchayats) and Part IX-A
(Municipalities) do not apply. However, it urged the Union Government to
consider a larger, sustained and more effective direct intervention for the
upgradation of administration as well as development of these areas (i.e.,
Excluded Areas) covered under the proviso to article 275(1) of the
Constitution. Subsequent to the above suggestion, the Central Government in
Ministry of Finance allocated one-time grants amounting to ₹4544.00 lakh for
the excluded areas, which were realised in 2017-18. Further, a sum of
₹1624.00 lakhs for the Village Councils in excluded areas has been released
by the Union Government in the year 2019-20.
5.61 Devolution from the Union Government to Village Councils shot up from the
year 2020-21 with the start of implementation of the award period of the 15th
Finance Commission which recommended a substantial amount of rural local
body grants to Village Councils, even under the excluded areas where Part IX
(Panchayats) of the Constitution does not apply. The receipts of rural local
body grants for the year 2020-21 to 2021-22 along with projected figures till
the year 2025-26 from the 15th Finance Commission are depicted below in
Chart 5.2.
~ 108 ~
__________________________________________________________________________________
Chart 5.2 Rural local body grants to Village Councils from the 15th Finance
Commission
10,000.00 9,300.00
9,000.00
8,000.00 7,344.29 7600.00 7400.00
7100.00 7200.00
7,000.00
6,000.00
₹ in lakh
5,000.00
4,000.00
3,000.00
2,000.00
1,000.00
-
2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
Source: Local Administration Department and Report of 15th Finance Commission
5.62 Village Councils utilise a substantial portion of these local body grants for
implementation of works relating to water conservation and drinking water
supply, sanitation and solid waste management. Apart from these items, a
large proportion of these grants is utilised for development of internal roads
such as construction of PCC pavement, masonry steps, side drain, retaining
wall, slab culverts, etc.
Devolution of funds from Mahatma Gandhi National Rural Employment

Guarantee Scheme (MGNREGS)
5.63 Village Councils receive funds from certain Central/State schemes by serving
as an implementing agency for such schemes/programmes, in addition to the
devolution of funds from the Central and State Governments as recommended
by the Union Finance Commission and the State Finance Commission,
respectively. Village Councils may implement projects/works funded by the
Member of Parliament Local Area Development Scheme (MPLADS) and the
Member of Legislative Assembly Local Area Development Scheme (MLALADS)
in some cases.
5.64 A significant portion of funds flowing to Village Councils under this category
comes from the Centrally Sponsored Scheme of Mahatma Gandhi National
Rural Employment Guarantee Scheme (MGNREGS), which aims to provide at
least 100 days of guaranteed wage employment in a fiscal year to every rural
household whose adult members volunteer to do unskilled manual labour as
per demand, resulting in creation of productive assets of prescribed quality
and durability. The Gram Panchayats, established by the 73rd Constitution
Amendment Act of 1992, are the primary implementing agency for the
MGNREGS. In Mizoram, where there is no Panchayati Raj Institution,
paragraph 7.A of the Mizoram Mahatma Gandhi National Rural Employment
~ 109 ~
__________________________________________________________________________________
Guarantee Scheme, 2014 framed under section 4(1) of the Mahatma Gandhi
National Rural Employment Guarantee Act, 2005, vests the responsibility of
the Gram Panchayat for Scheme implementation to the Executive Body of the
Village Employment Council (VEC) in each village where the Scheme is
implemented. The Village Employment Council is made up of people who are
registered on the electoral rolls for a village that falls within the Village
Council's jurisdiction and is vested with carrying out the responsibility of the
Gram Sabha under MGNREGS.
5.65 The Village Council's President, Secretary, and Treasurer are ex-officio
Chairman, Secretary, and Treasurer of the VEC's Executive Body, while the
other elected members of the Village Councils are members of the Executive
Body. The positions of Vice-Chairman, Assistant Secretary, and Finance
Secretary in the VEC's Executive Body are chosen from among the members
of the Gram Sabha, or Village Employment Council. Although the Village
Council is not designated the implementing agency under the MGNREGS, the
Executive Body of the VEC (i.e., the implementing agency) is heavily
dominated by the Village Councils because all members of the VCs are part
and parcel of the Executive Body. In other words, in the context of Mizoram,
it can be assumed that the Village Council is the de facto implementing agency
under the Mahatma Gandhi National Rural Employment Guarantee Scheme.
5.66 Under the Scheme, the Central Government bears (a) 100 percent of unskilled
wage expenditure, (b) 75 percent of semi-skilled and skilled wage expenditure,
and (c) 75 percent of material cost, while the State Government bears (a) 25
percent of semi-skilled and skilled wage expenditure, and (b) 25 percent of
material cost. While the Act envisages wage to material ratio at 60:40 i.e., the
cost of material component of projects including the wages of the skilled and
semi-skilled workers taken up under the Scheme shall not exceed 40% of the
total project costs, the proportion of wage component (i.e., unskilled wages) is
significantly higher than the material component (i.e., semi-skilled and skilled
wages and material cost).
5.67 Given the preceding, it is thought worthwhile to comprehend the Scheme's

district-by-district devolution of funds to the implementing agency. In
practice, the VEC Executive Body is the implementing agency for 100 percent
of the works performed under the unskilled wage component in each village,
while workers' wages are directly credited to their bank accounts via an
electronic Fund Management System (e-FMS). In other words, the Executive
Body of the VEC is not required to physically distribute the wages of the
workers, nor are the wages parked in the Executive Body of the VEC's account.
As regards the execution of works under the material component, a decision
of the State Employment Guarantee Council vide its meeting dated
11.06.2014 allocated 20% of works to be executed under material component
(i.e., semi-skilled and skilled wages plus material cost) to the Executive Body
of the Village Employment Council which has subsequently been revised to
~ 110 ~
__________________________________________________________________________________
30% as per the decision of the State Employment Guarantee Council vide its
meeting dated 27.06.2017.
5.68 The district-wise expenditure on wages and material component under

MGNREGS from the years 2015-16 till 2022-23 as presented in the tables
below clearly shows that the Scheme is an important source of revenue for the
Village Councils, enabling them to achieve the twin objective of providing wage
employment to every rural household whose adult members volunteer to do
unskilled manual labour as also creation of productive assets for the village.
Although the Village Councils/Village Employment Councils can execute only
up to 30% of the works in material component, yet the unskilled wage
component forms a substantively greater source of revenue for the village. It
may be pertinent to mention that the share of a village from the expenditures
at the district level is determined by the demand for work as well as the
number of job card holders in a village who are willing to do unskilled manual
work.
Table 5.5A District-wise expenditure on wages and material component under

Mahatma Gandhi NREGS for the year 2015-16 and 2016-17
(₹ in lakh)
2015-16 2016-17
Semi- Semi-
Sl. skilled skilled
District Unskilled Material Unskilled Material
No. and and
wages cost wages cost
skilled skilled
wages wages
1 2 3 4 5 6 7 8
1 LAWNGTLAI 3678.68 40.63 564.87 1805.06 0.91 240.34
2 SAIHA 1852.63 21.27 271.75 1009.29 8.75 103.54
3 CHAMPHAI 3734.64 144.57 594.05 1967.39 33.45 193.54
4 LUNGLEI 4479.16 148.19 426.63 2171.40 14.60 188.71
5 AIZAWL 3522.25 226.55 284.73 1860.44 76.35 125.64
6 KOLASIB 2483.10 33.40 430.54 1289.38 2.06 177.13
7 MAMIT 2687.07 146.05 221.58 1412.67 36.60 112.35
8 SERCHHIP 1886.59 56.49 227.65 1028.67 20.91 110.50
TOTAL 24324.12 817.15 3021.80 12544.30 193.63 1251.75
Source: https://nrega.nic.in accessed on 07.02.2023
~ 111 ~
__________________________________________________________________________________
Table 5.5B District-wise expenditure on wages and material component under

(₹ in lakh)
2017-18 2018-19
Semi- Semi-
Sl. skilled skilled
No. and and
skilled skilled
wages wages
1 2 3 4 5 6 7 8
1 LAWNGTLAI 2637.66 1.91 364.84 7777.91 13.38 370.44
2 SAIHA 1295.84 12.99 183.40 3112.90 49.35 165.93
3 CHAMPHAI 2585.92 63.93 303.07 6703.83 24.34 362.09
4 LUNGLEI 3200.43 104.83 342.65 8314.82 122.30 335.40
5 AIZAWL 2336.51 69.59 296.87 7177.42 85.12 321.64
6 KOLASIB 1772.98 18.43 285.25 4028.23 58.08 209.49
7 MAMIT 2005.30 60.99 177.95 4471.10 65.29 267.27
8 SERCHHIP 1327.48 56.86 153.28 3054.07 55.91 161.69
TOTAL 17162.12 389.53 2107.31 44640.28 473.77 2193.95
Table 5.5C District-wise expenditure on wages and material component under

(₹ in lakh)
2019-20 2020-21
Semi- Semi-
Sl. skilled skilled
No. and and
skilled skilled
wages wages
1 2 3 4 5 6 7 8
1 LAWNGTLAI 6657.25 109.63 1140.05 7410.12 105.57 761.29
2 SAIHA 3291.55 135.85 612.15 3704.36 124.57 457.35
3 CHAMPHAI 6389.64 239.48 981.51 3846.10 144.95 549.39
4 LUNGLEI 8115.83 305.67 1143.73 7079.94 263.68 676.51
5 AIZAWL 5668.13 202.02 1036.92 4516.60 194.11 682.32
6 HNAHTHIAL 0.00 0.00 0.00 1502.59 36.94 127.13
7 KHAWZAWL 0.00 0.00 0.00 1900.08 79.53 310.42
8 KOLASIB 3967.70 147.20 759.77 4355.62 124.98 565.48
9 MAMIT 4349.84 134.60 688.39 4802.04 125.21 574.32
10 SAITUAL 0.00 0.00 0.00 2588.81 83.10 354.36
11 SERCHHIP 3010.66 71.56 711.29 3373.21 98.40 750.20
TOTAL 41450.60 1346.01 7073.81 45079.47 1381.04 5808.77
~ 112 ~
__________________________________________________________________________________
Table 5.5D District-wise expenditure on wages and material component under

(₹ in lakh)
2021-22 2022-23
Semi- Semi-
Sl. skilled skilled
No. and and
skilled skilled
wages wages
1 2 3 4 5 6 7 8
1 LAWNGTLAI 7898.31 89.96 435.17 6535.77 110.83 513.28
2 SAIHA 3755.21 43.01 322.92 3442.63 110.69 742.24
3 CHAMPHAI 3927.94 106.96 560.39 3014.90 25.54 241.06
4 LUNGLEI 7045.13 166.40 404.31 5698.37 105.49 671.09
5 AIZAWL 4567.18 103.13 385.49 3280.87 82.17 1000.56
6 HNAHTHIAL 1539.51 52.90 360.06 1249.94 54.41 315.60
7 KHAWZAWL 1974.81 50.41 620.03 1380.68 13.99 236.69
8 KOLASIB 4437.24 86.46 441.73 3674.15 88.97 332.74
9 MAMIT 4913.14 86.72 324.62 3961.85 83.05 777.24
10 SAITUAL 2748.07 108.50 348.64 2197.11 93.13 513.57
11 SERCHHIP 3456.89 38.49 470.02 2820.93 61.99 313.61
TOTAL 46263.43 932.94 4673.38 37257.20 830.26 5657.68
Table 5.6A Comparison of funds from State Finance Commission, Excluded

Area Grants and MGNREGS
(₹ in lakh)
Excluded area Share of VEC's

Unskilled
Devolutions grants from in Material
Year wages of
from 1st SFC Central Component of
MGNREGS
Government MGNREGS*
2015-16 0 24324.12 767.79
2016-17 1092.89 12544.30 289.076
2017-18 1861.01 4544.00 17162.12 749.05
2018-19 2154.04 44640.28 800.32
2019-20 2632.46 1624.00 41450.60 2525.95
Total 7740.40 6168.00 140121.42 5132.18
Share in % 4.86 3.88 88.04 3.22

*Share of Executive Body of VEC in the execution of works under Material Component of
MGNREGS is roughly calculated at 20% since 11.06.2014 and thereafter to 30% since
27.06.2017.
~ 113 ~
__________________________________________________________________________________
5.69 The flow of funds to the VEC/VC based on the demand-driven Centrally
Sponsored Scheme of the Mahatma Gandhi National Rural Employment
Guarantee Scheme demonstrates the importance of the MGNREGS as a
source of revenue for the creation of community assets. During the 1 st SFC
period, i.e., 2015-16 to 2019-20, the share of unskilled wages of MGNREGS
stands at a whopping 88.04 percent of the combined expenditure from 1st SFC
devolutions, excluded area grants from the Central Government and the
MGNREGS, while devolutions from the 1st SFC account for 4.86 percent.
Table 5.6B Comparison of funds from Grants-in-aid from State Government,

Rural Local Body Grants and MGNREGS
(₹ in lakh)
Share of VEC's
Grants-in-aid Rural local Unskilled
in Material
Year from State body grants wages of
Component of
Government from 15th FC MGNREGS
MGNREGS*
2020-21 815.44 9300.00 45079.47 2156.94
2021-22 2134.92 6900.00 46263.43 1681.9
2022-23 2134.92 7100.00 37257.2 1946.38
Total 5085.28 23300.00 128600.1 5785.22
Share in % 3.12 14.31 79.01 3.55

**Share of Executive Body of VEC in the execution of works under Material Component of
MGNREGS is roughly calculated at 30%.
5.70 During the three years of the 15th Finance Commission regime, i.e., 2020-21
to 2022-23, the share of unskilled wages of MGNREGS stands at a high 79.01
percent of the combined expenditure from grants-in-aid from State
Government, rural local body grants as recommended by the 15th FC and the
MGNREGS. Grants from the 15th FC occupy a comparatively high percentage
of 14.31 percent while grants-in-aid from the State Government dip to 3.12
percent.
Profile of Urban Local Bodies
5.71 In the State of Mizoram, there are essentially two urban local bodies: Aizawl
Municipal Corporation and the newly established Lunglei Municipal Council.
According to Census 2011 population totals, the population of Aizawl
municipality is 2,93,416, accounting for 83.73 percent of the total municipal
population in Mizoram. In other words, the city of Aizawl is home to more than
four-fifths of the entire municipal population. Its geographical coverage is also
120.40 square kilometres, which equates to 68.54 percent of the entire
municipal area in the State. Lunglei Municipal Council, on the other hand,
covers an area of 55.27 square kilometres, or 31.36 percent of the total
municipal area. The newly established Lunglei Municipal Council is home to
16.27 percent of the entire municipal population and accounts for 23.75
~ 114 ~
__________________________________________________________________________________
percent, or nearly one-fourth of Mizoram's total municipal households. Table

5.7 below presents a brief profile of the urban local bodies in Mizoram.
Table 5.7 Profile of Urban Local Bodies in Mizoram
No. of Population Households Area

Sl. Name of Urban No. of
Local (Census (Census (in sq.
No. Local Body Wards
Councils 2011) 2011) km)
Aizawl Municipal
1 19 83 2,93,416 60,635 120.40
Corporation
Lunglei Municipal
2 11 24 57,011 11,591 55.27
Council
TOTAL 30 107 3,50,427 72,226 175.67
Source: UD&PA Department, MIRSAC and https://censusindia.gov.in
5.72 The Aizawl Municipal Corporation (AMC) was established on the 1st July, 2008
as the State's sole municipal council under the Mizoram Municipalities Act,
2007, as amended. The Aizawl Municipal Corporation was upgraded to the
status of a Corporation on the 15th October, 2015 after the city's population
exceeded the 3 lakh threshold set by the Municipality Act 2007.
5.73 The State Government has established a three-tier system of urban

administration, which includes the Municipal Body, which is made up of
elected councillors, the Ward Committee, which is led by the concerned
Councillor, and the Local Council, which is made up of the elected
representatives of the people for each locality. The list of wards as well as the
names of Local Councils within the wards are shown in table 5.8 (Aizawl
Municipal Corporation) and table 5.9 (Lunglei Municipal Council). The
Corporation at Aizawl is made up of 31 Councillors, 19 elected, six women
from reserved Wards, and 12 nominated by the State Government, who are
made up of 11 MLAs from Assembly Constituencies within Aizawl city and one
MP from the State. The recently constituted Lunglei Municipal Council has 11
elected Councillors including 4 seats reserved for women.
5.74 The Mayor presides over the Board of Councillors (BOC), which is made up of
31 Councillors. Nominated Councillors may attend BOC meetings but cannot
vote. The Corporation's governing body and highest decision-making body is
the Board of Councillors. Its primary function is to create laws and policies
for the administration of Aizawl City. The Executive Committee of the AMC
comprises the Mayor and Deputy Mayor, who are elected by the Councillors,
as well as four other Executive Councillors. In the case of Lunglei
municipality, the Executive Committee comprises the Chairman and Vice-
Chairman, duly elected by the Councillors, as well as two other Executive
Councillors.
~ 115 ~
__________________________________________________________________________________
Table 5.8 List of Wards in Aizawl Municipal Corporation and their population
locality wise
Name of Local Population of the Number of
Name of
Council within the locality (Census households Remarks
Wards
Ward 2011) Remarks
Selesih 882 120
Durtlang North 1756 282
Durtlang 4019 655
I Durtlang Leitan 4598 751
Zuangtui 3912 487
Muanna Veng 2023 197
Leitan Ramthar*
Chaltlang 12632 1626
II Bawngkawn 8407 1350
Bawngkawn South 2237 445
Ramhlun North 6428 1072
Ramhlun Venglai 3073 568
Ramhlun Vengthar 3006 460
III
Ramhlun Sport
1013 223
Complex
Laipuitlang 1979 306
Ramhlun South 6424 1117
Ramthar North 1928 333
IV
Ramthar Veng 5258 807
Aizawl Venglai 2505 427
Electric Veng 6165 911
V Chanmari 5626 913
Zarkawt 2620 291
Chanmari West 6302 894
VI Edenthar 2845 383
Hunthar 2680 450
Zemabawk 9983 1452
Zemabawk North 3119 550
VII Falkland 1342 127
Thuampui 4021 673
Zemabawk South*
Armed Veng 4083 787
VIII Armed Veng South 4847 944
Chite 497 85
Dawrpui 3660 530
Saron Veng 3030 396
IX
Chhinga Veng 7629 1098
Tuithiang 2133 359
X Chawnpui 3965 648
~ 116 ~
__________________________________________________________________________________
Zotlang 3018 451

Zonuam 2647 419
Re-named as
Govt. Complex 1913 306
Ainawn Veng
Luangmual 5466 796
Chawlhhmun 3092 510
XI Tanhril 2930 518
Sakawrtuichhun 1425 263
Rangvamual 1342 242
Tuikual North 4702 830
XII Tuikual South 5768 822
Dinthar 6685 1245
Dawrpui Vengthar 4095 615
XIII Vaivakawn 3996 691
Kanan 3572 518
Khatla 7248 1214
XIV Khatla South 3727 560
Mission Vengthlang 4876 800
Bungkawn 4955 885
Bungkawn Vengthar 2346 338
XV Maubawk 4120 653
Lawipui 760 111
Nursery 2734 335
Bethlehem 4846 810
Bethlehem
XVI 7467 1129
Vengthlang
College Veng 2904 545
Venghlui 4744 739
Republic Veng 4159 771
XVII
Upper Republic 2644 486
Republic Vengthlang 2412 432
Mission Veng 8596 1500
Salem Veng 4134 719
Dam Veng 1345 245
XVIII
Venghnuai 2092 422
Thakthing 1297 212
ITI Veng 4440 861
Kulikawn 4978 686
Tlangnuam 4008 700
XIX Saikhamakawn 1463 288
Melthum 1110 209
Hlimen 2733 501
TOTAL 2,93,416 47,094
Source: UD&PA Department/ * new Local Councils established after Census 2011
~ 117 ~
__________________________________________________________________________________
Table 5.9 List of Wards in Lunglei Municipal Council and their population
locality wise
Population of the
Name of Name of Local Councils Number of
locality (Census
Wards within the ward Households
2011)
Pukpui 2958 478
I
Zotlang 2891 547
Serkawn 2762 532
II
Zohnuai 1520 324
Bazar Veng 4622 1320
III
College Veng 1228 315
Venglai 3237 1568
IV
Venghlun 1988 492
Rahsiveng 3759 962
V Sazaikawn 551 110
Hauruang 1159 301
VI Electric Veng 4505 1225
VII Chanmari 5391 1382
Ramthar 3604 1003
VIII
Farm Veng 1837 459
Lunglawn 4108 783
IX
Salem Veng 1669 394
Sethlun 880 336
Luangmual 1865 450
X
Theiriat 1988 507
Hrangchalkawn 723 247
Lungpuizawl 600 170
XI Zobawk 'S' 447
3166
Zobawk 'N' 319
TOTAL 57,011 14,671
Source: UD&PA Department
Devolution of functions to Municipalities
5.75 Article 243W of the Constitution states that the State Legislature may, by law,
endow the Municipalities with such powers and authority as may be necessary
to enable them to function as institutions of self-government and such law
may contain provisions for the devolution of powers and responsibilities upon
Municipalities, subject to such conditions as may be specified therein, with
respect to –
(i) the preparation of plans for economic development and social
justice;
~ 118 ~
__________________________________________________________________________________
(ii) the performance of functions and the implementation of schemes

as may be entrusted to them including those in relation to the
matters listed in the Twelfth Schedule;
5.76 The cherished goal of decentralised governance as exemplified in article 243W

of the Constitution is to create institutions of self-government at the local level
with the mandate to prepare plans for economic development and social
justice, performing various functions as enumerated under the Twelfth
Schedule. Accordingly, section 57 of the Mizoram Municipalities Act, 2007 as
amended outlines the functions of a Municipality including all the eighteen
functions listed under the 12th Schedule of the Constitution.
5.77 The functions of a Municipality, though explicitly written in the Act, are
transferred by the State Government, through separate notifications, to the
Municipalities from time to time by invoking the provisions in sections 57, 59
and 387(2) of the Mizoram Municipalities Act, 2007 as amended. The
functions transferred to the two Municipalities in Mizoram are enumerated as
shown below:
Table 5.10 Transfer of functions to the Municipalities in Mizoram
Total
Whether the Whether the
Sl. Functions in the Expenditure on
function has function has
No. 12th Schedule and the
been been
Sec. 57 of the function/service
transferred to transferred
Mizoram in the year
Aizawl to Lunglei
Municipalities Act, 2020-21
Municipal Municipal
2007 as amended (₹ in lakhs)
Corporation Council
[Yes/No] [Yes/No]
1 2 3 4 5
1 Urban planning Yes, vide 7.61 Yes, vide
including town notification notification
planning. No.B.11030/56/2 No.B.13017/40/
011-UD&PA dt. 2022-
27.08.2013 UD&PA(LMC) dt.
2 Regulation of Yes, vide 0.00 08.12.2022
land-use and notification
construction of No.B.13017/29/2
buildings. 009-UD&PA dt.
19.09.2011
3 Planning for Yes, vide 0.00
economic and notification
social No.B.11030/56/2
development. 011-UD&PA dt.
27.08.2013
4 Roads and bridges. No (The function is 0.00 No (The function
currently is currently
implemented by implemented by
Public Works Public Works
Department) Department)
5 Water supply for No (The function is 0.00 No (The function
domestic, currently is currently
~ 119 ~
__________________________________________________________________________________
industrial and implemented by implemented by

commercial Public Health Public Health
purposes. Engineering Engineering
Department) Department)
6 Public health, Yes, vide 716.94 Yes, vide
sanitation notifications notification
conservancy and No.B.13017/40/2 No.B.13017/40/
solid waste 011-UD&PA(M) dt. 2022-
management. 20.09.2011 and UD&PA(LMC) dt.
No.B.13017/40/2 08.12.2022
015-UD&PA(M) dt.
08.06.2016
7 Fire services. No (The function is 0.00 No (The function
currently is currently
implemented by implemented by
Fire & Emergency Fire &
Services under Emergency
Home Department) Services under
Home
Department)
8 Urban forestry, Yes, vide 0.00 Yes, vide
protection of the notification notification
environment and No.B.13017/40/2 No.B.13017/40/
promotion of 015-UD&PA(M) dt. 2022-
ecological aspects. 08.06.2016 UD&PA(LMC) dt.
9 Safeguarding the 0.00 08.12.2022
interests of weaker
sections of society,
including the
handicapped and
mentally retarded.
10 Slum Yes, vide 3,516.07
improvement notification
and No.B.11030/56/2
upgradation. 011-UD&PA dt.
11 Urban poverty 27.08.2013 0.00
alleviation.
12 Provision of urban Yes, vide 283.68
amenities and notification
facilities such as No.B.13017/40/2
parks, gardens, 015-UD&PA(M) dt.
playgrounds. 08.06.2016
13 Promotion of 0.00
cultural,
educational and
aesthetic aspects.
14 Burials and burial Yes, vide 0.00
grounds; notifications
cremations, No.B.13017/40/2
cremation grounds; 011-UD&PA(M) dt.
and electric 20.09.2011
crematoriums.
15 Cattle pounds; Yes, vide 0.00
prevention of notification
cruelty to animals. No.B.13017/40/2
16 Vital statistics 015-UD&PA(M) dt. 0.00
including 08.06.2016
~ 120 ~
__________________________________________________________________________________
registration of births
and deaths.
17 Public amenities Yes, vide 517.11
including street notification
lighting, parking No.B.13015/2/20
lots, bus stops and 08-LAD dt.
public 29.01.2013 for
conveniences. transfer of street
lighting, and
departmental
agreement
between UD&PA
and Transport
departments duly
signed on 1st May,
2012 for transfer
of parking lots and
collection of
parking fees
18 Regulation of Yes, vide 0.00
slaughter houses notification
and tanneries. No.B.13017/40/2
015-UD&PA(M) dt.
08.06.2016
Source: UD&PA Department and AMC
5.78 On a deeper examination of the extent of implementation of the transferred

functions by the Aizawl Municipal Corporation, it has been observed that even
though the function of “regulation of land-use” has been transferred to the
Municipality, the subject matter of land administration continues to be
implemented by the Land Revenue & Settlement Department of the State
Government even within the territorial limits of the municipal area. The AMC
is hardly involved on the subjects of “urban planning” as also “planning for
economic and social development”. The subject matter of “urban forestry”
though transferred to the Municipality in writing is practically in the hands of
the Environment, Forest and Climate Change Department.
5.79 On the function of “public health”, implementation of the subject matter within
the municipal area is still in the hands of the Health & Family Welfare
Department. In fact, the Corporation highlighted that proposals for filling up
of one post of Medical Officer under the Health & Sanitation Wing in the
Mizoram Municipal Common Cadre Service Rules, 2019 on deputation basis
have been regretted on three occasions by the State Government in Health &
Family Welfare Department. Deployment of officers and staff from the State
Government by means of deputation to the Municipality along with
proportionate increase in the budgetary allocation to meet their salary
expenditure is considered essential to enable the Municipalities to deliver their
mandate.
5.80 On the function of “sanitation”, the Municipality asserts that Swatch Bharat
Mission-Urban, a Centrally Sponsored Scheme relating to sanitation & solid
~ 121 ~
__________________________________________________________________________________
waste management is executed by the UD&PA Department with minimal

involvement of the Municipality while the State Government affirms that a
substantial amount under the Scheme has been transferred to the AMC under
various components of the Scheme as below:
Sl.
Component Year Amount released
No.
Community toilet/public toilet
1. 2019-20 ₹34,84,400.00
(40 units)
Information, Education, Communication and
2. 2017-18 ₹33,40,000.00
Public Awareness
3. 2018-19 ₹24,00,000.00
Public Awareness
4. 2019-20 ₹50,00,000.00
Public Awareness
5. Capacity building 2019-20 ₹2,50,000.00
6. 2020-21 ₹5,60,750.00
Public Awareness
TOTAL ₹1,50,35,150.00
5.81 Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-

NULM) is a Centrally Sponsored Scheme with the goal of reducing poverty and
vulnerability of urban poor households by enabling them to access gainful self-
employment and skilled wage employment opportunities, resulting in an
appreciable improvement in their livelihoods on a sustainable basis, by
strengthening grassroots level poor institutions. It also aims to provide urban
homeless people with shelter and essential services in a phased manner.
Furthermore, the DAY-NULM seeks to address urban street vendors' livelihood
concerns by facilitating access to suitable spaces, institutional credit and skills
to urban street vendors for accessing emerging market opportunities. With the
subject matter of “urban poverty alleviation” in the hands of the Municipality,
it is only considered appropriate that implementation of the DAY-NULM within
the municipal area be with the AMC. However, the role of the AMC in
implementation of the Scheme appears to be rather limited.
5.82 In this context, the State Government in Urban Development & Poverty
Alleviation Department highlighted that the component of “Support to Urban
Street Vendors” (SUSV) under DAY-NULM has been entrusted to AMC since
inception of the Scheme. Further, the new PM Flagship programme PM
SVANidhi is also implemented by the AMC itself. However, transfer of other
components under DAY-NULM is not contemplated by the Department owing
to the slow performance of the Corporation in the SUSV component. In
addition, transfer of the Aizawl City Mission Management Unit under DAY-
NULM to the AMC was mooted towards the end of 2021 but the same has been
put on hold since the extended period of the Scheme will be over by
September, 2022 only.
~ 122 ~
__________________________________________________________________________________
5.83 With respect to the implementation of other Centrally Sponsored Scheme for
tackling urban poverty viz. Pradhan Mantri Awaas Yojana – Housing for All
(Urban) (PMAY-HFA), the Scheme was implemented by the AMC during the
year 2017 by inviting applications as per the Scheme guidelines but the same
was transferred back to the Directorate of UD&PA apparently due to shortage
of staff in the Corporation to undertake field verification of the applications.
In addition, the funding pattern of PMAY-HFA includes ULB share apart from
the Central, State and beneficiary share, which apparently is another reason
why the scheme cannot be taken up by the AMC.
5.84 The Municipality already manages street lighting, but the AMC claims it lacks
the capacity and management authority to perform routine maintenance
without the approval of the Power and Electricity Department. AMC pays the
department's bills for energy charges and streetlight maintenance charges
within the municipal area. It may be in the best interests of the situation if an
Assistant Engineer (Electrical) and supporting technical staff from the P&E
Department are deployed on deputation to the AMC to ensure that the
Municipality performs the function as mandated by the Act.
5.85 On the subject matter of “regulation of slaughter houses and tanneries”, the
AMC avers that neither the technical personnel for management of slaughter
houses are available with the Municipality nor funds for management of such
slaughter houses transferred to the Municipality from the budget of the
Department of Animal Husbandry & Veterinary Department which currently
handles the matter. The four posts of Urban Animal Husbandry & Veterinary
Officer, to be filled up by means of deputation, under the Health and Sanitation
Wing of the Mizoram Municipal Common Cadre Service cannot be filled up till
date.
5.86 A cursory examination of Table 5.10 reveals that three of the eighteen
functions listed in the Twelfth Schedule, as well as section 57 of the Mizoram
Municipalities Act, 2007, as amended, namely, roads and bridges; water
supply for domestic, industrial, and commercial purposes; and fire services,
continue to be with the State Government, with implementation of the
functions currently undertaken by the concerned State Government
departments. The functions of the municipality, as enshrined in Section 57 of
the Act, are the functions that are generally performed in varying degrees by
urban local bodies (viz., Municipal Corporations, Municipal Councils,
Municipal Boards, and so on) across the country. The extent to which the
aforementioned functions are carried out cannot be the same due to
differences in municipal staff capacity, available resources, and municipal
priorities. However, the Commission believes that in order to achieve the
Constitutional goal of transforming Municipalities into institutions of
self-government at the local level with the mandate to prepare plans for
economic development and social justice, the eighteen functions of
Municipality as provided in Section 57 of the Mizoram Municipalities Act,
~ 123 ~
__________________________________________________________________________________
2007 as amended in line with the functions listed in the Twelfth Schedule
of the Constitution be progressively transferred to the Municipalities in
letter and spirit within the next two to three years, inclusive of all
institutions, schemes, buildings, other properties, assets and liabilities
connected with the matters. Following such transfer, the State
Government may allot to the Municipality such funds and personnel as
are required to enable the Municipality to discharge the functions and
duties transferred in accordance with the provisions of sub-section (1) of
section 59 of the Mizoram Municipalities Act, 2007, as amended. To be
more specific, the funds previously allocated to the State Government
Departments for the execution of the transferred functions be
proportionately reduced, while grants-in-aid to the Municipalities are
proportionately increased, and the officials in the State Government
handling such functions are posted either on deputation or attached to
the Municipalities to ensure seamless delivery of civic services.
5.87 In order to work out the modalities for transfer of functions including
funds and functionaries to the Municipalities, a Committee headed by the
Secretary in the Department of Urban Development & Poverty Alleviation
with representatives from the (a) department(s) whose services are to be
transferred to the Municipalities, (b) Finance Department, and (c)
Department of Personnel & Administrative Reforms be constituted by the
State Government.
5.88 It may also be noted that there are certain overlapping functions in the
distribution of subjects between the Union, State and the Municipalities in the
7th Schedule and the 12th Schedule of the Constitution. For instance, the
subjects of (a) public health and sanitation, (b) burials and burial grounds;
cremations and cremation grounds, (c) pounds and the prevention of cattle
trespass, (d) water, that is to say, water supplies, etc. find mention in both the
List II-State List under the 7th Schedule and the 12th Schedule. The list of
subjects in the 12th Schedule and the eighteen functions as specified in section
57 of the Mizoram Municipalities Act, 2007 as amended hardly have
operational significance unless they are broken up into activities and the
functional domain of the Municipalities clearly specified to ensure role clarity
between the State Government and the Municipalities, which is also an elected
government at its own level. The State of Kerala has clearly specified the
functions of the Municipalities by breaking up the functions into activities and
incorporate the same in the Schedule-I of the Kerala Municipalities Act, 1994
as amended, containing mandatory functions, general functions and sector-
wise distribution of functions across sectors such as housing, public works,
electricity and energy, education, sanitation and public health, eradication of
poverty, development of the Scheduled Caste and Scheduled Tribes, co-
operation, etc. With a view to ensure progressive devolution of functions
in letter and spirit upon the Municipalities, the Commission
recommends that the functions of the Municipalities as specified in
~ 124 ~
__________________________________________________________________________________
section 57 of the Mizoram Municipalities Act, 2007 as amended be

broken up into activities and the functional domain of the Municipalities
be clearly specified to prevent overlapping of functions between the State
Government and the third tier of Government. The Committee as
recommended in paragraph 5.87 may also undertake the task of activity
mapping/functional assignment of subjects to Municipalities.
5.89 In fact, during the Commission's visit to the AMC on 22nd July, 2022, the
Mayor confirmed that the subject of "fire services" within the municipal area
can be duly implemented by the Corporation if existing Mizoram Fire Services
officers and staff, as well as their physical assets, are transferred to the AMC
along with corresponding funds. The AMC also claims that the subject of
"water supply" can be implemented by the Corporation if a certain level of
officers and staff, as well as the necessary funds, are transferred from the
Public Health Engineering Department to the AMC, provided that technical
matters remain with the State Government in the Public Health Engineering
Department while the supply of water and the corresponding collection of user
charges are handled by the AMC.
Devolution of functions to Ward Committees
5.90 The Municipality constitutes Ward Committees in each Ward in accordance

with the provisions of sub-section (1) of section 23 of the Mizoram
Municipalities Act, 2007, as amended, read with rules 3 and 4 of the Mizoram
Municipalities (Ward Committee and Local Council) Rules, 2010. The elected
Councillor happens to be the Chairman of the Ward Committee with two
members each from the Local Councils within the Ward and three other
Members who are appointed by the Municipality on the recommendation of
the Councillor concerned from amongst the prominent citizens residing in the
Ward of which one shall be a woman.
5.91 The functions of the Ward Committee under the Municipality are specifically
prescribed in rules 10, 11, and 12 of the Mizoram Municipalities (Ward
Committee and Local Council) Rules, 2010. Ward Committees are responsible
for making local and internal arrangements and activities within the Ward for
the provision of common civic services and community benefits, as well as
other matters such as social harmony.
5.92 Subject to general supervision of the Municipality, the Ward Committee is

mandated to supervise and monitor:
a) detection of violation of various provisions of the Act such as illegal

construction, encroachments on municipal and public properties,
public nuisance, evasion of taxes, unlicensed activities, and the like;
b) arresting wasteful uses of various municipal services like tap water,
street hydrant, street light, parks and playgrounds, community centre,
and the like;
~ 125 ~
__________________________________________________________________________________
c) detection of unclean premises and accumulated garbage, with powers

to require the owner or the occupier of such premises to clean and to
dispose of such garbage;
d) helping health immunization services;
e) maintaining essential statistics, and
f) numbering of streets and premises.
5.93 The Committee is also tasked with supervising the implementation of

Municipality decisions pertaining to the Ward, and it may perform any other
functions entrusted to it by the Municipality from time to time. In addition,
the Ward Committee is also assigned a special role with regard to planning.
In this context, the Committee is also authorised to –
a) identify problems of the Ward;

b) fix priority of problems so identified, and
c) prepare a list of developmental schemes consisting of such identified
problems and submit the same to the Municipality.
5.94 The Ward Committee is expected further to identify any uncompleted work or
works of poor quality or materials of inferior quality used for any work within
the Ward and report such matter to the authority concerned for an appropriate
action.
5.95 The Ward Committees are statutory in nature which highlights the very
significance attached by the Act for managing the internal affairs of the Ward
towards delivery of basic civic services and matters of common interest for the
community. According to rule 7(1) of the Mizoram Municipalities (Ward
Committee and Local Council) Rules, 2010, it must meet at least once every
three months. It has been observed that Ward Committee meetings are rather
infrequent in nature, which defeats the purpose of forming such a Committee.
Functions performed by the Aizawl Municipal Corporation
5.96 On the basis of the functions devolved upon the Municipality from time to
time, the core services delivered by the Aizawl Municipal Corporation may be
summarised as follows:
5.97 Solid Waste Management: Municipal solid waste is collected at designated

locations in each Local Council and dumped at the Solid Waste Management
Centre at Tuirial, about 20 kilometres from the city centre. Municipal solid
waste collection and disposal is delegated to the 83 Local Councils within their
respective jurisdictions. The expenditure is shared by the AMC and the Local
Council in an 80:20 ratio, which was recently revised by the Board of
Councillors to a 60:40 ratio between the AMC and the Local Councils, effective
from 1st April, 2022. The fixed rates and actual user charge collection vary by
locality. The municipal solid waste segregated per capita per day is
~ 126 ~
__________________________________________________________________________________
approximately 0.476 kg, of which approximately 62.85 tonnes (38 percent) is

bio-degradable, 64.50 tonnes (39 percent) is recyclable (mostly plastic, metal,
and paper products), and the remaining 38.04 tonnes (23 percent) is inert
waste and debris.
5.98 Enforcement of Building Regulations: The Aizawl Municipal Council

Building Regulations, 2012 cover all areas under the AMC's territorial
jurisdiction. These regulations came into effect on the 20th December, 2012,
and require prior permission for the construction of any type of building within
the municipal area. Since June 2018, the Online Building Plan Approval
System (OBPAS) has made it easier to obtain the necessary building plan
approvals. Since the implementation of the Building Regulations, the AMC has
granted over 15,000 building permits.
5.99 To prevent disasters and mishaps caused by landslides arising from

uncontrolled excavations, the AMC Site Development and Slope Modification
Regulations, 2017 also came into force from the 29th October, 2021.
5.100 Licensing Regulations: The Corporation has been issuing Licenses to

regulate business activities within the municipal area as per the provisions of
the Aizawl Municipal Council Licensing Regulations, 2012. Any person
carrying on any trade, profession or calling as specified in the Regulations
within Aizawl City are mandated to obtain a license for such trade, profession
or calling from the Aizawl Municipal Corporation. More than 10972 Licenses
have been issued under these Regulations till the middle of the year 2022.
5.101 Assessment and collection of Property Tax: Since June 2015, the Aizawl
Municipal Corporation has implemented the Mizoram Municipalities (Property
Tax Management) Rules, 2014 to assess and collect property taxes. Property
tax becomes the Municipality's primary source of tax revenue. Eighty percent
of the total revenue collected from property taxes has been devolved to the
Local Councils via the respective Ward Committee as the Councillor Ward
Development Fund. Perhaps, AMC is the only Municipal Corporation in the
North Eastern States that has adopted the Unit Area Method (UAM) of property
taxation, for which the Ministry of Housing & Urban Affairs, Government of
India, has also expressed its gratitude to the State Government.
5.102 Collection of vehicle parking fees: The service has been managed through
the hiring of contractors for the 51 designated parking areas within the
municipality of Aizawl. These contractors are chosen through open tender on
a quoted reserved price for a specific area for a year at a time.
5.103 Street Vending: The Aizawl Municipal Corporation has been designated as
Local Authority for street vendors by the State Government vide Order No. B.
13017/40/2010-UD&PA/Loose-I dt. 11.05.2012. The Town Vending
Committee has been established under the supervision of the Municipal
~ 127 ~
__________________________________________________________________________________
Commissioner to make recommendations for the enforcement of the Street

Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014.
Registration of vendors, marking of vending zone and setting of their
respective timing is under active consideration of the Municipality.
5.104 Aizawl Master Plan Vision 2030: The Aizawl Master Plan Vision-2030
addresses environmental concerns, transit and transportation plan, housing
plan, etc. and developmental controls. The Master Plan is a policy framework
for development works and land-use planning in the municipality.
Consequently, all infrastructure development works within the area need to
conform to the Master Plan and all Government Department/Agencies also
execute their respective projects as per the provisions proposed in the Master
Plan.
5.105 Plastic Waste Management: Plastic waste management has been prioritised
by the AMC since early 2019, and the Aizawl Municipal Corporation Plastic
Waste Management Bye-Laws, 2019 came into force on the 1st August, 2019.
Rag pickers separate plastic waste at the Solid Waste Management Centre at
Tuirial. They sell whatever they could to licenced scrap dealers. The waste is
then sold to factories by scrap dealers. AMC receives royalties from scrap
dealers. The AMC is working to establish a Plastic Waste Processing Center at
Luangmual. Site development for the same is currently underway.
5.106 The AMC has now banned Single Use Plastics (SUPs) with a thickness of less
than 75 microns as per the provisions of the Plastic Waste Management
(Amendment) Rules, 2021. A public awareness campaign is being launched
for various stakeholders. Aizawl City has been declared a Plastic-Free City as
of 2nd October, 2019. The State Government and the Municipality are working
together to declare all Government and ULB offices as Single Use Plastics
(SUPs) Free Offices.
5.107 Registration of Births & Deaths: With effect from August 2016, the Aizawl
Municipal Corporation began registering births and deaths within the
municipal area and hospitals. Since then, it has taken the necessary steps to
ensure that all births and deaths within its jurisdiction are duly registered.
AMC has been working with 109 assigned Registrars of Births and Deaths
within the municipal area and hospitals to achieve this goal. Total number of
births and deaths registered since August, 2016 till the middle of 2022 stands
at-
a) Registration of Births - 4537
b) Registration of Deaths - 722
5.108 Provision of urban amenities and facilities such as parks, gardens,

playgrounds: The Corporation has also taken several steps towards providing
basic urban amenities to the residents of Aizawl municipal area. A brief
highlight of such facilities being undertaken by the AMC is shown as below:
~ 128 ~
__________________________________________________________________________________
a) Widening of the Chanmari-Chaltlang road, a busy route within Aizawl

city, at a cost of ₹3.07 crore helps ease the movement of vehicular traffic
in this part of the city. The construction of pedestrian flyover bridge at
two busy locations in Aizawl city viz., Bazar Bungkawn and Canteen
Square ensures safe walking spaces for residents to cross the busy
streets.
b) Multilevel car parking at Sairang junction in Bawngkawn locality,

constructed at an estimated cost of ₹9.74 crore, provides the much
needed car parking facility at the busy Sairang junction area. In addition,
a second hand market having more than 200 seats for vendors is also
provided in this project, with the capacity to generate rental income on a
regular basis for the Municipality.
c) The Multilevel car parking at Tuikual South locality, being constructed

at a cost of ₹10.43 crore, besides providing vehicle parking facility, is also
planned to house vegetable markets and shopping mall along with a
rooftop auditorium having a capacity of 160 persons.
d) Pedestrian footpath constructed at more than 30 locations within the

municipal area under the Atal Mission for Rejuvenation and Urban
Transformation (AMRUT) at a cost of ₹11.475 crore, providing safe
walking spaces for residents to ease the congestion in the city streets.
e) Creation of an Eco-park at Zonuam locality at a cost of ₹88.70 lakh under

the Atal Mission for Rejuvenation and Urban Transformation (AMRUT)
helps create more green spaces and parks for the resident of the
Municipality. In this connection, the renovation of Aizawl City Park under
the same scheme at a cost of ₹1.01 crore is also noteworthy.
f) An AMC Sports Complex is also under construction in Bawngkawn

Brigade area at an estimated cost of ₹200.00 lakh.
g) The AMC also undertakes maintenance of the more than 7000 street
lights within the municipal area, with monthly bill costing nearly ₹3.40
lakh. The Municipality has pushed for installation of solar streetlights to
light up the city streets at nearly 6000 locations.
Devolution of functions to Local Councils
5.109 The Mizoram Municipalities Act, 2007 as amended provides for a third tier of
municipal administration in the context of Mizoram viz., the Local Councils in
every locality within a Ward, under sub-section (3) of section 23 of the Act, to
look after matters of local and internal nature according to the Mizo traditions,
customs and practices. In fact, the State Government or the Municipality or
~ 129 ~
__________________________________________________________________________________
the Ward Committee can entrust one or more of the functions of the Ward
Committee to the Local Council within the area of the locality.
5.110 Subject to general supervision of the Ward Committee or the Municipality, the
Local Councils supervise and monitor –
a) detection of violation of various provisions of the Act such as illegal

construction, encroachments on Municipal and public properties,
public nuisance, evasion of taxes, unlicensed activities, and the like;
b) arresting wasteful uses of various Municipal services like tap water,
street hydrant, street light, parks and playgrounds, community
centre, and the like;
c) detection of unclean premises and accumulated garbage, with powers
to require the owner or the occupier of such premises to clean and to
dispose of such garbage;
5.111 The Local Council may also identify any uncompleted work or works of poor
quality or materials of inferior quality used for any work within the Ward and
report such matter to the authority concerned for action. The Local Council is
to render all possible assistance to the Ward Committee in the discharge of
their special functions related to planning and development.
5.112 Similar to the Village Councils in respect of rural areas, the Local Councils
indeed have the power to enforce Hnatlâng in their respective areas in the
interest of public whenever occasion so demands with the power to impose
fines on the defaulters. Whenever hnatlang is convened, it becomes the duty
of every household to render such community service.
5.113 In the context of Mizoram, Local Councils are at the interface of citizen-
municipal administration and thus, serve as an important agent of the
Municipality in the delivery of core civic services. The services delivered by the
Local Councils as an agent of the Municipality within their respective locality
may be summarised as follows:
a) Collection and disposal of solid waste under the Aizawl Municipal

Corporation Solid Waste Management Bye-Laws, 2019.
b) Collection of property tax under the Mizoram Municipalities (Property
Tax Management) Rules, 2014.
c) Issue of No Objection Certificate (NOC) for grant of permission for
construction of buildings under the Aizawl Municipal Council Building
Regulations, 2012.
d) Staying of illegal or irregular building constructions under the
aforesaid building regulations.
e) Issue of NOC for grant of licenses by the Municipality to any person
carrying on any trade, profession or calling under the Aizawl
Municipal Council Licensing Regulations, 2012.
~ 130 ~
__________________________________________________________________________________
f) Issue of NOC for grant of permission by the Municipality under the

Aizawl Municipal Corporation Site Development and Slope
Modification Regulations, 2017.
g) Staying of illegal or irregular site development works under the
aforesaid Regulations.
h) Issue of NOC for grant of permission by the Municipality under the
Aizawl Municipal Council Display of Advertisements and Hoardings
Regulations, 2013.
i) Dissemination of information to the general public.
j) Implementation of works under the Councillor Ward Development
Fund.
Devolution of funds to Municipalities
5.114 Devolution of funds from the State Government is a significant source of

revenue for the Municipalities in Mizoram in view of the comparatively low
level of generation of own source revenues. The 1st State Finance Commission
recommended a 17.50 percent horizontal share for the Aizawl Municipal
Corporation within the 15 percent vertical devolution to local bodies from the
State’s Own Tax Revenue. The recommended share of taxes or tax devolution
for the AMC year-wise during the period from 2015-16 to 2019-20 is shown
in column 2 of the Table 5.11 below. Column 3 of the Table shows the actual
receipts of tax devolution year-wise by the Municipality. It may be reiterated
that the recommendations of the 1st SFC was accepted by the State
Government to be implemented effective from 2016-17, thus leaving out the
recommendations meant for the year 2015-16. It can be seen that the actual
tax devolution exceeds the projections for all the years, implying that the State
generated more own tax revenues than as projected by the 1st SFC. As a matter
of fact, the actual tax devolution exceeded the tax projections by a margin of
₹1390.12 lakh during the years 2015-20 despite no tax devolution in the year
2015-16. Tax devolution from the State Government is essentially the share
of the Municipality from the net proceeds of taxes, duties, tolls and fees
leviable by the State Government i.e., the State’s Own Tax Revenue in line
with the provisions in section 3(1)(a)(i) of the Mizoram Finance Commission
Act, 2010 to enable the Municipality to perform the functions assigned to
them.
5.115 According to the deficit financing mechanism recommended by the 1 st SFC,

grants-in-aid from the State Government is to be provided if only there is still
a deficit between the projected non-plan expenditure requirements of the AMC
minus the combination of the own revenue receipts of the Municipality, share
of tax devolution and urban local body grants from the 14th Finance
Commission. As per this mechanism, grants-in-aid need not be given to the
Municipality by the State Government since no such deficits were in existence
during the five years of the 1st SFC period, thanks to the substantial amount
of urban local body grants including performance grants from the 14th Finance
~ 131 ~
__________________________________________________________________________________
Commission. Needless to mention that the transfer for the year 2015-16 to the
AMC was in the form of grants-in-aid, instead of tax devolution, since the State
Government implemented the recommendations of the 1st SFC effective from
2016-17 only.
Table 5.11 Devolution of funds from the State and Centre to Aizawl Municipal
Corporation
(₹ in lakh)
Projected grants-in-
received from State

received from State
Government as per
State Government
transfers from the
Projected share of
Government (3+6)
Total projected
Total transfers
14th FC grants
aid from State

Share of taxes
Grants-in-aid
Government
taxes as per
received
received
1st SFC
1st SFC
Years
(2+5)
1 2 3 4 5 6 7 8
2015-16 770.70 0.00 2968.91 0.00 584.87 770.70 584.87
2016-17 887.07 333.66 1375.5 0.00 0.00 887.07 333.66
2017-18 1020.97 2905.4 2192.5 0.00 0.00 1020.97 2905.40
2018-19 1175.13 1939.56 1990.5 0.00 0.00 1175.13 1939.56
2019-20 1352.56 1417.93 4486.5 0.00 0.00 1352.56 1417.93
2015-20 5206.43 6596.55 13013.91 0.00 584.87 5206.43 7181.42

Source: Aizawl Municipal Corporation and 1st SFC Report
5.116 The actual transfers from the State Government to the AMC i.e., share of taxes
plus grants-in-aid, fell short of the projected transfers for the years 2015-16
and 2016-17 while the State transfers exceeded the projected amount for all
the remaining three years from 2017-18 to 2019-20 as can be seen at column
8 of the aforesaid Table. Taking the cumulative of the five years from 2015-16
to 2019-20, the actual State transfers in column 8 exceeded the projected
amount expected from the State Government by a margin of ₹1974.99 lakh.
In other words, the actual State transfer stands at 137.93 percent of the
projected amount.
5.117 The Municipality also receives grants for implementation of certain Centrally
Sponsored Schemes through the State Government such as the Atal Mission
for Rejuvenation and Urban Transformation (AMRUT), Swachh Bharat
Mission-Urban, Deendhayal Antyodaya Yojana-National Urban Livelihood
Mission (DAY-NULM). These fund transfers are sporadic in nature and are
essentially tied funds earmarked for implementation of certain
projects/works. Since these are not Finance Commission grants, the
Municipality heavily depends upon the goodwill of the State Government to
receive these grants.
~ 132 ~
__________________________________________________________________________________
Devolution of functionaries to Municipalities
5.118 The State Government has so far created 225 posts for running the
establishment of Aizawl Municipal Corporation to help facilitate delivery of
various civic services to the residents of Aizawl city. Out of the 225 sanctioned
posts, 138 posts have been filled up on regular or deputation or contract or
muster roll or co-terminus basis. Municipal Commissioner is the
administrative head of the Aizawl Municipal Corporation. The strength of
Officers and staff under Aizawl Municipal Corporation is highlighted as under:
Table 5.12 Strength of officers and staff in Aizawl Municipal Corporation
Sl. Officers and staff Regular Deputa Contract Muster Total

No. tion Roll
1 No. of Group 'A' Officers 9 2* 0 0 11
2 No. of Group 'B' (Gazetted) 0 0 2 0 2
Staff
3 No. of Group 'B' 34 1 1 1 37
(Non-Gazetted) Staff
4 No. of Group 'C' Staff 31 0 0 2 33
5 No. of Group 'D' staff 33 0 0 2 35
Sub Total 118
6 No. of co-terminus staff 0 0 0 0 20
(Personal Branch of Mayor,
Dy. Mayor & Executive
Councilors)
108 3 3 4 138
Source: Aizawl Municipal Corporation
5.119 Tables 5.13A and 5.13B present the expenditure incurred by the Aizawl
Municipal Corporation towards the salary of its officers and staff for the years
2015-16 till 2020-21, increasing at a compound annual growth rate of 17.70%
during the six years under consideration from ₹223.77 lakh in 2015-16 to
₹507.89 lakh in 2020-21. The tables show the salary of the officers and staff
appointed either on regular basis or on deputation basis excluding those
appointed on contract or muster roll basis.
~ 133 ~
__________________________________________________________________________________
Table 5.13A Expenditure on salary of regular employees (2015-16 to 2017-18)

(₹ in lakh)
2015-16 2016-17 2017-18
Level
No. No. No. No.
Sl of pay
Name of post of of No. of Salary of No. of Salary of No. of Salary
No in pay
posts post post expendi- post post expendi- post post expendi-
matrix
filled vacant ture filled vacant ture filled vacant ture
up up up
1 Municipal 1 14 1 0 12.43 1 0 13.49 1 0 16.63
Commissioner
2 Secretary 1 12 1 0 9.08 1 0 8.88 1 0 9.73
Executive 1
3 11 1 0 9.08 1 0 9.93 1 0 7.99
Engineer
1
4 Medical Officer 11 0 1 0.00 0 1 0.00 0 1 0.00
1
5 Town Planner 11 0 1 0.00 0 1 0.00 0 1 0.00
Executive 1
6 10 0 1 0.00 0 1 0.00 0 1 0.00
Officer
1
7 Superintendent 10 1 0 6.58 1 0 7.06 1 0 7.69
Finance & 1
8 Accounts 10 1 0 0.00 1 0 5.59 1 0 6.71
Officer
Assistant Town 2
9 10 2 0 7.22 2 0 15.11 2 0 16.46
Planner
Assistant 2
10 10 1 1 7.01 1 1 7.55 1 1 8.22
Architect
11 Assistant 1 10 0 1 0.00 0 1 0.00 0 1 0.00
Engineer
Private
12 Secretary to 1 10 0 1 0.00 0 1 0 1 0.00
CEO
13 Assistant 2 7 1 1 5.62 1 1 2.46 1 1 0.00
14 Accountant 1 7 0 1 0.00 0 1 0.00 0 1 0.00
Junior 10
15 7 9 1 43.54 9 1 46.90 9 1 51.08
Engineer
Planning 11
16 7 9 2 34.75 9 2 47.60 9 2 51.82
Assistant
Stenographer 7
17 Grade-III 7 5 2 19.05 5 2 8.73 5 2 9.63
(Personal
Assistant)
18 Upper Division 2 6 0 2 0.00 0 2 0.00 0 2 0.00
Clerk
19 Data Entry 1 6 0 1 0.00 0 1 0.00 0 1 0.00
Operator
Sanitary 1
20 5 0 1 0.00 0 1 0.00 0 1 0.00
Inspector
21 Surveyor 1 5 0 1 0.00 0 1 0.00 0 1 0.00
22 Urban 2 5 2 0 3.84 2 0 8.16 2 0 8.88

Surveyor-II
23 Draftsman-III 1 4 0 1 0.00 0 1 0.00 0 1 0.00
24 Lower Division 18 4 15 3 30.03 15 3 42.71 15 3 46.56

Clerk
~ 134 ~
__________________________________________________________________________________
1
25 Electrician-III 4 0 1 0.00 0 1 0.00 0 1 0.00
26 Driver-III 17 2 5 12 10.19 5 12 4.66 5 12 5.13

27 Peon/Group D 29 1 14 15 25.35 14 15 39.91 14 15 43.42
28 Sweeper 3 1 0 3 0.00 0 3 0.00 0 3 0.00
29 Sweeper-cum- 1 1 0 1 0.00 0 1 0.00 0 1 0.00

Mali
30 Chowkidar- 1 1 0 1 0.00 0 1 0.00 0 1 0.00
cum-Sweeper
31 Chowkidar 2 1 0 2 0.00 0 2 0.00 0 2 0.00
32 Terminal 3 1 0 3 0.00 0 3 0.00 0 3 0.00

Attendant
TOTAL 128 68 60 223.77 68 60 268.74 68 60 289.95
Table 5.13B Expenditure on salary of regular employees (2018-19 to 2020-21)

(₹ in lakh)
2018-19 2019-20 2020-21
Level
No. No. No.
Sl. No. of of pay
Name of post of No. of Salary of No. of Salary of No. of Salary
No posts in pay
post post expendi post post expendi post post expendi
matrix
filled vacant ture filled vacant ture filled vacant ture
up up up
1 Municipal 1 14 1 0 20.12 1 0 22.10 1 0 21.91
Commissioner
Secretary/Joint
2 Municipal 1 12 1 0 11.14 1 0 12.74 1 0 14.73
Commissioner
Deputy
3 Municipal 1 11 0 1 0.00 0 1 0.00 0 1 0.00
Commissioner
4 Engineering 1 11 0 1 0.00 0 1 0.00 0 1 0.00
Geologist
5 Executive 1 11 1 0 9.94 1 0 11.57 1 0 15.87
Engineer
6 Medical Officer 1 11 0 1 0.00 0 1 0.00 0 1 0.00
7 Town Planner 2 11 0 2 0.00 0 2 0.00 2 0 0.00
8 Superintendent 1 10 1 0 9.11 1 0 10.77 1 0 10.34
Assistant
9 Municipal 2 10 0 2 0.00 0 2 0.00 0 2 0.00
Commissioner
Assistant
10 Municipal 1 10 0 1 0.00 0 1 0.00 1 0 0.00
Commissioner
(IT)
11 Geologist 1 10 0 1 0.00 0 1 0.00 0 1 0.00
12 Executive 1 10 0 1 0.00 0 1 0.00 0 1 0.00

Officer
Finance &
13 Accounts 1 10 1 0 8.04 1 0 9.46 1 0 9.94
Officer
14 Assistant Town 2 10 2 0 19.67 2 0 22.93 2 0 23.95
Planner
15 Assistant 3 10 1 2 9.83 1 2 11.45 1 2 14.91
Architect
~ 135 ~
__________________________________________________________________________________
16 Assistant 4 10 0 4 0.00 0 4 0.00 1 3 2.94

Engineer
Urban Animal
17 Husbandry & 4 10 0 4 0.00 0 4 0.00 0 4 0.00
Veterinary
Officer
Private
18 Secretary to 1 10 0 1 0.00 0 1 0.00 0 1 0.00
Municipal
Commissioner
Assistant
19 Enforcement 6 8 0 6 0.00 0 6 0.00 0 6 0.00
Officer
Assistant
20 Programme 1 8 0 1 0.00 0 1 0.00 0 1 0.00
Officer
Assistant
21 Programme 1 8 0 1 0.00 0 1 0.00 0 1 0.00
Officer (IT)
22 Assistant 2 7 2 0 13.46 2 0 21.22 1 1 22.24
Accountant/
23 Assistant 3 7 0 3 0.00 0 3 0.00 1 2 2.06
Accounts
Officer
24 Junior Engineer 18 7 9 9 60.71 9 9 71.70 11 7 81.60
25 Planning 19 7 9 10 62.33 9 10 72.92 10 9 77.70

Assistant
Stenographer
26 Grade-III 7 7 5 2 10.15 5 2 13.32 6 1 14.23
(Personal
Assistant)
27 Upper Division 7 6 0 7 0.00 0 7 0.00 3 4 5.16
Clerk
28 Enforcement 21 6 2 19 0.00 2 19 0.00 3 18 1.40
Inspector
29 Surveyor 1 5 0 1 10.78 0 1 12.66 0 1 13.21
30 Lower Division 27 4 15 12 55.53 15 12 66.13 25 2 79.51

Clerk
31 Electrician-III 2 4 0 2 0.00 0 2 0.00 1 1 1.03
32 Driver-III 17 2 5 12 5.40 5 12 7.10 17 0 17.48
33 Group-'D' 61 1 14 47 52.30 14 47 62.40 31 30 77.68
TOTAL 222 69 153 358.51 69 153 428.47 121 101 507.89

5.120 The Table 5.14 shows the expenditure of the Aizawl Municipal Corporation on
the salary of the employees engaged on contract for a specified period of time
by signing a deed of agreement. These employees on contract have been
regularised (i.e., given permanent appointment) in their corresponding posts
after they have been engaged continuously for a period of 5 years as per the
provision of rule 7 of the Mizoram Municipal Common Cadre Service Rules,
2019 and rule 6 of the Mizoram Municipal Subordinate Service Rules, 2019,
thus, becoming a permanent employees of the Municipality.
~ 136 ~
__________________________________________________________________________________
Table 5.14 Expenditure on salary of contract employees

(₹ in lakh)
Sl. No. of 2015- 2016- 2017- 2018- 2019- 2020-
Name of post
No. post 16 17 18 19 20 21
1 Town Planner 1 1.82 0.00 0.00 0.00 0.00 0.00
2 Executive Officer 1 3.02 3.02 3.02 3.02 3.02 3.02

Assistant
3 1 3.02 3.02 3.02 3.02 3.02 3.02
Architect
Assistant
4 1 3.02 3.02 3.02 3.02 3.02 3.02
Engineer
System
5 1 3.02 3.02 3.02 3.02 3.02 3.02
Administrator
6 Accountant 1 2.14 2.14 2.14 2.14 2.14 2.14
7 Junior Engineer 1 2.14 2.14 2.14 2.14 2.14 2.14

Management
Information
8 2 4.29 4.29 4.29 4.29 4.29 4.29
System (MIS)
Associate
9 Stenographer-II 1 0 2.14 2.14 2.14 2.14 2.14
Upper Division
10 2 3.88 3.88 3.88 3.88 3.88 3.88
Clerk
Data Entry
11 1 1.63 1.63 1.94 1.63 1.63 1.94
Operator
Sanitary
12 1 1.63 1.63 1.63 1.63 1.63 1.63
Inspector
13 Draftsman-III 1 1.42 1.42 1.42 1.42 1.42 1.42
Lower Division
14 2 9.15 8.56 8.56 9.15 8.56 8.56
Clerk
15 Driver-III 1 1.11 1.11 1.11 1.11 1.11 1.11
16 Group-D 5 5.85 5.85 5.85 5.85 5.85 5.85
TOTAL 23 47.14 46.87 47.18 47.46 46.87 47.18

5.121 The Aizawl Municipal Corporation also engages a number of employees on

Muster Roll basis as shown in Table 5.15 below, the expenditure for
engagement of such casual employees rising from ₹57.03 lakh in 2015-16 to
₹104.60 lakh in 2020-21 at a compound annual growth rate of 12.4%. The
engagement of Muster Roll employees largely follows the classification of jobs
and their wages as prescribed by the State Government in Labour,
Employment, Skill Development and Entrepreneurship (LESDE) Department.
~ 137 ~
__________________________________________________________________________________
Table 5.15 Expenditure on wages of Muster Roll employees

(₹ in lakh)
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
No. of No. of No. of No. of
Name of Expen Expen Expen Expen No. of Expen
person person person person No. of Expendi
post diture diture diture diture persons diture
s s s s persons ture on
on on on on engage on
engage engage engage engage engaged wages
wages wages wages wages d wages
d d d d
Skilled-I 7 9.70 9 15.11 9 15.11 7 11.75 7 16.35 7 16.35
Skilled-II 17 19.23 20 27.01 20 27.01 19 25.65 18 34.16 18 34.16
Unskilled 35 28.10 35 34.49 35 34.49 41 40.40 42 58.25 39 54.09
TOTAL 59 57.03 64 76.61 64 76.61 67 77.80 67 108.76 64 104.60
5.122 The existing strength of officers and staff in the Aizawl Municipal Corporation
will hardly be in a position to manage the three remaining functions not yet
transferred from the State Government viz., water supply, roads and bridges,
and fire services. Implementation of the 15 functions already transferred to
the Municipality along with the corresponding Centrally Sponsored Schemes
is also a challenge for the Corporation. With a view to enable the Corporation
to deliver the remaining functions, creation of posts for the Municipality and
filling up of such posts with fresh recruits does not appear to be viable since
it entails huge additional establishment expenditure. In fact, the percentage
share of expenditure on the salary of officers and staff of the Corporation
already touches 27% of the entire revenue expenditure in the financial year
2021-22. The own source revenues of the Municipalities, in general, is limited
and grants from the Union Finance Commissions cannot be utilised for
payment of salaries and allowances. Such being the case, the establishment
expenses of the Municipalities largely have to be borne from the limited own
source revenues and the transfers from the State Government. Considering
all these limitations, the Commission considers that an optimal solution
to facilitate the Municipality to perform the functions analogous to the
functions performed by other local bodies established under Part IX-A of
the Constitution is the deployment of officers and staff from the State
Government either by means of deputation to the Municipality or attach
the requisite officers and staff performing similar functions under the
Departments of the State Government to the Municipalities with
proportionate increase in the transfers from the State Government to
meet their salary expenditure with corresponding reduction in the
budgetary allocation of such Departments, resulting in a net zero
expenditure on account of the deployment of more personnel to the
Municipalities.
5.123 Recruitment of more number of municipal personnel for urban local bodies by
means of direct recruitment carries the additional burden of ever increasing
expenditure on salaries, allowances, pensions and other health benefits. One
~ 138 ~
__________________________________________________________________________________
solution appears to be outsourcing of such tasks/functions to reliable agencies

having the expertise in such fields. Outsourcing does not entail payment of
salaries which otherwise is mandatory till the personnel retire from service and
is freed from the burden of pension payments too. The Second
Administrative Reforms Commission also recommended that the State
Governments should encourage local bodies to outsource specific
functions to public or private agencies, as may be appropriate, through
enabling guidelines and support. Outsourcing of activities should be
backed by development of in-house capacity for monitoring and oversight
of outsourced activities. The Commission also reiterates the
recommendation of the Second Administrative Reforms Commission with
regard to outsourcing of personnel to deliver various civic functions
without compromising on quality of services. This will free the
Municipalities from the burden of mounting salaries and pension
payments in the long run.
5.124 The Commission also feels that strengthening the capacity of the existing
officers and staff of the Municipality cannot be ignored with a view to enable
them to deliver the functions as mandated in the Mizoram Municipalities Act,
2007 as amended. With several Centrally Sponsored Schemes such as Atal
Mission for Urban Rejuvenation and Transformation (AMRUT), Swachh Bharat
Mission-Urban, Pradhan Mantri Awaas Yojana-Urban (PMAY-U), Deendhayal
Antyodaya Yojana National Urban Livelihood Mission (DAY-NULM), etc. being
primarily implemented through urban local bodies, it is clear that sustained,
well planned capacity building needs to be undertaken to ensure that the
Municipalities have the capacity and the capability to deal with the challenges
in implementing these Centrally Sponsored Schemes apart from being able to
fulfil their mandatory statutory functions.
5.125 The Commission recommends that the Department of Urban

Development and Poverty Alleviation, in consultation with the apex
training body of the State viz., Administrative Training Institute (ATI)
and the Municipalities, prepare and implement a structured capacity
building programme for the officers and staff of the Municipalities in a
time bound manner. The programme should not only be theoretical in
nature but include a significant proportion of practical aspects such as
case studies, field visits, group discussions, presentations, etc. Best
practices in urban local governance, project management, financial
management, management information system, etc. may invariably form
a part of the programme. In addition, a special capacity building
programme be organized by the ATI covering the entire gamut of
municipal administration for the elected Councillors only to enable them
to discharge their duties effectively.
5.126 The Commission has learned that the State Government has so far created the
following posts as shown in Table 5.16 for the establishment of the Municipal
~ 139 ~
__________________________________________________________________________________
Council at Lunglei vide No.B.13017/114/2021-UD&PA dt. 24.01.2022:
Table 5.16 Posts created for Lunglei Municipal Council
Sl. No. Name of post Number of post Level in pay matrix

1. Chief Executive Officer 1 Level 13
2. Secretary 1 Level 12
3. Superintendent 1 Level 10
4. Finance & Accounts Officer 1 Level 10
5. Assistant 1 Level 7
5.127 The State Government has gradually appointed officers and staff to the Council
in the aforesaid posts through the method of deputation from relevant
organized services during the latter part of the year 2022 itself. Besides, staff
from the Aizawl Municipal Corporation and the office of the District Urban
Development Officer (DUDO) in Lunglei District have either been transferred
or temporarily attached to the Council as shown in Table 5.17 below to enable
the new Municipality to deliver various services even before the election of the
Councilors is conducted:
Table 5.17 Staff transferred or attached to Lunglei Municipal Council
Sl. No. Name of post Number of staff Source

1. Junior Engineer 1 AMC
2. Upper Division Clerk 1 AMC
3. Lower Division Clerk 1 AMC
4. Driver 2 AMC
5. Driver 3 DUDO, Lunglei
6. Sweeper 21 DUDO, Lunglei
7. Lorry Attendant 2 DUDO, Lunglei
5.128 An optimal number of municipal personnel are immediately required to fulfil

statutory obligations and provide basic civic services to the residents of
Lunglei municipality. The existing officers and staff on deputation or
attachment will struggle to carry out all 15 functions delegated to the new
Municipality. Aside from critical field personnel, clerical support staff in
various sections of the Municipality such as establishment, accounts,
taxation, licencing, and so on are also required. The Municipality cannot rely
solely on staff attached to or delegated from other organisations; it requires
its own municipal personnel who will serve as the Municipality's institutional
memory even as elected Councillors continue to change every five years. As a
result, the Commission believes it critical for the State Government to
~ 140 ~
__________________________________________________________________________________
create an optimal number of posts for the Lunglei Municipal Council, in

addition to the posts already created in the year 2022, which may
invariably consist of the posts listed in Table 5.18. The State Government
may finalise the number of posts to be created in consultation with the
Municipality concerned, taking into account the functions to be
performed.
Table 5.18 Staffing pattern for Lunglei Municipal Council
Tentative number
Sl. No. Name of post Level in pay matrix
of post
Establishment section
Private Secretary to Chief
1. 10 1
Executive Officer
2. Personal Assistant to Secretary 7 1
3. Upper Division Clerk 6 1
4. Lower Division Clerk 4 2
Group ‘D’ (to be posted to
5. 1 20
various sections)
Information Technology section
6. Executive Officer (IT) 10 1
Assistant Programme Officer
7. 8 1
(IT)
Accounts section
8. Assistant Accounts Officer 7 1
Taxation section
11. Assistant Enforcement Officer 8 1
12. Enforcement Inspector 6 1
Engineering section
14. Municipal Engineer 11 1
15. Assistant Municipal Engineer 10 2
16. Junior Engineer 7 4
Urban planning and building regulations section
17. Town Planner 11 1
18. Assistant Town Planner 10 1
19. Assistant Architect 10 1
20. Planning Assistant 7 4
Solid waste management section (including plastic waste management)
21. Executive Officer 10 1
~ 141 ~
__________________________________________________________________________________

Health and sanitation section
24. Medical Officer 10 1
25. Staff Nurse 7 2
26. Health worker 4 4
Licensing section
Advertisement and vending section
Birth and death registration section
34. Inspector of Statistics 7 1
Social development section
36. Assistant Programme Officer 8 1
Public amenities section (i.e. street lights, bus stand, parks, parkings,
etc.)
Profile of Autonomous District Councils
5.129 The Autonomous District Councils (ADCs) were established in Mizoram in

1952 with the establishment of the Lushai Hills District as per the provisions
of the Assam Autonomous District (Constitution of District Councils) Rules,
1951 under the Sixth Schedule to the Indian Constitution. The Pawi-Lakher
Regional Council (PLRC) was also established in 1952 under the Sixth
Schedule of the Indian Constitution. The PLRC, which existed until 1972, was
the only Regional Council established under the Sixth Schedule to the Indian
Constitution. These District Councils were primarily established to enable
tribal people to govern themselves in accordance with the law of the land.
5.130 The Mizo District Council was abolished in 1972 with the elevation of the Mizo
District Council to the status of Union Territory under the North-Eastern
Areas (Re-organisation) Act, 1971. Meanwhile, on the 2nd April, 1972, the
~ 142 ~
__________________________________________________________________________________
PLRC was divided into three and subsequently elevated to the status of
Autonomous District Councils on the 29th April, 1972, namely the
Autonomous District Council of Lai (LADC), the Autonomous District Council
of Mara (MADC), and the Autonomous District Council of Chakma (CADC).
The three ADCs cover two administrative districts viz., Lawngtlai and Siaha.
MADC serves the entire Siaha district, whereas LADC and CADC serve the
entire Lawngtlai district, i.e., LADC serves the two civil sub-divisions of
Sangau and Lawngtlai, and CADC serves the entire Chawngte civil sub-
division.
5.131 The District Council and Minority Affairs Department is the nodal Department
under the Government of Mizoram which is entrusted with the role of looking
after the affairs of the ADCs, and the allocation of funds by the State Finance
Department to them is channelled through this department. Thus, the District
Council and Minority Affairs Department becomes the main controlling
authority with regard to the affairs of the ADC of the State.
5.132 Every ADC has a fixed tenure of five years, unless dissolved earlier, from the
date of its first meeting. Qualifications for membership are: (1) being a citizen
of India, (2) being not less than 25 years of age, and (3) being entitled to vote
in the election of Member of District Council (MDC). The Chairman and
Deputy Chairman are elected from among the members and are similar to the
Speaker and Deputy Speaker of the State Legislative Assembly. The ADC also
has an Executive Member (EM), whose function is similar to that of the
Minister of the State Government, while the Chief Executive Member (CEM),
who is the leader of the majority party, is the leader of the house. In addition,
each ADC has an Executive Secretary and Legislative Secretary, similar to the
Chief Secretary and Assembly Secretary, respectively, in the State
Government. The CEM is the head of the Executive Committee and is elected
by the MDCs from among them. In addition to the elected MDCs, there are
members nominated by the Governor on the advice of the CEM. There are 29
members, 25 elected and 4 nominated, in LADC; 28 members, 25 elected and
3 nominated, in MADC; and 24 members, 20 elected and 4 nominated, in
CADC.
5.133 A brief profile of the three autonomous district councils is presented at Table
5.19 for better understanding and comparison.
~ 143 ~
__________________________________________________________________________________
Table 5.19 Profile of Autonomous District Councils

Sl.
Particulars CADC LADC MADC
No.
1 Area (in sq. km) 677.00 1781.64 1519.21
2 Number of Households 8829 14155 11144
3 Total Population 45307 72587 56574
3(a) Male 23457 37142 28594
3(b) Female 21850 35445 27980
4 Sex Ratio 931 954 979
Population Density
5 67 39 39
(per sq. km)
6 Literates (%) 46.4 78.0 90.0
6(a) Male 60.5 82.7 92.6
6(b) Female 31.1 73.0 87.3
Population below 6 years
7 19.3 18.9 17.1
(%)
7(a) Male 19.0 18.8 17.5
7(b) Female 19.7 19.0 16.6
Scheduled Tribe
8 98.2 93.5 96.6
Population
Workers
9 41.3 37.0 34.4
(% of total population)
9(a) Male 48.6 46.1 42.7
9(b) Female 33.6 27.4 25.9
Main Workers
10 79.0 86.8 75.5
(% of total workers)
10(a) out of which - Cultivator 75.6 61.0 48.1
Source: https://censusindia.gov.in and MIRSAC
Devolution of powers and functions to the Autonomous District Councils
5.134 The Autonomous District Council is basically a mini-government at the

district-level with extensive legislative, executive, judicial and financial
powers, apparently enjoying more powers than the panchayats or the
municipalities as provided in Part IX and IX-A of the Constitution. It has a
strong Constitutional foundation, as the provisions of the Sixth Schedule to
the Indian Constitution apply to the administration of tribal areas in Assam,
Meghalaya, Tripura, and Mizoram. Article 244 (2) provides a solid
Constitutional foundation for the establishment of ADCs under the provisions
of the Sixth Schedule, while article 275 (1) provides a solid foundation for
them to obtain grants-in-aid from the Consolidated Fund of India through
~ 144 ~
__________________________________________________________________________________
concerned State Governments. As a result, the State government has

essentially been the parent and custodian of the ADCs under its jurisdiction.
5.135 The ADCs derive their powers and functions from the Constitutional
provisions enshrined in the Sixth Schedule itself. They are indeed different
from either the Municipalities or the Panchayats since they are endowed with
powers and functions by the Constitution itself without having to rely on the
State Legislature to endow them with such powers and authority. A summary
of the powers and functions of the Autonomous District Councils is presented
below.
Legislative powers
5.136 Paragraph 3 of the Sixth Schedule empowers the District Councils to make
laws with regard to:
a) the allotment, occupation or use, or the setting apart, of land, other than
any land which is a reserved forest for the purposes of agriculture or
grazing or for residential or other non-agricultural purposes or for any
other purpose likely to promote the interests of the inhabitants of any
village or town;
b) the management of any forest not being a reserved forest;
c) the use of any canal or water-course for the purpose of agriculture;
d) the regulation of the practice of jhum or other forms of shifting
cultivation;
e) the establishment of village or town committees or councils and their
powers;
f) any other matter relating to village or town administration, including
village or town police and public health and sanitation;
g) the appointment or succession of Chiefs or Headmen;
h) the inheritance of property;
i) marriage and divorce;
j) social customs.
5.137 However, all laws enacted under this provision shall take effect only after
obtaining the assent of the Governor of the State.
Executive powers
5.138 Paragraph 6 (1) of the Sixth Schedule empowers the District Councils to
establish, construct, or manage primary schools, dispensaries, markets, cattle
pounds, ferries, fisheries, roads, road transport and waterways in the district.
The District Councils may, with the previous approval of the Governor, also
make regulations for the regulation and control of the aforesaid functions and
may further prescribe the language and the manner in which primary
education shall be imparted in the primary schools in the district.
~ 145 ~
__________________________________________________________________________________
5.139 Sub-paragraph (2) of paragraph 6 of the Sixth Schedule empowers the

Governor to entrust, with the consent of any District Council, either
conditionally or unconditionally to the Councils functions in relation to
agriculture, animal husbandry, community projects, co-operative societies,
social welfare, village planning or any other matter to which the executive
power of the State extends. In exercise of this power, the Governor of Mizoram
has entrusted certain subjects/functions under various Departments of the
State Government to the Autonomous District Councils of Lai, Mara and
Chakma through notifications issued on 20th August, 1986, 22nd September,
1993 and 29th August, 2011. The extent of implementation of the functions
entrusted to the ADCs is a subjective matter and will be analysed separately.
5.140 The executive functions of the District Councils are discharged by the
Executive Committee in each Council headed by the Chief Executive Member
along with Executive Members in charge of various functions of the Council.
Judicial powers
5.141 Paragraph 4 of the Sixth Schedule to the Constitution empowers Autonomous
District Councils to constitute village councils or courts for the trial of suits
and cases between parties all of whom belong to Scheduled Tribe within its
district to the exclusion of any court in the State.
5.142 The District Council within its district, or any court constituted in that behalf
by the District Council, shall exercise the powers of a court of appeal in respect
of all suits and cases triable by a village council or court and no other court
except the High Court and the Supreme Court shall have jurisdiction over
such suits or cases.
5.143 The District Council, with the previous approval of the Governor, can make
rules relating to
a) the constitution of village councils and courts and the powers to be

exercised by them;
b) the procedure to be followed by village councils or courts in the trial
of suits and cases;
c) the procedure to be followed by the District Council or any court
constituted by such Council in appeals and other proceedings;
d) the enforcement of decisions and orders of such councils and courts;
e) all other ancillary matters
Financial powers
5.144 Paragraph 7 of the Sixth Schedule to the Constitution stipulates the
constitution of a District Fund for each Autonomous District Council to which
shall be credited all moneys received by the District Council for the
administration of the district. The accounts of the District Council are to be
kept in such form as the Comptroller and Auditor General of India may
~ 146 ~
__________________________________________________________________________________
prescribe while the Comptroller and Auditor-General can audit the accounts
of the District Councils in such manner as he may think fit, and the audit
report is to be submitted to the Governor who shall cause the report to be laid
before the Council.
5.145 Paragraph 8 of the Sixth Schedule also empowers the Autonomous District
Councils to
a) assess and collect land revenue following the principles for the time
being followed by the State Government in assessing lands for the
purpose of land revenue in the State generally;
b) levy and collect taxes on lands and buildings;
c) levy and collect tolls on persons resident within the district;
d) levy and collect taxes on professions, trades, callings and employments;
e) levy and collect taxes on animals, vehicles and boats;
f) levy and collect taxes on the entry of goods into a market for sale
therein, and tolls on passengers and goods carried in ferries;
g) levy and collect taxes for the maintenance of schools, dispensaries or
roads.
5.146 Paragraph 10 of the Sixth Schedule further empowers the District Councils of
an autonomous district to make regulations for the regulation and control of
money-lending or trading within the district by persons other than Scheduled
Tribes resident in the district.
5.147 Under paragraph 13 of the Sixth Schedule, the estimated receipts and
expenditure pertaining to an autonomous district which are to be credited to,
or is to be made from the Consolidated Fund of the State is to be first placed
before the District Council for discussion and then after such discussion be
shown separately in the annual financial statement of the State to be laid
before the Legislature of the State under article 202.
Entrustment of functions
5.148 It may be reiterated that the Governor of Mizoram has entrusted certain
subjects/functions under various Departments of the State Government to
the Autonomous District Councils of Lai, Mara and Chakma through
notifications issued on 20th August, 1986; 22nd September, 1993; and 29th
August, 2011 in exercise of the powers conferred under paragraph 6(2) of the
Sixth Schedule.
5.149 The aforesaid notifications enjoin the Administrative Departments concerned

to ensure that the entrusted functions are not undertaken again by their
offices in the Autonomous District Council areas with only skeleton staff
retained there for the purpose of statistical requirements and coordination
with a view to eliminate duplication of functions by the State Government
Departments and the Autonomous District Councils. The Commission, while
making its recommendations, is mandated by the terms of reference, to have
~ 147 ~
__________________________________________________________________________________
regard to the functions which may be transferred to the Autonomous District

Councils for the coming five years with effect from 1st April, 2021 and the
manner in which the existing functionaries of the State Government, who are
at the time of making recommendations are performing the functions
recommended for transfer to the local bodies, shall be transferred to the
Autonomous District Councils.
5.150 The extent to which the entrusted functions have been performed by the
Autonomous District Councils varies across different functions. Table 5.20
highlights whether or not the entrusted functions under 19 Departments
under the State Government as notified in the Government Notification dated
29th August, 2011 have actually been performed by the ADCs. Not
surprisingly, the actual performance of the entrusted functions by the ADCs
depends to a large extent upon the actual transfer of functions by the
concerned Departments of the State Government and gradual reduction in the
strength of staff posted in their respective offices. In fact, departments offer
one reason or another for the non-implementation of the Government
Notification towards transfer of entrusted functions to the ADCs within their
respective jurisdiction.
Table 5.20 Performance of entrusted functions by the ADCs

If the
answer in If the
If the
Col. (5) is answer in
answer in
No, name Col. (7) is
Col. (3) is
Whether Whether of the Whether No, name
No, name
the the State the of the
of the State
function function Depart- function State
Sl. Depart-
Name of function actually actually ment with actually Depar-
No. ment with
performed performed whom the performed tment with
whom the
by MADC by CADC function by LADC whom the
function is
[Yes/No] [Yes/No] is [Yes/No] function is
currently
currently currently
done in
done in done in
MADC area
CADC LADC area
area
1 2 3 4 5 6 7 8
1 AGRICULTURE (CROP
HUSBANDRY)
DEPARTMENT
a Agriculture link road No Agriculture Yes No Agriculture
b Distribution of planting No Agriculture Yes Yes
materials/certified seeds.
c Procurement of Yes Yes No Agriculture
machineries for
distribution at subsidized
rate.
~ 148 ~
__________________________________________________________________________________
d Procurement and Yes Yes No Agriculture

distribution of agriculture
implements and tools like
tractor, power tiller etc. at
subsidized rates.
e Procurement and No Agriculture Yes No Agriculture
distribution of water
pumping machineries at
subsidized rates.
f Procurement and No Agriculture Yes No Agriculture
distribution of manures
and fertilizers at
subsidized rates.
2 ANIMAL HUSBANDRY &
VETERINARY
DEPARTMENT
a Maintenance of Veterinary No AH & Vety Not No AH&Vety
Farm at Saiha by the applicable
MADC, and at Mampui by
LADC
b Financial Assistance to No AH & Vety Yes No AH&Vety
Poultry, Piggery and Dairy
farmers under duly
approved Rules (Rules to
be approved by the
Governor aprior).
3 ART & CULTURE
DEPARTMENT
a Grant-in-Aid for promotion No No Art & Yes
of Art and Culture under Culture
duly approved Rules
subject to the condition
that the beneficiaries will
not be entitled to the
State-Grant again.
b Establishment and Yes No Art & Yes
Maintenance of District Culture
Library.
c Establishment and Yes No Art & Yes
Maintenance of District Culture
Museum.
d Financial Assistance for Yes No Art & Yes
Publication, subject to the Culture
condition of setting up of
separate Publication
Board for each District
Council, and that the
District Councils shall be
outside the jurisdiction of
State Publication Board.
4 COOPERATION
DEPARTMENT
a Cooperation Department Yes Yes Yes
to be created in each
Autonomous District
Council within the limits of
the provisions of Sixth
~ 149 ~
__________________________________________________________________________________
Schedule to the
Constitution.
b Financial Assistance to Yes Yes Yes

Cooperative Societies,
subject to the condition
that the beneficiaries shall
not be entitled to any such
assistance again from the
State Government under
any existing Scheme.
c Registration, Inspection, No Yes Yes
Audit and Dissolution of
Cooperative Society in the
District Council area in
accordance with the
provisions of Mizorim
Cooperative Societies Act
and Rules.
5 DISASTER
MANAGEMENT, RELIEF
& REHABILITATION
DEPARTMENT
a Creation of corpus- fund in No DC, Siaha No DM&R No State
each of the three Governmen
Autonomous District t through
Councils for rendering DC office
assistance to victims of
natural calamities and for
proper implementation of
the Central Act on
Disaster Management.
6 FISHERIES
DEPARTMENT
a Grant-in-Aid to individual Yes No a) District
fish farmers for fish Pond Fisheries
Development and Department
integrated development of , Lawngtlai
pisciculture in the b) District
Autonomous Districts. Rural
Develop-
ment
Agency
(DRDA),
Lawngtlai
under
IWMP
c) Block
Developme
nt Officer
(BDO),
Lawngtlai
under
NREGA
7 HORTICULTURE
DEPARTMENT
~ 150 ~
__________________________________________________________________________________
a Cultivation of flowers Yes No Horticultur No Horticulture

crops e
b Cultivation of spices Yes No Horticultur No Horticulture
crops. e
c Cultisation of plantation Yes Yes No
crops such as Arecanut
and Coconut
d Procurement and No Horticulture Yes No
distribution of water
pumping machineries at
subsidized rate.
e Procurement and No Horticulture Yes No Horticulture
distribution of Horticulture
tools and implements.
f Procurement and No Horticulture Yes No Horticulture
distribution of manures
and fertilizers at
subsidized rate
g Micro irrigations No. Horticulture Yes No
h Pest control and No Horticulture Yes No Horticulture
management.
8 INDUSTRIES
DEPARTMENT
a Development of Handloom Yes Yes Yes
and Handicraft
b Procurement of tools and Yes Yes No
implementations for
distribution to artisans as
Grant-in-Aid
c Promotional assistance to No Industries Yes No
village industries
9 LOCAL
ADMINISTRATION
DEPARTMENT
a Construction of Steps, Yes Yes Yes
Culverts, Retaining walls
etc.
b Selection of Loanees for No DC, Siaha No State No
LIC housing loan, subject Govt.
to the provision that Housing
jurisdiction of the Heusing Loan
Loan Advisory Board set Advisory
up by the State Board
Government is not
extended to the
Autonomous Districts.
c Costructions of public No DC, Siaha Yes Yes
toilets
10 MINOR IRRIGATION
DEPARTMENT
a Minor Irrigation and Yes Yes No
construction of field
channels.
11 PUBLIC WORKS
DEPARTMENT
~ 151 ~
__________________________________________________________________________________
a Construction and Yes Yes Yes

maintenance of inter
village roads to link up
with PWD roads.
b Maintenance and No PWD Yes Yes
improvement of roads of
satellite towns and
villages.
12 PUBLIC HEALTH
ENGINEERING
DEPARTMENT
a Sewerage and Sanitation No PHE Yes No PHED,
including Rural Sanitation. Lawngtlai
Division
b Construction of Public No PHE Yes No PHED,
Latrines and Urinals under Lawngtlai
Rural Sanitation Scheme Division
c Spring Water Source No PHE Yes Yes
Development and storage
of water.
13 RURAL DEVELOPMENT
DEPARTMENT
a Social Education No Yes No
b Housing for Project staff No DRDA, RD No DRDA, No
Lawngtlai
c Rural Housing No DRDA, RD Yes Yes
d Other CSS projects, if so No DRDA, RD Yes No

permissible under the
Central Guidelines.
14 SOCIAL WELFARE
DEPARTMENT
a Old age pension scheme- Yes Yes Yes
identification & selection
of beneficiaries and
Drawal and Disbursement
of Pensions.
b Assistance to voluntary Yes Yes Yes
organizations
c Welfare of handicapped Yes Yes Yes
persons and destitutes
15 SOIL CONSERVATION
DEPARTMENT
a Promotional schemes for Yes Yes No
Coffee, Rubber and broom
stick Plantation.
b Water Harvesting Yes Yes No
schemes and assistance
for construction of Water
Tanks to deserving
persons.
16 SPORTS AND YOUTH
SERVICES
DEPARTMENT
~ 152 ~
__________________________________________________________________________________
a All schemes for promotion Yes Yes No

of sports and youth
services
17 SERICULTURE
DEPARTMENT
a Grand-in-Aid to private No DSO, Siaha Yes No
rearers under Promotional District
Scheme.
b Financial Assistance for No DSO, Siaha Yes No
Marketing/ selling of District
Cocoons.
18 TRANSPORT
DEPARTMENT
a Collection of Road Tax, No Transport No Transport No
Goods and Passenger
Tax for the vehicles
registered within the
Autonomous District
Council area subject to
amendment of the
relevant State- Rules.
19 URBAN DEVELOPMENT
AND POVERTY
ALLEVIATION
DEPARTMENT
a Construction of Steps No DC, Siaha Yes No DC,
Retaining Walls Culverts. Lawngtlai
Pavilion from funds under
NLCPR in the notified
Town areas.
Source: Autonomous District Councils of Lai, Mara and Chakma
5.151 There are two Departments with their functions mentioned in the Government
Notification dated 22nd September, 1993 to be entrusted to the Autonomous
District Councils which no longer find mention in the Notification of 2011.
These functions are:
“11. Forest Department: All the projects taken by Forest Department within
the Council areas can be handed over to the District Council concerned including
all the assets and liabilities, if any. National Park at Phawngpui and sanctuary
at Ngengpui under centrally sponsored schemes will be looked after by the
Forest Department, Government of Mizoram.
16. Education Department

1) Primary School: As for Primary School, it is decided that from 1994-95
onwards, the budget provision will be reflected in the District Council
budget and Education Department will no longer include the same in
the State budget.
2) Adult Education will be handed over to District Council.
~ 153 ~
__________________________________________________________________________________
3) Middle School: Handing over of Middle School to District Council is

agreed. However, examination will be continued under the Examination
Board of the State.”
5.152 Concerning the two Departments and their functions, District Council and
Minority Affairs Department asserts that the aforesaid Government
Notification of 2011 was issued on the basis of the recommendation of the
Standing Inquiry Commission for the three Autonomous District Councils
headed by Pu T. Gupta, IAS (Rtd). The functions under Environment, Forest
and Climate Change Department and School Education Department are no
longer included for entrustment to the ADCs in the aforesaid Government
Notification since the functions under these Departments had been fully
transferred/entrusted to the ADCs on the basis of the previous Government
Notification No.B.17012/3/92-DCA dt. 22.09.1993 published in the Mizoram
Gazette issue No. 198 dt. 27.09.1993.
5.153 The Commission observes that even after a decade, the delegation of functions
to the Autonomous District Council has not fully materialised on the ground
due, among other things, to the existence of dual parallel departments within
the district, namely, departments under the ADCs and the Government of
Mizoram. Furthermore, delegating functions without additional budgetary
support from the State Government renders the ADCs incapable of carrying
them out because their own source revenues are quite limited. In other words,
the ADCs have been entrusted with a number of functions without
accompanying devolution of finances and functionaries (perhaps with the
exception of functionaries under the School Education Department), resulting
in duplication with the State Departments. Devolution has not taken shape
because, despite the instructions contained in the 2011 Notification, the
majority of functional activities in the ADC areas are still performed by State
Departmental offices. The Commission, therefore, recommends that the
Government Notification of 29th August, 2011 entrusting functions to
the three Autonomous District Councils be implemented in letter and
spirit in the best interest of the Councils as also to fulfil the spirit of
decentralised governance. The Administrative Departments should
ensure that the entrusted functions are not undertaken by their
respective offices in the Sixth Schedule areas to eliminate duplicity of
functions. The Chief Secretary should review the implementation of the
Government Notification with the administrative heads of the concerned
Departments at least half yearly so that the entrustment of functions
can fully materialise at the ground level sooner than later.
Functions performed by the Autonomous District Councils
5.154 On the basis of the powers devolved upon them by the Constitution and the
functions entrusted to the ADCs by the State Government through separate
notifications, the District Councils perform several critical functions and are
~ 154 ~
__________________________________________________________________________________
indeed a miniature government within their respective territorial jurisdictions.

Several Departments are created by the respective ADCs to executive specific
functions. A summary of the functions performed by the three ADCs is
presented below.
a) Maintenance of the District Fund established under paragraph 7 of the

Sixth Schedule of the Constitution. Preparation of annual budget
including supplementary demands and subsequent sanction of
expenditure is an important function of the ADCs.
b) Levy and collection of own tax revenues such as professions tax, land
revenue, trade license, entry tax on vehicles, entry tax on goods, animal
tax, etc. and own-non tax revenues such as rents from District Council
properties, collections from forest and mineral resources, fees from
educational services, fees from administrative services, etc.
c) Control and management of land administration is one of the most

important functions of the ADCs. The Councils issue land documents
such as land settlement certificates, agriculture land settlement
certificates, periodic patta, house site pass, shop pass, etc. and collect
revenue from such land as per appropriate rates fixed by the Councils
themselves. They further control trading within their respective
jurisdiction by issuing trade licenses and collects professions tax from
employees of the Central, State and District Council employees.
d) Administration of the Village Councils is another critical function of the

ADCs since the VCs are created by the ADCs themselves. Naming of
streets, roads and villages also lies within the domain of the ADCs. They
construct public urinals, masonry step, culverts, bridges, public water
point, bazar shed, etc. and maintenance of civic amenities and
management of solid waste also falls under the District Councils.
e) Provision of drinking water supply, rainwater harvesting, construction

and maintenance of water tanks.
f) Management and control of primary schools and middle schools. The

ADCs control and manage academic programmes, syllabus and academic
calendars of schools within their respective jurisdiction.
g) Promotion of agriculture through construction of approach roads to

potential areas, supply of high yielding varieties of seeds, provision of
financial assistance to paddy field owners, distribution of fertilizers, plant
protection chemicals and agricultural tools to deserving farmers along
with several steps for substitution of shifting cultivation.
~ 155 ~
__________________________________________________________________________________
h) Promotion of sericulture through development and maintenance of

sericulture farm, construction of cocoon cages, development of silkworm
rearing and imparting skills to prospective individuals on sericulture.
i) Development of rural areas such as maintenance of inter village roads,

construction of community halls, village jeepable approach roads,
community wells, public latrines including rural housing schemes.
j) Development of small scale industrial activities by giving specialised

training in weaving, tailoring, shoemaking, etc.
k) Development of animal husbandry encompassing piggery, poultry, cow

and buffalo breeding, distribution of medicines and vaccines for the
protection of animals from multiple diseases free of cost.
l) The ADCs also undertake social welfare programmes such as financial

assistance to old aged, physically handicapped, widows, orphans and
orphanage homes including various forms of assistance to civil societies.
m) Publicity of significant events to the general public and promotion of

important schemes, etc. through advertisements as also publication of
journals.
n) Promotion of the cooperative sector by organising cooperative societies,

supervising them and undertaking inspection and audit at regular
intervals. Societies are largely based on handloom and handicraft, fishery,
piggery, primary marketing, shoe making, etc.
o) The ADCs are also responsible for managing and controlling forests within
their jurisdiction, protecting and preserving wild life, flora and fauna,
forest products, and creating an environmental friendly atmosphere.
p) Control of river bed erosion, measures for prevention of landslides,

construction of dams, diversion drainage, construction of retaining walls,
etc. are undertaken by the Councils for the purpose of soil and water
conservation.
q) Promotion and development of various sporting activities especially

amongst the youth, creation of sports infrastructures such as
playgrounds, campaign against drug abuse with a view to boost the
physical and emotional well-being of the community.
r) Promotion of traditional music, fine arts, cultural programmes, research

works and cultural dances. Preservation of ancient monuments and
collection of cultural dress/materials to display objects having scientific,
~ 156 ~
__________________________________________________________________________________
historical and artistic value. Financial assistances are also given to

deserving cultural clubs.
s) Promotion of fisheries is also undertaken by the District Councils with the

limited funds available to them.
t) The ADCs also construct and maintain roads as entrusted to them by the
State Government. They also construct and maintain their Council
buildings too.
u) Maintenance of the fleet of vehicles for running the administration of the

Councils is undertaken by the ADCs including arrangements for parking
of vehicles. Tolls are collected from commercial vehicles which enter into
their area.
Devolution of funds to the Autonomous District Councils
5.155 Devolution of funds from the State Government is unsurprisingly the biggest
source of revenue for the Autonomous District Councils in Mizoram, with the
aggregate own source revenues of the ADCs hovering below 1.5% of the total
revenue receipts during the last 10 years or so. The 1st State Finance
Commission recommended an exceedingly large pie in the share of taxes i.e.,
58.33% horizontal share for the ADCs within the 15% vertical devolution to
local bodies from the State’s Own Tax Revenue. In the second stage of
horizontal devolution, the inter se share of the respective Autonomous District
Councils from the aggregate share of the ADCs is determined on the basis of
certain criteria recommended by the 1st SFC consisting of population (Census
2011), area, distance from ADC headquarters to the State capital, literacy and
village electrified. On the basis of the aforesaid criteria, the percentage share
of an individual ADC is calculated as LADC – 41.97%, CADC – 23.96% and
MADC – 34.07%. It may be reiterated that tax devolution from the State
Government is essentially the share of the ADCs from the net proceeds of
taxes, duties, tolls and fees leviable by the State Government i.e., the State’s
Own Tax Revenue in line with the provisions in section 3(1)(a)(i) of the Mizoram
Finance Commission Act, 2010 to enable the ADCs to perform the functions
assigned to them.
5.156 According to the deficit financing mechanism recommended by the 1 st SFC,

grants-in-aid from the State Government is to be provided if only there is still
a deficit between the projected non-plan expenditure requirements of the
ADCs minus the combination of the own revenue receipts of the ADC, share
of tax devolution and grants from the 14th Finance Commission. A substantial
amount of grants-in-aid has to be devolved by the State Government since the
14th Finance Commission did not recommend grants for the ADCs unlike the
urban local bodies.
~ 157 ~
__________________________________________________________________________________
5.157 Tables 5.21, 5.22 and 5.23 show a comparison of the recommendations of the
1st SFC and the actual devolution of funds from the State Government to
Chakma Autonomous District Council, Lai Autonomous District Council and
Mara Autonomous District Council respectively during the five years of the 1st
State Finance Commission (i.e., 2015-16 to 2019-20). The 1st SFC makes an
assessment of the non-plan expenditure requirements of the ADC for all the
five years during its award period alongside the projections of own source
revenues for each of the ADC. The transfers from the State Government to an
ADC is recommended in the form of share of taxes (tax devolution) and grants-
in-aid following the Terms of Reference as prescribed in the Mizoram Finance
Commission Act, 2010. The State Government devolves funds to an ADC in
the form of (a) grants-in-aid for salary, (b) grant-in-aid for non-salary, and (c)
other grants (consisting of grants for creation of capital assets, funding from
Centrally Sponsored Schemes, etc.)
5.158 Table 5.21 shows that the actual transfers from the State Government to the
CADC, as shown in the row at Sl. 10, exceed the projected transfers from the
State Government, as shown in the row at Sl. 5, while the actual own revenue
receipts fall short of the projected own revenue receipts across all years.
Grants-in-aid for salary have consistently contributed the majority of State
Government fund transfers, and as rising salary expenditure falls within
committed expenditure, there is a possibility that salary expenditure will
consume almost all State transfers in the near future. Grants-in-aid for non-
salary forms a comparatively smaller proportion across the years. Tables 5.22
and 5.23 present the cases of LADC and MADC, respectively which are on
similar lines with that of the CADC.
~ 158 ~
__________________________________________________________________________________
Table 5.21 Devolution of funds from the State Government to CADC

(₹ in lakh)
Sl. 2015-
Items 2015-16 2016-17 2017-18 2018-19 2019-20
No. 2020
Projected
non-plan
1 4168.88 4794.25 5514.49 6340.39 7246.41 28064.42
expenditure
(1st SFC)
Projected own
revenue
2 116.21 127.84 140.59 168.67 204.88 758.19
receipts
(1st SFC)
Projected
3 share in State 615.5 708.43 815.37 938.49 1080.18 4157.97
taxes (1 SFC)
st
Projected
grants-in-aid
by State
4 3437.17 3957.98 4558.53 5233.23 5961.35 23148.26
Government
(1st SFC)
(1-2-3)
Projected total
5 State transfers 4052.67 4666.41 5373.9 6171.72 7041.53 27306.23
(3+4)
Actual own
6 revenue 84.88 103.06 102.79 86.96 114.61 492.30
receipts
Actual grants-
7 5521.09 6077.55 6909.15 9125.44 10360.03 37993.26
in-aid salary
Actual grants-
8 in-aid non- 670.00 553.69 1628.84 622.56 1057.31 4532.40
salary
Actual other
9 114.11 39.00 255.60 346.56 37.48 792.75
grants
Actual total
10 State transfers 6305.20 6670.24 8793.59 10094.56 11454.82 43318.41
(7+8+9)
Difference
between
actuals and
11 2252.53 2003.83 3419.69 3922.84 4413.29 16012.18
projections in
State transfers
(10-5)
Difference
between
actuals and
12 -31.33 -24.78 -37.80 -81.71 -90.27 -265.89
projections in
own revenue
receipts(6-2)
Source: 1st SFC Report and budget documents
~ 159 ~
__________________________________________________________________________________
Table 5.22 Devolution of funds from the State Government to LADC

(₹ in lakh)
Sl. 2015-
Items 2015-16 2016-17 2017-18 2018-19 2019-20
No. 2020
Projected non-
plan
1 7817.66 8839.43 9994.74 11301.05 12778.1 50730.98
expenditure
(1st SFC)
Projected own
revenue
2 150.59 182.92 222.19 269.9 327.84 1153.44
receipts
(1st SFC)
Projected share
3 in State taxes 1078.15 1240.93 1428.25 1643.92 1892.12 7283.37
(1 SFC)
st
Projected
grants-in-aid
by State
4 6588.92 7415.58 8344.3 9387.23 10558.14 42294.17
Government
(1st SFC)
(1-2-3)
Projected total
5 State transfers 7667.07 8656.51 9772.55 11031.15 12450.26 49577.54
(3+4)
Actual own
6 revenue 140.63 152.32 195.02 197.84 246.57 932.38
receipts
Actual grants-
7 9685.28 10936.67 12336.90 15594.92 17581.20 66134.97
in-aid salary
Actual grants-
8 in-aid non- 1263.25 888.50 1428.66 1062.50 1228.50 5871.41
salary
Actual other
9 333.99 293.00 1360.54 469.76 18.84 2476.13
grants
Actual total
10 State transfers 11282.52 12118.17 15126.10 17127.18 18828.54 74482.51
(7+8+9)
Difference
between
actuals and
11 3615.45 3461.66 5353.55 6096.03 6378.28 24904.97
projections in
State transfers
(10-5)
Difference
between
actuals and
12 -9.96 -30.60 -27.17 -72.06 -81.27 -221.06
projections in
own revenue
receipts(6-2)
~ 160 ~
__________________________________________________________________________________
Table 5.23 Devolution of funds from the State Government to MADC

(₹ in lakh)
Sl. 2015-
Items 2015-16 2016-17 2017-18 2018-19 2019-20
No 2020
Projected
1 non-plan 7270.4 8507.34 9744.27 10981.21 12218.15 48721.37
expenditure
(1st SFC)
Projected own
2 revenue 141.89 180.75 284.83 322.31 410.33 1340.11
receipts
(1st SFC)
Projected share
3 in State taxes 875.21 1007.35 1159.41 1334.48 1535.97 5912.42
(1st SFC)
Projected
grants-in-aid
4 by State 6253.3 7319.24 8300.03 9324.42 10271.85 41468.84
Government
(1st SFC)
(1-2-3)
Projected total
5 State transfers 7128.51 8326.59 9459.44 10658.9 11807.82 47381.26
(3+4)
Actual own
6 revenue 106.69 102.46 131.57 153.45 167.39 661.56
receipts
7 Actual grants- 8830.17 10310.29 10995.14 13721.44 15145.99 59003.03

in-aid salary
Actual grants-
8 in-aid non- 396.00 856.70 1594.21 911.90 996.63 4755.44
salary
Actual other
9 241.11 145.79 439.60 533.51 27.14 1387.15
grants
Actual total
10 State transfers 9467.28 11312.78 13028.95 15166.85 16169.76 65145.62
(7+8+9)
Difference
between
actuals and
11 7128.51 8326.59 9459.44 10658.90 11807.82 47381.26
projections in
State transfers
(10-5)
Difference
between
actuals and
12 -35.20 -78.29 -153.26 -168.86 -242.94 -678.55
projections in
own revenue
receipts(6-2)
~ 161 ~
__________________________________________________________________________________
Devolution of functionaries to the Autonomous District Councils
5.159 The strength of officers and staff employed on regular basis and the
approximate expenditure on their salaries across the three Autonomous
District Councils are presented in Tables 5.24, 5.25 and 5.26 below. The
Tables at 5.27, 5.28 and 5.29 also show the number of persons engaged either
on Muster Roll or on Contract basis along with the approximate expenditure
on their wages/remuneration.
5.160 There are indeed a multitude of different types of posts sanctioned under the
ADCs, the prominent ones being the posts of Executive Secretary, Court
President & Recorder, Conservator of Forest, Local Administration Officer,
Revenue & Settlement Officer, Executive Engineer, Rural Development Officer,
Agriculture Extension Officer, Information & Publicity Officer, Veterinary
Officer, Accounts Officer, Teachers, Assistant, UDC, Computer Operator, LDC,
Divers, Forest Guard, Peon/Chowkidar/Sweeper, so on and so forth.
5.161 The ADCs recruit their staff through their Selection Committees without
reference to the Mizoram Public Service Commission or the Mizoram
Subordinate Services Selection Board after obtaining approval of the
respective Executive Committee in respect of Group B posts and below while
the expressed approval of the Governor is required for recruitment of Group A
officers.
5.162 A cursory glance at the Tables below shows that the strength of the officers
and staff in the Councils are quite high, i.e., the existing strength in the CADC,
LADC and MADC for the year 2020-21 being 922, 2038 and 1689 respectively
which add up to a massive 4649 across the District Councils. Comparing the
strength of officers and staff for the year 2020-21 with the population figures
(Census 2011), we can see that the ratio of the population of the ADCs to that
of the staff strength translates into 49.14, 35.62 and 33.50 for the CADC,
LADC and MADC respectively. This implies that there is one District Council
employee for approximately every 49 persons in the CADC. Similarly, there is
one District Council employee for every 35 persons in the LADC and in the
case of the MADC, the figure comes to approximately 33.
~ 162 ~
__________________________________________________________________________________
Table 5.24 Strength of regular employees in Chakma Autonomous District

Council
No. of sanctioned posts Salary
Filled
Year Vacant (₹ in
A B C D Total up
lakh)
2015-16 130 861 877 832 2700 894 1813 4188.39
2016-17 151 810 821 1086 2868 851 2017 4888.55
2017-18 121 592 655 678 2046 565 1439 5223.99
2018-19 188 980 753 1056 2977 797 2180 6359.35
2019-20 142 1017 900 620 2679 1079 1641 7924.06
2020-21 162 956 656 342 2116 922 1194 7698.5

Source: Chakma Autonomous District Council
Table 5.25 Strength of regular employees in Lai Autonomous District Council

No. of sanctioned posts Salary
Filled
Year Vacant (₹ in
A B C D Total up
lakh)
2015-16 298 531 367 259 1445 1445 Nil 7830.00
2016-17 184 902 479 341 1916 1916 Nil 9705.97
2017-18 187 908 505 351 1950 1950 Nil 10807.90
2018-19 195 919 266 609 1989 1989 Nil 11642.02
2019-20 145 882 380 603 2010 2010 Nil 15075.40
2020-21 138 1074 351 475 2038 2038 Nil 15454.91

Source: Lai Autonomous District Council
Table 5.26 Strength of regular employees in Mara Autonomous District

Council
No. of sanctioned posts Filled Salary (₹
Year Vacant
A B C D Total up in lakh)
2015-16 262 1488 663 406 2819 1530 1289 8063.06
2016-17 247 1451 659 403 2760 1594 1166 9309.12
2017-18 257 1494 659 403 2813 1583 1230 9956.86
2018-19 246 1611 659 403 2919 1723 1196 12513.80
2019-20 256 1509 658 403 2826 1645 1181 13101.43
2020-21 245 1509 662 403 2819 1689 1130 13294.24

Source: Mara Autonomous District Council
~ 163 ~
__________________________________________________________________________________
Table 5.27 Engagement of Muster Roll/Contract employees under Chakma

Year No. of persons engaged Expenditure (₹ in lakh)
2015-16 691 658.98
2016-17 744 679.59
2017-18 626 1039.17
2018-19 681 998.57
2019-20 480 868.36
2020-21 392 653.06
Table 5.28 Engagement of Muster Roll/Contract employees under Lai

2015-16 Nil 0.00
2016-17 26 30.00
2017-18 26 44.40
2018-19 53 91.896
2019-20 56 96.144
2020-21 36 65.904
Table 5.29 Engagement of Muster Roll/Contract employees under Mara

2015-16 162 185.11
2016-17 191 225.91
2017-18 195 239.32
2018-19 121 189.55
2019-20 146 326.68
2020-21 160 318.60
5.163 The number of Muster Roll or Contract engagements are quite high in the
Chakma Autonomous District Council across the years while the figures for
the same is NIL in the case of the Lai Autonomous District Council. The figures
in the case of the Mara Autonomous District Council also stand at more than
120 across the 6 years under consideration. Engagement of employees on
~ 164 ~
__________________________________________________________________________________
Muster Roll or Contract basis may also be done judiciously considering the
actual functional requirements since these employees eventually claim for
regular appointment/regularisation in the long run which increases the
burden upon the District Council’s exchequer.
5.164 Because of the large number of employees in the District Councils, grants-in-
aid for salary have consistently constituted more than 90% of State fund
transfers across the three ADCs since the fiscal year 2018-19. The rapidly
increasing expenditures on salaries and allowances, pensions, etc. in the
District Councils indicate the growing burden of committed expenditures. The
District Councils' ability to fund even their mandated activities for the socio-
economic advancement of the populace is being hampered by rising
committed expenditures. In other words, the District Councils have very
limited, nay, no fiscal space for undertaking development activities owing to
their rising committed expenditure especially on salaries unless specific
grants are received either from the Central Government or the State
Government.
5.165 The District Councils are understood to require a certain level of officers and
staff to discharge the various powers delegated to the ADCs under the Sixth
Schedule and to do justice to the multiple functions entrusted to the ADCs by
the State Government via separate Government Notifications. The ADCs
cannot function solely on the elected members of District Councils. However,
the Commission believes that it is prudent for the three ADCs to
proactively limit recruitment of new officers and staff unless there is an
overriding consideration, and that such recruitment should be limited to
purely technical or specialised posts that cannot be discharged by the
existing officers and staff. Recruitment of lower-level staff whose
functions appear to be dispensable for the Councils, such as
Peon/Chowkidar/Sweeper, LDC, UDC, Drivers, and so on, may be
prohibited for at least the next five years.
5.166 With a view to rationalise the expanding salary expenditure, each ADC
may form a Study Group with specific terms of reference as shown below
and act upon the findings and recommendations of the Study Group
expeditiously:
a) to critically assess the availability of manpower in various

departments vis-à-vis the functions discharged;
b) to identify redundant or surplus staff in certain departments and
suggest measures for re-deployment of such surplus staff to other
departments on the basis of functional requirements;
c) to identify certain Group ‘C’ and Group ‘D’ posts suitable for
outsourcing to manpower agencies;
d) to identify redundant posts that can either be abolished or be
declared as withering posts;
~ 165 ~
__________________________________________________________________________________
e) to identify technical or specialised posts that need to be filled up in

the next three to five years whose services are of utmost
importance, limiting such proposals for recruitment to not more
than 15-20 in a financial year.
~ 166 ~
CHAPTER SIX
FINANCES OF RURAL LOCAL BODIES
6.1 The finances of the Village Councils (VCs), the rural local bodies in the context
of Mizoram, are largely determined by the amount of funds devolved from the
higher governments, viz., Central and State Government, since they have
limited revenue-raising powers. Given the limited expenditure obligations and
revenue-raising power, the majority of funding for Village Councils comes from
intergovernmental fiscal transfers. As a result, they rely almost entirely on
transfers made by the State and Central Governments.
Trends in devolution of funds to Village Councils
6.2 The pattern of revenue receipts of the VCs has changed with the emergence of
new fiscal regimes recommended by various Union Finance Commissions, the
13th, 14th, and 15th Finance Commissions, as well as the implementation of
the recommendations of the 1st State Finance Commission (SFC) of Mizoram.
Meanwhile, the State Government has provided grants-in-aid (GIA) for the
remuneration of VC members (GIA-Salary) and other miscellaneous expenses
(GIA Non-Salary), mostly for the maintenance of street lights, water points,
and so on. However, GIA transfers are often less than 10% of total revenue
receipt (TRR) of the State in most years, with the exception of the 1 st SFC
period. Table 6.1 shows the trends in fund devolutions to VCs from the Central
government as recommended by the Union FCs, the State government's own
revenue, and the total revenue receipt (TRR).
6.3 The period of the 13th Finance Commission, i.e., 2010-11 to 2014-15, shows
a consistent and substantial amount of transfers received from the Central
Government, accounting for more than 90% of total revenue transfers to VCs
from the Central and State Governments, while own revenue of the VCs
contributed less than 0.5% of total revenue receipts during this period. During
these five years, the Central Government devolved a total of ₹8,787.19 lakh.
In comparison, the State Government only provided ₹869.53 lakh. At the same
time, Central devolution in Table 6.1 also includes all other fund transfers
received by the VCs from the Central government, other than FC-XIII
transfers, for the implementation of development works such as CSS, grants,
etc. Thus, the pattern shows the dominant role played by Central devolution
on the financial positions of the VCs in Mizoram during the FC-XIII award
period, i.e., 2010–11 to 2014–15.
~ 167 ~
__________________________________________________________________________________
Table 6.1 Trends in devolution of funds to Village Councils

(₹ in lakh)
Own Tax Central State Government Total
Revenue Devolution Tax Revenue
Years Grants- Total
(Animal (13th/14th Devolu- Receipt
in-Aid (4+5)
Tax) /15th FC) tion (2+3+6)
1 2 3 4 5 6 7
2010-11 6.20 1,971.96 151.67 151.67 2,129.83
2011-12 3.28 1,188.00 124.41 124.41 1,315.69
2012-13 4.14 1,188.00 145.42 145.42 1,337.56
2013-14 4.92 3,102.71 198.14 198.14 3,305.77
2014-15 11.80 1,336.52 249.89 249.89 1,598.21
2015-16 7.88 258.09 258.09 265.97
2016-17 4.66 267.22 1,092.00 1,359.22 1,363.88
2017-18 10.22 4,544.00* 266.92 1,861.01 2,127.93 6,682.15
2018-19 3.81 2,154.04 2,154.04 2,157.85
2019-20 6.32 2,073.47 552.67 2,626.14 2,632.46
2020-21 8.51 9,300.00 336.12 336.12 9,644.63
2021-22 4.40 7,344.29 1,626.90 1,626.90 8,975.59

Source: Budget documents and Local Administration Department/*This is outside the rural
local body grants of 14th FC but grants-in-aid released by the Ministry of Finance,
Government of India to “Excluded Areas” i.e. areas not covered by Parts IX and IX-A of the
Constitution
6.4 It should be noted that the 13th FC established two grant components, namely
basic grants and performance grants, for both general and special category
states. A basic grant of ₹798 crore was allocated for 16 Special Category States
based on the ₹20 per capita per year criteria for the duration of 13th FC’s
period, while ₹559 crores was allocated as performance grants for these States
based on ₹10 per capita criteria in 2010-11 and ₹20 per capita after that.
During this period, the share of Mizoram in the total allocation for all Special
Category States was approximately 1.13% for each basic grant and
performance grant, totaling ₹900.00 lakh and ₹630.00 lakh, respectively. For
the works to be carried out under these grants, the 13th FC prioritised
sanitation, drinking water, and health.
6.5 With the start of the FC-XIV award period, the Central Government's fund
devolution fell precipitously (2015-16 to 2019-20). The amount of Central
transfers to VCs has decreased dramatically from ₹8,787.19 lakh in 13th FC
to ₹4,544.00 lakh in 14th FC. This is because, unlike the previous Finance
Commissions, the 14th FC did not recommend devolution to rural local bodies
~ 168 ~
Chapter 6 : Finances of rural local bodies
__________________________________________________________________________________
in the areas excluded from Part IX & IXA of the Constitution (called Excluded
Areas), but instead urge the Union Government to consider a larger, sustained
and more effective direct intervention for the upgradation of administration as
well as development of the areas covered under the proviso to article 275(1)
and excluded from the consideration of Finance Commissions in the terms of
reference, in order to bring such areas on par with other areas. Subsequent
to the above suggestion, the Central Government in Ministry of Finance
allocated one-time grants amounting to ₹4544.00 lakh for the excluded areas,
which were realised in 2017-18. The shortfall in Central transfers during the
period of the 14th FC was well covered by a sharp increase in State devolution
during this period, from ₹869.53 lakh to ₹9,394.95 lakh, following the
implementation of the 1st State Finance Commission’s recommendation from
2015-16 to 2019-20, and the introduction of the New Economic Development
Policy (NEDP) in 2016-17. Thus, the share of Central transfers fell from 90.7%
during the FC-XIII period to 34.7% during the FC-XIV period, offset by an
increase in the share of State transfers from 8.9% to 71.7% during the
corresponding period. State transfers to VCs take the form of GIA and tax
devolution, which appear to be complementary in that a decrease in one head
is accompanied by an increase in the other to make up the shortfall, and vice
versa. In addition to SFC grants, the State Government allocated grants to
VCs through LAD amounting to ₹2,000.00 lakh for village infrastructure
development in 2016-17, significantly increasing the actual GIA fund received
in the year 2019-20.
6.6 With the arrival of the 15th Finance Commission (FC-XV) award period since
2020-21, the dimension of devolution to VCs has changed dramatically, with
a significant increase in the amount of Central transfers as recommended by
FC-XV accounting for nearly 90% of total devolution. The Central transfers
increased to ₹9,300.00 lakh in 2020-21 and ₹7,344.29 lakh in 2021-22,
implying that the transfers received in the first two years exceeded the total
Central transfers received in the previous ten years, i.e., FC-XIII & XIV award
periods, by more than ₹3,000.00 lakh.
6.7 Similarly, total devolution (State and Central) deviated from the previous
trend, rising from ₹2,626.14 lakh in 2019-20 to ₹9,636.12 lakh in 2020-21
and ₹8,971.19 lakh in 2021-22. As a result of new Finance Commissions at
the Centre and the State, the pattern of fund transfers to VCs changed.
Regular Central fund transfers to VCs were halted during the FC-XIV period
in favour of one-time grants, but the reduction was offset by a significant
increase in State devolution following the implementation of the 1 st SFC
recommendation. When the 1st SFC award period ended in 2020-21, with GIA
reduced to ₹336.12 lakh, the FC-XV began with a significant increase in
Central devolution, resulting in an increase in total revenue receipts.
~ 169 ~
__________________________________________________________________________________
Table 6.2 Central and State fund devolutions to Village Councils-District wise
(₹ in lakh)
2016- 2018- 2019- 2020- 2021-
2017-18
District 17 19 20 21 22
State State Central Total State State Central Central
Aizawl 279.25 231.84 786.78 1018.62 230.20 816.83 713.00
1st SFC Devolution: ₹552.667 & State GIA (Salary & Non-
Lunglei 174.40 346.95 1170.31 1517.26 468.87 1652.55 1032.06
Champhai 136.70 272.73 902.30 1175.03 364.70 879.57 619.79
Kolasib 89.35 178.40 582.52 760.92 178.92 997.89 668.45
Serchhip 69.84 139.52 459.98 599.50 184.90 720.62 539.19
Salary): ₹2073.47
Mamit 93.60 187.07 642.11 829.18 185.30 911.40 744.44
Saitual 0.00 0.00 0.00 0.00 0.00 567.30 449.11
Khawzawl 0.00 0.00 0.00 0.00 0.00 417.45 297.70
Hnathial 0.00 0.00 0.00 0.00 0.00 401.99 252.01
Lawngtlai 168.05 324.32 0.00 324.32 360.87 1208.07 1110.82
LADC 85.22 182.50 0.00 182.50 225.37 748.76 697.51
CADC 82.83 141.82 - 141.82 135.50 459.31 413.31

Siaha
81.70 180.18 - 180.18 180.28 726.33 917.72
(MADC)
Total 1092.89 1861.01 4544.00 6405.01 2154.04 2632.46 9300.00 7344.29
Source: Budget documents and Local Administration Department
6.8 Table 6.2 presents the devolutions of the Central and State funds to the VCs
district-wise in the 11 districts of the State during the periods from 2015-16
to 2019-20 (1st SFC and FC-XIV) and 2020-21 onward (FC-XV). As already
noted, 14th FC does not recommend normal RLB grants to the areas excluded
from Part IX and IXA of the Constitution, such as areas under the Sixth
Schedule, the hill districts of Manipur, and rural areas of Mizoram and
Nagaland. Meanwhile, the State Government of Mizoram implemented the
recommendations of the 1st SFC for the devolution of funds to the VCs and
other local bodies with an established distribution formula in which
population and geographical area get major weightage. Further, though the
1st SFC award period began in 2015-16, actual State fund devolution as
recommended by the Commission started only in financial year 2016–17, and
thus, the table presents devolution starting from this year.
6.9 It is observed from Table 6.2 that Aizawl district got the largest allocation
(25.6%) in the year 2016-17, followed by Lunglei (16%), while Siaha district
received the lowest (8.3%), but the pattern changed from the next year in
which Lunglei district received the maximum share. No separate data was
presented for the three newly established districts, namely Saitual, Khawzawl
~ 170 ~
__________________________________________________________________________________
and Hnahthial, as they were only established in the year 2019. As per the
horizontal devolution formula of the 1st SFC, the share allotted to Lunglei
district stands at 22.27%, followed by Champhai district at 16.42%. At the
same time, the share of Central transfers (excluded area grants) given by the
State Government to Lunglei district in the year 2017-18 was highest at
25.8%, followed by Champhai district (19.9%) and Aizawl district (17.3%),
while it was lowest in Serchhhip (10.1%). Though the 1st SFC formula was not
followed strictly, the distribution pattern among the districts resembles this
formula to a great extent.
6.10 With the start of the 15th FC era and the end of the 1st SFC, Central transfers
have become the catalyst for the State's funding source for the finances of the
VCs. A substantial amount was received in the first two years of the FC-XV
award period and was distributed among the 11 districts based on population
and geographical areas, which the 1st SFC gave 70% weightage (population
40% and geographical area 30%). Of the 11 districts, transfers to the VCs in
Lunglei district were the highest at 14.2%, followed by Lawngtlai (12.23%),
which included LADC and CADC, while the transfers to Serchhip district were
the lowest at 6.6%.
Own source revenues of village councils
6.11 It is well understood that the own source revenues of the village councils are
indeed minimal, with animal tax as the only own tax revenue source. The own
non-tax revenue sources have hardly been properly documented in order to
make a meaningful analysis. The Commission did make an attempt to
understand the generation of own source revenues, both tax and non-tax, by
circulating a questionnaire to all the village councils through the respective
Deputy Commissioners of the districts in the general areas and the Executive
Secretaries of district council in the Sixth Schedule areas. The questionnaire
asks the village councils to share the receipts of own tax revenue i.e., animal
tax since the year 2015-16 up to the year 2020-21. Table 6.3 highlights the
receipts of own tax revenue district-wise for the years under consideration.
~ 171 ~
__________________________________________________________________________________
Table 6.3 Trends in own tax revenues of village councils

(₹ in lakh)
Name of District 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
1 2 3 4 5 6 7
Aizawl 0.66 0.72 0.87 0.92 1.07 2.04
Lunglei 0.39 0.43 0.45 0.42 0.54 1.15
Champhai 0.53 0.69 0.61 0.63 0.74 1.15
Kolasib 0.63 0.70 1.58 1.65 1.05 1.88
Mamit 0.42 0.40 0.47 0.54 0.92 0.98
Serchhip 0.68 0.70 0.79 0.82 0.91 1.81
Khawzawl 0.46 0.47 0.45 0.55 0.71 0.88
Saitual 0.56 0.56 0.67 0.72 0.77 1.09
Hnahthial 0.09 0.09 0.11 0.14 0.32 0.42
LADC 0.01 0.01 0.03 0.03 0.04 0.08
MADC 0.15 0.16 0.18 1.74 1.85 1.86
CADC - - - - - -
Grand Total 4.57 4.93 6.21 8.17 8.91 13.34

Source: Questionnaire to village councils
6.12 It must, however, be noted that there are no third party sources to validate
the data furnished by the VCs. Assuming that the table shows atleast the
trends in receipts of own tax revenue, it compounds annually at the rate of
23.6% during the six years from the starting year of the 1st SFC.
6.13 Coming to the non-tax revenue, the questionnaire reveals that there are
indeed several non-tax revenue sources which are tapped by the village
councils in varying levels across the State, be it the general areas or the areas
under the district councils. Some of the common sources of non-tax revenues
may be listed as follows:
i) Fees/contributions for collection and disposal of solid waste;

ii) User charges from assets created under Central/State Schemes such
as water reservoir, market shed, water supply, irrigation canal, etc.;
iii) Registration fee of animals;
iv) Fines due to contravention of Mizoram Animal (Control & Taxation)
Act, 2014;
v) Fines for absence from Hnatlang;
vi) Contribution against absence from Hnatlang;
vii) Fines for persons failing to cultivate land after selection of jhum land;
viii) Funds raised for public utility within its jurisdiction by passing a
resolution subject to the approval of the State Government;
~ 172 ~
__________________________________________________________________________________
ix) Fines imposed by Village Courts;

x) Fees for organising assembly or meetings for the sake of
entertainment, exhibition or fair;
xi) Fees for issuing of VC recommendation for availing Govt services
such as Residential Certificate, Income Certificate, etc.;
xii) Rents from VC buildings or any other properties;
xiii) Contributions for remuneration of Village Crier.
6.14 The table below shows the receipts of own non-tax revenues by village councils
district wise across the State during the six years under consideration.
Table 6.4 Trends in own non-tax revenues of village councils

(₹ in lakh)
Name of
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
District
1 2 3 4 5 6 7
Aizawl 52.54 53.39 58.28 59.26 63.96 74.09
Lunglei 3.98 4.02 16.62 6.46 13.42 70.51
Champhai 6.68 7.08 10.76 22.72 15.88 34.42
Kolasib 16.90 15.01 26.81 19.47 50.41 49.40
Mamit 7.19 7.79 9.82 12.69 31.36 33.04
Serchhip 37.71 39.46 41.91 45.17 54.71 89.24
Khawzawl 11.23 12.36 13.17 14.85 20.90 32.61
Saitual 11.64 12.04 13.11 16.01 23.13 40.52
Hnahthial 3.71 4.06 5.40 4.99 14.27 33.06
LADC 3.85 4.38 5.44 7.13 23.45 25.23
MADC 45.39 27.76 31.20 48.28 59.92 84.20
CADC - - - - - -
Grand
200.82 187.34 232.52 257.02 371.41 566.30
Total
Source: Questionnaire to village councils
6.15 It may be reiterated that there are no third party sources to validate the data
furnished by the VCs. However, assuming that the table shows atleast the
trends in receipts of own non-tax revenue, the receipts grow annually at the
rate of 23.3% during the six year period under consideration. It is quite
surprising that the village councils under CADC report zero receipts for both
tax and non-tax revenue sources, which further corroborate the need to
enhance generation of own revenue receipts by village councils.
~ 173 ~
__________________________________________________________________________________
Implementation of the recommendations of Union and State Finance

Commissions
6.16 According to Chart 6.1, the 1st SFC projected a total of ₹7,190.83 lakh to be
devolved to VCs during its award period, which runs from 2015-16 to 2019-
20. At the same time, the actual fund devolution stands at ₹6,123.29 lakh,
representing a 14.8% shortfall of ₹1,607.54 lakh. The shortfall is primarily
due to the State Government's failure to implement the SFC's
recommendations in the first year (2015-16). This is perhaps due to the time
required for administrative settlement, as it was the first of its kind in the
history of the State finance. Despite this, actual devolution was significantly
higher than projected in 2017-18 (20.2%) and 2019-20 (12.3%), with negligible
deviation in 2018-19. Thus, given the time required for administrative and
accounting settlement to facilitate such a new fiscal regime, the State
Government's success rate in devolving funds to VCs can be inferred to be
reasonably acceptable.
Chart 6.1 Devolution to Village Councils as per 1st SFC recommendation
Actual devolution to VCs Projected devolution as per 1st SFC
2015-20 6123.29
7190.83
2019-20 2098.22
1868.08
2018-19 1614.74
1623.03
2017-18 1694.47
1410.1
2016-17 715.86
1225.17
2015-16 0
1064.45
0 1000 2000 3000 4000 5000 6000 7000 8000

₹ in lakh
Source: Local Administration Department and Report of 1st SFC of Mizoram
6.17 Table 6.5 presents the expenditure profiles indicating the utilisation of the 1st
SFC grants received by the VCs. The main item for which nearly 80% of the
SFC grants are used is internal roads, i.e., internal roads, PCC pavement,
masory steps, retaining walls, side drains, culverts, etc. This is followed by
community assets, i.e., a community hall, VC house, library, or any other
building, which accounts for 7.33%, and sanitation and waste management,
i.e., sanitation and solid and liquid waste management, which accounts for
6.9%. Notably, more than 87% is spent on internal roads and community
~ 174 ~
__________________________________________________________________________________
assets, while nearly 10% is spent on sanitation, waste management, and

drinking water (drinking water, rainwater harvesting, and any other water
conservation projects). Therefore, it can be said that the devolution of funds
to the VCs, as recommended by the 1st SFC, is utilised to create community
assets and sanitation-related works.
Table 6.5 Expenditure profile of Village Councils on grants received from

1st State Finance Commission
(₹ in lakh)
Sl. 2016- 2017- 2018- 2019- Share
Expenditures Total
No. 17 18 19 20 (%)
Drinking water,
rain water
1 harvesting and any 22.49 42.70 48.30 26.62 140.11 2.29
other water
conservation works
Sanitation, solid
2 and liquid waste 121.58 106.44 77.33 116.89 422.25 6.90
management
Internal roads, PCC
pavement, masonry
steps, retaining
3 504.31 1303.03 1313.57 1772.84 4893.76 79.92
wall, side drain,
culvert and similar
civil works
Solar streetlights
and similar works
4 0.00 30.53 27.75 26.08 84.36 1.38
utilizing solar
energy
Maintenance of
5 17.61 42.85 37.49 32.20 130.16 2.13
burial grounds
Health related
6 0.26 2.49 0.58 0.61 3.94 0.06
works
Community Hall,
Village Council
House/Library or
7 49.61 166.42 109.72 122.97 448.72 7.33
any other
community
building
Total 715.86 1694.47 1614.74 2098.22 6123.29 100
6.18 Tables 6.6 and 6.7 show the pattern of utilisation by Village Councils of grants
from the 14th FC and 15th FC. As noted earlier, though excluded area grants
were received from the Central Government in 2017–18, the actual
expenditure was seen in FY 2017–18 and FY 2019–20.
~ 175 ~
__________________________________________________________________________________
Table 6.6 Expenditure profile of Village Councils on grants received from the
Central Government
(₹ in lakh)
Sl.
Expenditures 2017-18 2019-20 Total Percent
No.
Drinking water, rain water
1 harvesting and any other water 0.67 2.93 3.60 0.36
conservation works
Sanitation, solid and liquid
2 2.60 19.58 22.18 2.19
waste management
Internal roads, PCC pavement,
masonry steps, retaining wall,
3 656.90 279.63 936.53 92.63
side drain, culvert and similar
civil works
Solar streetlights and similar
4 0.00 0.00 0.00 0.00
works utilizing solar energy
5 Maintenance of burial grounds 19.83 10.78 30.61 3.03
6 Health related works 0.00 0.00 0.00 0.00
7 Education related works 0.00 0.67 0.67 0.07
Community Halls, Village
8 Council House, Library or any 3.77 13.68 17.45 1.73
other community building
Total 683.77 327.28 1011.04 100
Table 6.7 Expenditure profile of Village Councils on grants received from

(₹ in lakh)
Sl.
Expenditures 2020-21 2021-22 Total Percent
No.
Drinking water, rain water
1 harvesting and any other water 3177.67 697.51 3878.78 36.23
conservation works
Sanitation, solid and liquid
2 1422.31 0.00 1444.49 13.49
waste management
Internal roads, PCC pavement,
masonry steps, retaining wall,
3 3951.86 0.00 4888.39 45.66
side drain, culvert and similar
civil works
Solar streetlights and similar
4 8.47 0.00 8.47 0.08
works utilizing solar energy
5 Maintenance of burial grounds 91.10 0.00 121.71 1.14
6 Health related works 85.99 0.00 85.99 0.80
7 Education related works 16.11 0.00 16.78 0.16
Community Halls, Village
8 Council House, Library or any 242.92 0.00 260.37 2.43
other community building
Total 8996.43 697.51 10704.98 100
~ 176 ~
__________________________________________________________________________________
6.19 Further, the excluded area grants received from the Ministry of Finance during
the 14th FC period were oriented towards activities that supported Sustainable
Development Goals (SDGs) and were made through demand or project-based
sanctions. Projects under this fund were to be formulated through the Gram
Panchayat Development Plan (GPDP) at the Village level and further
coordinated at the District and State levels for further submission to the
Central Government for approval. However, as the Government took longer
than expected to finalise the projects, it was reported that the grant did not
materialise immediately and had to spill over into the subsequent years.
Moreover, the study undertaken by the Commission observes that the works
undertaken under the excluded area grants are mostly construction and
repair of internal link roads (steps, pavements, footpaths, etc.), construction
of VC houses, etc., with a limited amount directed to SDG-compliant activities.
6.20 Table 6.6 shows that out of the reported total amount of ₹1,011.04 lakh, a
sum of ₹936.53 lakh was spent on village internal roads, which included
construction and repair works of internal roads, steps, culverts, retaining
walls, etc. Internal roads shared 92.63% of the expenditures, followed by
maintenance of burial grounds (3%), sanitation and waste management
(2.2%), and community assets such as the community hall, the VC house, etc.
(1.7%). These four items constituted more than 99% of the expenditures from
the grants received from Central Government.
6.21 At the same time, Table 6.7 reveals significantly different devolution
expenditure patterns during the FC-XV award period, with increased spending
on drinking water to 36.26% from a negligible 0.4% in the FC-XIV grants, and
increased allocation for sanitation and waste management from 2.2% to
13.46%. The two items accounts for nearly 50% of the total expenditure on
devolved funds. At the same time, village internal roads remain the single
largest component of expenditure (45.66%), while a substantial amount of
2.43% is also spent on community assets (community hall, VC house, etc.).
6.22 It may be noted that rural local body Grants of the FC-XV are divided into two
parts: the basic grant (untied fund) and the tied grant, in the ratio of 50:50 in
2020–21, but the share of the tied grant has been revised upward to 60%
starting from 2021–22, and thus the ratio is now 40:60. The Tied Grants
components are to be used on works related to health and sanitation, drinking
water, rainwater harvesting, and Open Defecation Free (ODF) initiatives in the
villages. The pattern of expenditure observed in Table 6.7 resonates with the
composition of expenditure mandated by FC-XV. It was reported that the VCs
and Village Water and Sanitation Committee (VWSC) have been the key
stakeholders at the village for the selection of works to be undertaken using
the tied grant, while the District Local Administration Officer is responsible
for monitoring and coordinating the works executed in the villages. Further,
the technical departments of the government may also be involved in the
implementation of the tied grants. For example, VCs in Kolasib district and
~ 177 ~
__________________________________________________________________________________
LAD decided that the tied grant be spent on drinking water supply and
entrusted the State Public Health Engineering Department (PHED) with
project execution. The VCs decide how to use the untied components (basic
grants), taking into account the amount expected in the following year.
Selection and prioritisation of works in each village are done by the concerned
VCs, and the same is submitted to the DLAO for further action. It is reported
that the works selected by the VCs in the majority of cases fall into the
categories of internal roads, PCC pavement, masonry steps, retaining walls,
side drains, culverts, and similar civil works. Accordingly, as given in Table
6.5, this category, with the maintenance of burial grounds and community
assets together, constitutes nearly 50% of the total expenditure.
Remuneration of VC Members
6.23 Despite being endowed with various powers and functions in the village, the
Village Councils have limited revenue sources to meet establishment expenses
due to limited fund transfers from the State Government combined with small
revenue receipts from their own sources. Their honorarium is, to say the least,
minimal in comparison with the functions they must perform in carrying out
development projects within their villages.
6.24 The State Government fixes the rate of remuneration, and as of now, the rate
of monthly remuneration for the President, Vice President, Member, and
Secretary stands at ₹1000, ₹800, ₹600, and ₹450, respectively. In addition,
the village crier (Tlangau) is paid ₹450 per month as an honorarium. As no
separate fund is allocated from the government for establishment
expenditures, combined with the limited own revenue collection, the GIA
salary they receive would account for at least 90% of the total revenue
expenditure. As a result, remuneration can be considered a fair representation
of Village Council’s revenue expenditure. Chart 6.2 and Table 6.8 present the
trend of the honoraria of the VCs in recent years.
Chart 6.2 Trends in expenditures on the remuneration of Village Councils
500
476.84
480
456.16
460
441.46
440 433.24
428.85
₹ in lakh
419.11
420
403.66
397.93
400
380
360
340
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
~ 178 ~
__________________________________________________________________________________
Table 6.8 Expenditure district-wise on remuneration of Village Councils

(₹ in lakh)
2015- 2016- 2017- 2018- 2019- 2020- 2021- 2022-
District
16 17 18 19 20 21 22 23
Aizawl 45.21 49.41 47.04 47.15 47.05 33.77 35.59 35.60
Saitual 14.68 22.20 22.30
Lunglei 65.19 71.20 70.20 69.95 69.95 67.75 56.00 56.83
Hnahthial 14.72 15.84 15.84
Champhai 54.75 54.61 54.58 54.50 53.72 55.63 32.56 32.56
Khawzawl 18.52 18.52
Mamit 42.72 42.40 42.11 42.00 45.81 45.77
Serchhip 24.65 24.71 24.80 24.65 24.61 27.10 27.92 27.90
Kolasib 26.20 28.16 28.33 28.10 27.51 31.10

Lawngtlai
55.00 55.00 55.00 55.00 55.00 54.96 55.00 55.00
(LADC)
Lawngtlai
32.94 75.08 63.84 57.52 69.16 63.84 63.85 67.36
(CADC)
Siaha
57.00 55.59 55.56 97.97 50.93 55.56 55.56 55.56
(MADC)
Total 403.66 456.16 441.46 476.84 397.93 419.11 428.85 433.24
6.25 The total expenditure on the remuneration of VCs has not shown a clear trend
but has fluctuated within a short range of ₹397.93 lakh and ₹456.16 lakhs
since 2015-16. This is because the State Government fixes the remuneration
of the VC members, and other facilities such as increments, dearness
allowances, etc. are not given to them. So the total amount spent on the
honoraria of the VCs is not likely to be affected by variables such as GSDP,
State-own tax revenue, etc.; rather, it depends on outside factors, which
include the revision of rates by the Government, the creation of new VCs, etc.
Issues in the finances of the Village Councils
6.26 In the absence of Panchayati Raj Institutions as envisaged by the 73 rd

Constitutional Amendment Act, Village Councils serve as the rural local
bodies in Mizoram. The Council has executive, judicial, and financial powers,
and they play a key role in implementing various government schemes and
projects in their respective villages. However, their limited ability to generate
revenue from their own sources limits their ability to function effectively as
development agents delivering basic civic services to the rural population. As
a result, the Village Council is unable to meet even the monthly salary of its
members from its own resources. At the moment, rural local bodies across the
country at the district and block levels do not have viable revenue sources.
~ 179 ~
__________________________________________________________________________________
6.27 The only tax revenue collected by VCs in Mizoram (excluding VCs under
District Councils) is animal tax, which is collected at a rate of ₹50 per adult
and ₹20 per young domestic animal and a registration fee of ₹10 and ₹5 for
adult and young animals, respectively, under the Mizoram Animal (Control &
Taxation) Act, 2014. The VC and the Government split the animal tax 50:50,
with the latter depositing half to the Consolidated Fund of the State through
the concerned Treasury Office and the former keeping the other half in the
Village Council Fund. Table 6.1 shows that the amount of animal tax collected
barely exceeds ₹10 lakh over the 12 years under consideration. This is
basically negligible given the number of VCs in the State, with average
collections calculated to be slightly more than ₹1000 per village even when the
amount collected was highest. Furthermore, the revenue from the animal tax
has not increased over time for a variety of reasons, including the outbreak of
animal diseases, changing lifestyles, inefficient collection, and so on. The VCs
are now in a position where even a small portion of their remuneration cannot
be met from their own revenue. As a result, they have to rely heavily on fund
transfers from the State and Central Governments to cover establishment
costs and development projects. Meanwhile, they have been entrusted with
the agency role for the implementation of State and Centrally sponsored
development projects and schemes in their villages. This scenario has reduced
their role to that of merely implementing agents for government programmes.
6.28 The Lushai Hills District (Village Councils) (Amendment) Act, 2014 empowers
the VCs to collect property tax within their respective jurisdiction on such
items and at such rates as may be determined by the State Government from
time to time. However, the Village Council's power to collect property tax
within its jurisdiction has not yet been materialised at the village level. Neither
did the State Government make rules on the modality of its collection, nor the
VCs, as individuals or groups, have shown efforts to collect the property tax
within their own jurisdictions. During the course of the consultative meeting
with the District Village Council Associations of the districts, the feasibility or
otherwise of collection of property tax by Village Councils within their
respective jurisdiction as permissible under section 15(2) of the Lushai Hills
District (Village Council) Act, 1953 as amended was discussed district-wise.
The majority of the VCs in the district are in favour of the levy and collection
of property tax by Village Councils, the proceeds of which can be credited to
the Village Council Fund, because it can be a significant source of own tax
revenue for the VCs to finance the multiple functions discharged by the VCs
at the village level. The Village Councils will be in a position to make
assessment and do the actual collection of the Property tax within the limits
of their respective jurisdictions. The District Village Council Associations are
also of the view that paying Property tax would inspire the citizens to be a
more responsible citizens since their tax payment will contribute to the
development of their own village and the State as a whole.
~ 180 ~
__________________________________________________________________________________
6.29 The Lushai Hills District (Village Councils) Act, 1953, and its subsequent
amendments, as well as any other Act, do not give the Village Councils the
legal authority to collect fees or user charges for the services they provide. But
in practice, they are collecting nominal fees ranging from ₹10 up to ₹300 for
providing the recommendation of the Village Council to avail various
government services such as the issue of Scheduled Tribe Certificates,
Residential Certificates, Income Certificates, Hailing Certificates, Inner Line
Passes, Vehicle Permits, No Objection Certificates for various land revenue
certificates, etc.
6.30 The Commission also observes that the VCs are collecting user charges in a
number of villages from households receiving drinking water from public water
points or connections that are maintained by the Village Councils/Village
Water and Sanitation Committee. The revenue from the water user charge is
mostly used to maintain the water pipeline and pay the water distribution staff
that they hire.
6.31 Collection of user charges for usage of community sanitary complexes and
public urinals at a minimal cost of ₹10 - ₹20 per user is also in practice in
certain towns and villages such as Hnahthial Town and Leng Village in
Serchhip District, etc., but the fact is that attempts at the collection of minimal
user charges from community toilets constructed even under the Central
Government-sponsored Swachh Bharat Mission-Urban in the town areas have
been met with criticism from the public at large.
6.32 Minimal user charges have also been found to be collected from certain
markets constructed with funds from the Central or State Government, the
proceeds of which are used for maintenance such as waste disposal, electricity
charges, water charges, etc. The collection of minimal user charges for
markets in Dapchhuah and Darlak villages under Mamit District and Keifang
in Saitual District are cases in point.
6.33 A small fee, say ₹30 - ₹100 per month per household, is also collected by a
number of Village Councils as a sanitation fee for solid waste disposal. In fact,
solid waste management has become one of the foremost tasks of the Village
Councils, not only at district headquarters but even in the smaller towns and
villages. The amount so collected is generally used for maintenance of
sanitation vehicles and to meet the cost of engagement of drivers, helpers, fee
collectors, etc.
6.34 The Commission considers that the collection of user charges, especially from
assets created under Central or State government schemes, is essential to
inculcate a sense of ownership among the citizens utilising services from such
assets. The collection of user charges, although nominal in nature, forms an
important component of the non-tax revenue of the Village Councils, and the
generation of own-source revenue is highly essential for the maintenance of
~ 181 ~
__________________________________________________________________________________
public assets created under various Central and State government schemes.
The flow of income from collection of fees and user charges is regular and
substantial, and it would have been the VCs' most important non-tax revenue
source had it been accounted for properly.
6.35 Further, the VCs, being the administrative entity in their area, are expected
to lay down proper regulations on establishing shops, tea stalls, restaurants,
hotels, etc., in their areas. But the aforesaid Act does not empower the VCs to
issue licenses and collect fees against the issue of such licenses. There is
scope for mobilising revenue from issue of licenses to such business entities
in the village if proper guidelines on the matter are in place.
6.36 The Lushai Hills District (Village Councils) Act, as amended, provides for the
establishment of a Village Council Fund (VCF) for the Village Councils. The
Fund shall receive any collection authorised by law, other than district
revenue and taxes, made in the village. This is done through a separate
account. The government provides all VCs with a cash or account book in
which their receipts and expenditures must be properly recorded. These cash
books may be audited at any time, and failure to keep a cash book may result
in the VC's dissolution. However, field observation during the course of the
study project commissioned by us reveals that a number of VCs fail to keep
the account book properly, and they fail to properly enter all internal receipts
and expenditures. This is due, in part, to their lack of knowledge of the
accounting procedure and the lack of continuity in bookkeeping as a result of
the change in the person in charge after each election. However, they are
found to be properly recording the proceeds of animal tax because they are to
be deposited in the State Consolidated Fund through the District Local
Administration Officer (DLAO) and are subject to audit by local fund auditors.
6.37 Funds have been devolved to VCs from the State and Central governments in
accordance with the recommendations of the State and Union Finance
Commissions, respectively. These are primarily intended for the development
of assets in the village for the benefit of the people. Furthermore, the state
government from time to time provides grants to VCs for creation of capital
assets through State programmes (such as New Economic Development
Policy, Socio Economic Development Policy, Member of Legislative Assembly
Local Area Development Fund, and so on). In fact, a large sum of money has
been spent on asset creation in the villages. However, when it comes to on-
the-spot verification of assets created through Central and State devolutions,
as well as other State development grants, no record of the funding sources,
implementing agency, maintenance provisions, and so on can be found in
many cases. Furthermore, the concerned Village Council does not keep a
proper Asset Register that records all assets created through State and Central
fund devolutions. In most cases, however, records can be found in works
carried out under the MGNREGS scheme. As a result, the lack of records on
assets created through Central and State devolutions of funds in a proper
~ 182 ~
__________________________________________________________________________________
Asset Register is likely to have negative implications for future assessments of

the need for additional intervention, and it will also hamper the estimation of
depreciation on the capital assets created.
6.38 A critical challenge is the lack of adequate data on Village Council revenue
and expenditures. The State Finance Department's Finance Commission Cell
has been maintaining some data pertaining to local finance, but they are
generally macro data obtained from the State budget documents and reports
of the concerned departments, with hardly any detailed data implicating the
financial positions of the VCs. This is a significant disadvantage in analysing
Village Council finances, making forecasting future requirements difficult.
Data management is a problem not only in Mizoram, but throughout the
country. Neither the local body, nor state directorate on panchayats or
municipalities, nor local fund audit, nor accountant general of the state, nor
central statistical organisation, nor ministry of panchayati raj, nor ministry of
urban development, nor planning commission, have consistent fiscal data on
local bodies.
Projections of own source revenues
6.39 The projection of the own source revenues of village councils is a difficult one
considering the lack of credible fiscal data over the years. However, we proceed
to forecast the own source revenues largely on the basis of the data furnished
by the village councils themselves although there may be certain
inconsistencies in the data. We assume that the data shows the trends in
generation of own source revenues across the more than 800 village councils
within the State. The use of the ARIMA model for projections is found
unsuitable as the short fluctuations vis-à-vis the short time span would
adversely impact the robustness of the forecast. Projections are, therefore,
made on the basis of the compound annual growth rate so determined from
the available data.
6.40 The own tax revenue i.e., animal tax is not considered buoyant. We peg the
projected growth rate for animal tax at 8% which we consider is feasible if the
village councils make renewed efforts to realise the tax in its entirety without
giving exemptions at their own level. Since there can be inconsistencies in
data, we take the own tax revenue for the year 2019-20 as the base for making
future projections.
6.41 In the meantime, we have recommended at paragraph 6.57 that the State
government frame rules under the Lushai Hills District (Village Councils) Act,
2014 as amended sooner than later to facilitate collection of property tax by
village councils from the financial year 2024-25 onwards since the same will
go a long way in augmenting the own source revenues of the village councils.
In view of the above, we have included an estimate of the receipts from
collection of property tax within the own tax revenue from the year 2024-25
onwards. However, it is not easy to estimate the revenues from property tax
~ 183 ~
__________________________________________________________________________________
without a proper baseline survey data. It is assumed that the property tax will
be collected on Unit Area Method (UAM) in line with the existing system
followed by Aizawl Municipal Corporation. Under this method, the unit area
values (per sq. ft.) in different zones are multiplied by factors such as
ownership/usage, age, location, and structure to arrive at the annual property
value. A property tax is to be collected at a flat rate of 3% of the annual
property value.
6.42 As there is no baseline survey data for property tax assessment in the rural
areas of Mizoram, the only available official data on housing is the population
census which presents uses of houses for residential, commercial and other,
and also the ownership status of houses. It is observed that the number of
houses applicable for the analysis has increased from 118710 in 2001 to
162373 in 2011 with compound annual growth (CAGR) of 3.18%, and the
number of houses used for shops, restaurants, lodge, etc. has also increased
at CAGR of 3.8% from 3915 to 5683 during this period. The growth rates
observed here are used for projections. The calculation of annual property
value requires floor area, which is not available in the census report. For this,
the average floor area of the rural houses as given in the NSS 76 th Round on
Drinking Water, Sanitation, Hygiene and Housing Conditions in India 2018
(Report No.584/76/1.2/1) of the Ministry of Statistics & Programme
Implementation, Government of India, is adopted. According to this Report,
the average floor area of houses in rural areas of Mizoram is 731.2 sq. ft.
(67.93 sq. m.) in 2018. Further, the unit area value of Zone H within AMC (i.e.,
₹10) is tentatively adopted for projection. The projections of property tax that
can be collected by village councils for the years 2024-25 and 2025-26 stands,
thus, at ₹313.62 lakh and ₹323.88 lakh accordingly.
6.43 Coming to the own non-tax revenue sources, it is projected to grow by a

healthy 10% annually over the years in view of the multiple sources available
to the village councils and taking into account the fact that the village councils
themselves will make concerted effort to generate more non-tax revenues,
especially user charges from assets created under Central/State sponsored
schemes and fees from solid waste management.
Table 6.9 Projection of own source revenues of village councils

at aggregate level
(₹ in lakh)
Sl.
Revenue 2021-22 2022-23 2023-24 2024-25 2025-26
No.
Own tax revenue of VCs
(Property tax projected
1 9.62 10.39 11.22 325.74 336.97
to be levied and
collected from 2024-25)
Own non-tax revenues
2 622.93 685.22 753.75 829.12 912.03
of VCs
~ 184 ~
__________________________________________________________________________________
Projections of revenue expenditure
6.44 Despite the lack of consistent fiscal data pertaining to the finances of local
bodies especially the rural local bodies, we proceed towards making
projections of the revenue expenditure requirements of the village councils,
the rural local bodies of Mizoram, for the award period starting from 2021-22
up to the year 2025-26. We understand that the village councils in Mizoram
are performing core functions as highlighted in paragraph 5.46 and 5.47 of
this report while the functions performed by the VCs under the district
councils, as shown in table 5.2 of this report, are largely similar. The core
services delivered in common by the village councils across the State which
requires recurring revenue expenditures may be summarised as follows:
i) collection and disposal of solid waste;

ii) village sanitation including provision and maintenance of public
urinals/toilets;
iii) provision and maintenance of water points and village water supply
including piped water supply to households;
iv) provision and maintenance of community assets such as community
hall, solar streetlights, playground, library, burial ground, etc.;
v) provision and maintenance of village internal road including side
drains, retaining walls, slab culverts, masonry steps, etc.;
vi) administering relief and rehabilitation to people during calamities
through the Village Level Disaster Management Committee;
vii) prevention and control of fire including cutting of fire line.
6.45 Besides delivery of the aforesaid core functions, recurring revenue

expenditures are also required to meet the (a) monthly remuneration of the
members of the village councils including the non-elected secretary and
tlangau, and (b) office expenses to meet the cost of convening the gram sabha,
meeting of the village councils, travelling expenses, office stationeries, etc.
6.46 In order to efficiently deliver the aforesaid core functions, the Commission
estimates that a sum of ₹900 per capita per year at the aggregate level will be
the minimum essential for the village councils at the start of the award period
of 2021-22. The minimum requirement per capita per year is proposed to be
enhanced by 6% annually up to the final year of the award period 2025-26 to
offset the effect of inflation in delivery of core services.
6.47 The population served by village councils, christened as the non-municipal

population, is basically the population of Mizoram minus the population of
Aizawl urban area and Lunglei urban area that are governed by their duly
elected municipality. The non-municipal population for the years 2021-22 up
to the year 2025-26 is determined by projecting the non-municipal population
from the decadal Census data. The compound annual growth rate of the non-
municipal population between the last two census (i.e. between 2001 and
~ 185 ~
__________________________________________________________________________________
2011) stands at 1.99%. While projecting the non-municipal population, the

population of Lunglei urban area stands excluded from the year 2023-24 i.e.,
the year in which the Lunglei municipality was duly elected, thus, resulting
in a decrease in the projected non-municipal population from the year 2023-
24 as compared to the previous year. The Commission understands that the
the population data of 2011 has to be applied in all such cases where
population is a factor for determination of devolution and grants-in-aids. We
undertake a slight deviation from the aforesaid provision in the terms of
reference by using the projected non-municipal population on account of two
reasons. First, the population figures of Census 2011 are considered old and
non-reflective of the existing population served by the rural local bodies.
Second, the golden rule of cooperative federalism is that every citizen should
be assured a minimum of public services irrespective of his/her choice of
residential location. In order to promote this rule, expenditure requirements
projected based on 2011 population only for provision of basic functions
would be flawed and inadequate.
6.48 The revenue expenditure requirement of the rural local bodies is subsequently
arrived at by multiplying the projected non-municipal population with the
sum of ₹900 per capita per year that is estimated by the Commission to be the
minimum essential for seamless delivery of core services by the rural local
bodies at the aggregate level. The rate is enhanced by 6% annually up to the
final year of the award period 2025-26 to offset the effect of inflation.
6.49 The table below shows the projection of non-municipal population and the
projected revenue expenditure requirement of rural local bodies at the
aggregate level for the five years of the award period.
Table 6.10 Projection of revenue expenditure requirement of village councils

at aggregate level
Sl.
Items 2021-22 2022-23 2023-24 2024-25 2025-26
No.
Projected non-
municipal population
(inclusive of Lunglei
1 997904 1017722 964943 984156 1003752
urban area for the year
2021-22 and 2022-23
only)
Projected revenue
expenditure
requirement (₹ in lakh)
@₹900 per capita per
2 8981.14 9709.07 9757.89 10549.27 11404.93
year with the rate
enhanced by 6% per
annum to adjust for
inflation
~ 186 ~
__________________________________________________________________________________
Analysis and recommendations
6.50 Given the Village Councils' limited own tax revenue collection of around 0.5%
of the required amount, the financial condition of the Village Councils in
Mizoram is largely determined by the flow of funds devolved from the State
and Central governments, which fluctuates with the arrival of new finance
commissions at the Centre and the State. During the 14th FC period, there
was a significant setback in Central fund devolution because grants were not
made available to areas excluded from Parts IX and IX-A of the Constitution.
However, the shortfall in Central devolution was more than offset by a
significant increase in State fund devolution, which increased multiple times
after the 1st SFC's recommendations were implemented. With the end of the
1st SFC period, State devolution decreased sharply, while Central devolution
increased dramatically with the start of the FC-XV award era in 2020-21. As
a result, the Village Councils' total revenue receipt increased to ₹9,644.63 lakh
in 2020-21 from ₹2,632.46 lakh in 2019-20, reshaping the dimensions of
fiscal relations between the Village Councils and upper government.
6.51 The 1st SFC had achieved 85.2% of the projected fund devolutions to the VCs,
and the shortfall, which amounted to ₹1,607.54 lakh, was more or less the
same as the projected tax devolution in the FY 2015-16 but could not be
materialised given the time needed for administrative and accounting
settlement on the part of the State government. Despite this shortfall, the
achievement of the State government in the implementation of the 1st SFC
recommendation is commendable and has changed the stakeholders’
perceptions of the fiscal relationship between the State and local bodies.
Nearly 80% of the State tax devolution was spent on internal roads (internal
roads, PCC pavements, masonry steps, retaining walls, side drains, culverts,
etc.). In addition, 7.33% was utilised on the construction of community assets
(VC house, community hall, etc.), and 10% was expended on drinking water,
sanitation, and waste management. Thus, the key activities for which more
than 97% of the 1st SFC devolutions to the VCs were used are internal roads
and related works, the creation of community assets, drinking water,
sanitation, and waste management.
6.52 Meanwhile, four items that account for more than 99% of the Central
government's devolution during the FC-XIV period are internal roads (92.6%),
maintenance of burial grounds (3%), sanitation and waste management
(2.2%), and community assets (1.7%). At the same time, the share of drinking
water (36.26%) and sanitation and waste management (13.46%) related works
increased substantially, which accounts for nearly 50% of the Central fund
devolution during the FC-XV award period, in line with the proportion
required for tied and untied grants set forth by the Commission. The
remaining amount was spent on internal roads, burial grounds, and the
creation of community assets.
~ 187 ~
__________________________________________________________________________________
6.53 Given that no separate fund is allocated by the Government for the
establishment expenses of the VCs, with their limited revenue mobilisation
from their own sources, the GIA (salary) given by the State Government is
believed to account for at least 90% of the total revenue expenditure. Thus,
the remuneration of VCs may be considered a fair representation of the
revenue expenditure.
6.54 The capital expenditures of the VCs are not purely demand-driven but rather
determined by the amount they receive from the state and central devolutions.
In other words, they will have more capital expenditure in the year when there
are more transfers of funds from the higher governments.
6.55 Revenue from the animal tax, the only tax revenue of the VCs, is very low.
Animal tax does not show buoyancy to economic growth, and has stagnated
over the last 12 years. According to the Directorate of Economics and
Statistics, the State has 3.8 lakh animals (pigs, cattle, mithun, horse, dogs,
sheep, and buffalos) and 20.5 lakh poultry in 2019-20. Based on this figure
and the animal tax rates of ₹50 per adult and ₹20 per young animal, revenue
collection is unusually low, indicating that a large number of animals are not
covered in the animal tax assessment process. More efforts are required, and
the VCs' unilateral efforts may not be sufficient in this regard. The Animal
Husbandry & Veterinary Department's updated data on the number of
animals may be integrated with the VCs' animal registration data for better
tax surveillance and assessments. As a result, the Commission
recommends that initiative be taken by the State Government in Local
Administration Department to reorganise the assessment and collection
of Animal Tax by Village Councils with a view to enhance the own tax
revenue of the Village Councils.
6.56 Property tax has so far not been collected within the jurisdiction of the Village
Councils, and the 1st State Finance Commission was also silent on this issue.
The levy of Property tax is permissible under Section 15(2) of the Lushai Hills
District (Village Councils) Act, 1953, as amended, while the relevant rules
outlining the procedure for assessment and collection of the tax are yet to be
framed by the State Government. This can be an important source of own tax
revenue for the Village Councils. The subject matter of property tax occupies
an important place during the consultative meetings with the representatives
of the District Village Council Associations across the State. It is worthwhile
to note that the Village Councils are found to be willing to make assessments
and do the actual collection of the tax within the limits of their respective
jurisdictions provided the rates are not burdensome to the citizens and the
enabling rules are framed sooner than later by the State Government. Property
tax can be a buoyant source of own tax revenue for the Village Councils, the
proceeds of which will be credited to the Village Council Fund, and will help
them discharge their multiple public responsibilities. Before imposing
property tax on the general public, a public awareness campaign about the
~ 188 ~
__________________________________________________________________________________
importance of tax payment will be essential. Paying tax encourages citizens to

become more responsible citizens because their tax payment contributes to
the development of their village itself.
6.57 We understand that the own source revenue of the Village Councils is very
meagre, and therefore, the habit of paying taxes has to be inculcated amongst
the villagers too for the implementation of welfare programmes since their tax
payment itself will contribute to the development of their own village and the
State as a whole. Property tax, in fact, is an important source of tax revenue
for rural local bodies in some states such as Assam, Karnataka, Kerala, Bihar,
Gujarat, Himachal Pradesh, Punjab, Rajasthan, Sikkim, Tripura,
Uttarakhand, Tamil Nadu, West Bengal and others. The same would help
augment the own-source revenue of the Village Councils in Mizoram, provided
the State Government fixes a reasonable rate for the tax. The Commission,
therefore, recommends the levy, collection and appropriation of property
tax by Village Councils as permissible under clause (2) of section 15 of
Lushai Hills District (Village Councils) Act, 1953, as amended to augment
their own source revenue starting from the financial year 2024-25. To
fulfil the above target, the State Government in Local Administration
Department shall frame the enabling rules immediately and not later
than the 31st March, 2024.
6.58 As stated in paragraph 6.29, several Village Councils collect fees to cover the
costs of providing services to citizens at rates set by the respective Village
Councils in the absence of a suitable rate set by the State Government. The
rates are different from village to village and are in the range of ₹10 to ₹300,
depending on the type of service rendered, while there are also VCs rendering
such services free of cost. Collection of fees at varying rates for similar
types of services is not considered appropriate, and thus, the
Commission recommends that the State Government fix a reasonable
rate of fees to be collected by Village Councils for different types of
services rendered, such as providing the recommendation of the Village
Council to avail various Government services such as the issue of
Scheduled Tribe Certificates, Residential Certificates, Income
Certificates, Hailing Certificates, Inner Line Permits, Vehicle Permits, No
Objection Certificates for various land revenue certificates, etc. These
fees will indeed form a regular source of own non-tax revenue for Village
Councils.
6.59 Collection of user charges, especially from assets created under Central or
State Government schemes, is also in vogue in certain villages, while the same
is largely neglected by the majority of the Village Councils, notwithstanding
the opportunities for collection of such user charges. The rates of such user
charges are largely determined by the respective Village Councils in the
absence of a specific rate from the State Government. As pointed out in
paragraphs 6.25 to 6.29, minimal user charges are collected by certain Village
~ 189 ~
__________________________________________________________________________________
Councils from services rendered such as the supply of drinking water, the
collection and disposal of solid waste, the provision of community toilets,
community markets, etc. The Commission considers the need to collect user
charges, however minimal they may be, with a view to augmenting the own-
source revenue of the Village Councils as well as to instilling a sense of
ownership among the citizens. It views with seriousness the opportunities lost
in the collection of user charges since there are several assets created under
Central and State Government schemes from which suitable user charges can
be collected. We, therefore, recommend that the State Government fix a
suitable rate of user charge to be collected and appropriated by Village
Councils, not later than the 31st March, 2024 from various services such
as the supply of drinking water, the collection and disposal of solid waste,
the provision of community toilets, community markets, etc. These user
charges will be an important source of non-tax revenue for the Village
Councils if they are collected properly.
6.60 Village Councils in many villages are not maintaining their accounts in a
systematic way. A substantial amount of revenue receipts from miscellaneous
sources (such as fees, user charges, etc.) and expenditures are apparently not
recorded in the VC main accounts book, which may partly be attributed to the
change of members handling accounts following the general election.
Therefore, it is recommended that all the VCs be mandated to maintain
uniform accounting standards prescribed by the State Government in
consultation with the Accountant General. All receipts into the Village
Council Fund from the higher governments in the form of grants,
Centrally Sponsored Schemes, State Government Schemes, own tax
sources such as Animal Tax, Property tax, etc. and own non-tax sources
such as fees, user charges, etc., and expenditures charged upon the VC
account should be clearly reflected in the Book of Accounts. The Village
Councils shall mandatorily submit their accounts in a specified format
to the State Government through the District Local Administration
Officer at the end of every financial year. Maintenance and submission
of accounts to the District Local Administration Officer shall be pre-
requisite for release of grants recommended by the State Finance
Commission. The State Government shall compile and tabulate the
financial information for further publication in the form of the Annual
Finance of the Village Councils. This will fill data gaps on local rural
finance to a great extent.
6.61 As noted in paragraph 6.37, infrastructure assets such as public halls,

playgrounds, school buildings, internal roads, etc., are created in villages from
time to time using fund transfers from State and Central Governments.
However, there is no available database on the assets created in the villages,
and as such, it is not possible to forecast expenditure requirements for the
purpose of repair and maintenance, and it is difficult to estimate the amount
of depreciation on the capital assets. Therefore, we recommend
~ 190 ~
__________________________________________________________________________________
maintenance and submission of an Asset Register by all the Village

Councils at the end of every financial year capturing the basic details of
any assets created in the village using the State and Central funding
supports, and to make it available whenever the situation demands
further intervention. The format for the Asset Register shall be prepared
by the Local Administration Department in consultation with Rural
Development Department, Urban Development & Poverty Alleviation
Department, Finance Department and any other concerned
Departments, if necessary, before the 31st March, 2024. Maintenance and
submission of an Asset Register by the Village Councils before the end of
every financial year shall be a pre-requisite condition to avail grants
recommended by the State Finance Commission from the year 2024-25
onwards.
6.62 The importance of having reliable and comprehensive data on the finances of
local body is obvious and understood because it serves as the foundation for
studying their financial position. This will enable the State and Union Finance
Commissions in the future to understand the ground realities and determine
effective criteria for vertical as well as horizontal fund devolutions. Thus, we
recommend that a State Finance Commission Cell be established by the
State Government in Finance Department to coordinate the collection
and compilation of local body finances and other data. The cell will
contribute to closing the data gap on local finances and providing future
Finance Commissions with reliable data.
~ 191 ~
CHAPTER SEVEN
FINANCES OF URBAN LOCAL BODIES
7.1 Urbanization has been one critical feature of economic development

worldwide, and the urban sector has become the driver of growth. The Indian
economy is increasingly driven by its urban sector. Experts opine that cities
drive economic growth by catalysing agglomeration and network externalities.
As a result, it is necessary to make urban administration a catalyst for
economic development through the efficient delivery of essential services,
which would necessitate progressive infrastructure provisions to keep the
quality of services delivered improving in tandem with economic development.
7.2 Urban local bodies (ULBs) are the main providers of key services at the grass-
roots level. The exponentially growing urban infrastructure and service
requirements would require augmenting resources from a variety of sources.
To improve the performance, accountability, and credibility of local bodies, an
attempt was made by the 73rd and 74th Constitutional Amendments to include
important functions like the devolution of financial and administrative
responsibilities to the third tier of governance, therefore making a path for
fiscal federalism. Therefore, sound financial management with continuous
efforts to mobilise own-source revenues by the ULBs and well-organized
revenue transfers from the higher governments would be the key to making
them function efficiently in the sphere of urban administration.
7.3 The State of Mizoram has one Municipal Corporation established on the 1 st
July, 2008 as per the provisions of the Mizoram Municipalities Act, 2007 as
amended. The State Government, on the 1st March, 2022 notified the
municipal area for the establishment of another Municipal Council in Lunglei
town. An assessment of the finances of the ULBs in this chapter will, therefore,
essentially focus on the Aizawl Municipal Corporation (AMC) since the Lunglei
Municipal Council (LMC) is only in its infancy with hardly any financial
records to assess.
7.4 To have a deeper understanding of the receipts and expenditures of the AMC,
it may be pertinent to reiterate that the State Government has transferred the
following functions to the AMC, and recently to the newly constituted LMC,
out of the eighteen functions listed in the Twelfth Schedule of the Constitution:
i) urban planning including town planning.

ii) regulation of land use and construction of buildings.
iii) planning for economic and social development.
iv) public health, sanitation conservancy and solid waste
management.
~ 192 ~
Chapter 7 : Finances of urban local bodies
__________________________________________________________________________________
v) urban forestry, protection of the environment and promotion of

ecological aspects.
vi) safeguarding the interests of weaker sections of society, including
the handicapped and mentally retarded.
vii) slum improvement and upgradation.
viii) urban poverty alleviation.
ix) provision of urban amenities and facilities such as parks, gardens,
playgrounds.
x) promotion of cultural, educational and aesthetic aspects.
xi) burials and burial grounds, cremations, cremation grounds, and
electric crematoriums.
xii) cattle pounds, prevention of cruelty to animals.
xiii) vital statistics including registration of births and deaths.
xiv) public amenities including street lighting, parking lots, bus stops
and public conveniences.
xv) regulation of slaughter houses and tanneries.
Summary of revenue receipts and expenditures of the AMC
7.5 The summary of revenues and expenditures of the AMC since 2010–11 has
been presented in Table 7.1. The Corporation's revenue sources are divided
into four categories: Own revenue comprises tax and non-tax revenues, fund
transfers from the Central Government, transfers from State Government, and
other receipts. Like municipalities in the other Indian states, the AMC is also
heavily dependent on revenue transfers from higher governments. This is
basically due to the limited revenue sources available to the Corporation. The
contribution of own source revenue is less than one-third of total revenue
expenditure in 8 of the 12 years presented, indicating their heavy reliance on
higher government fund transfers for the work they need to perform over the
years. Its inability to mobilise enough funds from its own sources has forced
this Corporation to be at the mercy of the State and Central Governments for
any developmental work. Greater dependency on the upper tiers renders the
local government vulnerable regarding spending on the provision of basic
infrastructure and services.
7.6 Fund transfers from the Central Government are broadly classified into grants
as per the recommendation of the Union Finance Commissions (FC transfers)
and Centrally Sponsored Schemes (CSS). Similarly, fund transfers from the
State Government are classified into two types: devolution of State’s own taxes
as recommended by the State Finance Commission and Grants-in-Aid (GIA).
The total revenue receipt (TRR) of the Corporation increased at an annual
compound rate of 14.3% during the last 12 years, from ₹1,113.96 lakh in
2010–11 to a peak of ₹7,357.26 lakh in 2020–21 and down to ₹3,917.35 lakh
in 2021–22. The own revenue receipt has been increasing very fast at an
annual compound rate of 34.8%, mostly driven by the collection of property
tax since 2015, going from ₹20.41 lakh to ₹643.72 lakh during this period.
~ 193 ~
__________________________________________________________________________________
However, the average contribution of own revenue to total revenue receipt

(TRR) during this period is 9.3%, having been as low as 1.8% in 2010-11 and
3.1% in 2014-15, indicating the AMC's heavy reliance on revenue transfers
from higher governments. Accordingly, the total transfer of funds received by
the Corporation from higher governments (Central and State Governments)
has been continuously increasing from ₹1,093.55 lakh in 2010–11 to
₹5,298.01 lakh in 2017–18, peaked at ₹6,772.45 lakh in 2020–21, and
decreased to ₹3,273.63 lakh in 2021–22.
7.7 Fund transfers from the Central Government in the form of Urban Local
Bodies (ULB) grants, as recommended by succesive Union Finance
Commissions (13th, 14th, and 15th FCs), has contributed 73.9% of the total
transfers on average during the last 12 years. The share of Central transfers
was the lowest in 2018-19, accounting for 53.3% of the total transfers, while
the share of State transfers was highest at 46.7% this year. Meanwhile, the
Central transfers peaked in 2020–21, accounting for 87.2% of the total fund
transfer to the AMC. It is observed that while the Central transfers decreased
drastically in financial year 2021–22 from ₹5,904.45 lakh in 2020–21 to
₹1,745.11 lakh in 2021–22, the State transfers jumped from ₹868.01 lakh to
₹1,528.52 lakh to compensate the shortfall. This year, the reduced Central
transfers is also reflected in the increased percentage contribution of own
revenues to the total revenue receipts, which rose to 16.4%. As a result,
whenever the Central fund transfer falls short of the requirements, the State
government makes up the difference by allocating additional funds to the
Corporation. Hence, the proportion of State and Central transfers changes
accordingly.
7.8 It is also observed from Table 7.1 that a substantial proportion of State
government fund transfers came from tax devolution in the financial years
2016–17, 2017–18, and 2019–20, with no Grants-in-Aid receipts during this
period. However, the tax devolution was discontinued, and GIA became the
main channel of State fund transfer once again after the 1st SFC period was
completed. Meanwhile, the Corporation also received some amounts from
other sources, primarily penal interest paid by the State government as
interest for the late release of the Central government funds.
~ 194 ~
Table 7.1 Summary of Revenue Receipts and Expenditures of the Aizawl Municipal Corporation
₹ in lakh
Expenditure Own Revenue Central Transfer State Transfer Own
Others Total
Revenue
Year Property Non-Tax Tax (Penal Revenue
Revenue Capital Total Total FC transfer CSS Total GIA Total as % of
Tax Revenue Devolution Interest) Receipt
TRR
2010-11 181.91 211.85 393.76 0.00 20.41 20.41 932.05 0.00 932.05 161.50 161.50 1113.96 1.8
2011-12 407.79 1278.45 1686.24 0.00 29.70 29.70 1107.00 0.00 1107.00 378.09 378.09 1514.79 2
2012-13 931.97 946.85 1878.82 223.47 81.34 304.81 1982.09 0.00 1982.09 339.37 339.37 2626.27 11.6
2013-14 1375.16 1455.29 2830.45 0.00 102.97 102.97 1863.10 0.00 1863.10 604.19 604.19 2570.26 4
2014-15 1374.87 1652.13 3027.00 1.94 129.08 131.02 3600.46 0.00 3600.46 558.09 558.09 4289.57 3.1
2015-16 1368.68 1470.38 2839.07 114.18 174.39 288.57 2968.91 0.00 2968.91 0.00 584.87 584.87 32.69 3875.04 7.4
2016-17 1986.78 977.18 2963.96 220.40 277.57 497.97 1375.50 73.00 1448.50 333.66 0.00 333.66 54.38 2334.51 21.3
~ 195 ~
2017-18 1641.96 2440.55 4082.52 275.53 244.57 520.10 2192.50 200.11 2392.61 2905.40 0.00 2905.40 38.74 5856.85 8.9
2018-19 2835.67 2737.00 5572.67 297.07 571.29 868.36 1990.50 220.37 2210.87 1939.56 0.00 1939.56 0.00 5018.79 17.3
2019-20 3045.73 3371.01 6416.74 344.06 308.93 652.99 4486.50 70.60 4557.10 1417.93 0.00 1417.93 14.06 6642.08 9.8
2020-21 3458.61 2492.40 5951.02 307.79 276.77 584.56 4500.00 1404.45 5904.45 0.00 868.01 868.01 0.25 7357.26 7.9
2021-22RE 2990.40 3922.52 6912.92 322.09 321.63 643.72 1700.00 45.11 1745.11 0.00 1528.52 1528.52 0.00 3917.35 16.4
CAGR (%) 24.6 19.5 21.5 ** 28.1 34.8 8.4 ** 9.8 ** ** 20.1 ** 14.3
Source: Aizawl Municipal Corporation & Finance Department, Mizoram
Note: FC Transfer is the fund transfer from the Central government as recommended by Union Finance Commissions; CSS includes receipt from AMRUT, Swach Bharat Mission, DAY-NLUM; CAGR
is the Compound Annual Growth Rate; and ** insignificant trend coefficient
__________________________________________________________________________________
__________________________________________________________________________________
7.9 On the expenditure side, revenue expenditure has accounted for 47.4% of the
total expenditure on an average since 2010–11. The revenue expenditure
expanded rapidly and increased by more than 16 times in 12 years, from a
mere ₹181.91 lakh in 2010–11 to ₹1,368.68 lakh in 2015–16 and further to
₹3,458.61 lakh in 2020–21, which indicates annual compound growth of
24.6%. Meanwhile, as shown in the Chart 7.1, the proportion of capital
expenditure peaked at 75.8% in 2011–12 and 56.7% in 2021–22. The
changing ratio of revenue and capital expenditure has been driven by the
grants received from higher governments, especially Central government
transfers. While giving grants as per the recommendation of Finance
Commissions, the Central government mandates spending a substantial
proportion on particular activities, called tied grants, which are capital
expenditures in most cases.
Chart 7.1 Revenue and capital expenditure of AMC in percentage
120.0
100.0
33.0
41.9
Percentage
49.1
50.4
80.0
51.4
51.8
52.5
53.8
54.6
56.7
59.8
75.8
60.0
40.0
67.0
58.1
50.9
49.6
48.6
48.2
47.5
46.2
45.4
43.3
40.2
20.0
24.2
0.0
Revenue Expenditure Capital Expenditure
7.10 Table 7.1 shows the rapid increase in revenue expenditure at an annual rate
of 24.6%, which surpassed the growth of total revenue receipts at 14.3% per
annum. The revenue expenditure growth is well above the increasing Central
transfers and State fund transfers, which are growing at 9.8% and 20.1% per
annum, respectively. Moreover, the own revenues in the years 2020–21 and
2021–22 were only 16.9% and 21.5% of the revenue expenditure, respectively.
As a result, the trend clearly shows that expanding revenue expenditures are
squeezing resources. If this trend continues, the Corporation's resources will
be insufficient to fund additional development projects sooner or later.
Own Source Revenues : Tax and Non-Tax
7.11 The trends of the AMC's total tax and non-tax revenue collections from 2015-
16 to 2022–23 BE have been presented in Chart 7.2, and the item-wise
~ 196 ~
__________________________________________________________________________________
revenue receipts are presented in Table 7.2. The total tax revenue collection
has shown a steady increase with short-term fluctuations from ₹114.18 lakh
in 2015–16 to ₹400.00 lakh in 2022–23 with a compound annual growth rate
(CAGR) of 14.2%. Non-Tax Revenue (NTR) has also increased from ₹174.39
lakh in 2015-16 to a peak of ₹571.29 in 2018-19 and back to a normal trend
of ₹370.42 lakh in 2022–23, registering a compound annual growth rate of
7.1%.
7.12 Like urban local bodies in different parts of India, property tax is the only
source of municipal tax revenue in Mizoram. In addition to being a significant
source of municipal revenue in both India and other nations, property tax will
soon be the sole significant source of municipal revenue for urban local bodies
in India. Theoretically adhering to the public finance principles of efficiency,
ability to pay, benefit, and equity, it is the most significant municipal tax in
India. Revenue receipt from property tax has increased from ₹114.18 lakh in
2015-16 and reached a peak of ₹344.06 lakh in 2019–20 but declined in the
following years, and it was ₹322.09 lakh in 2021–22. The repeated lockdowns
imposed to contain the Covid-19 pandemic are believed to be the reason for
its decline. At the same time, the Budget Estimate (BE) for the financial year
2022–23 indicates a strong rebound in its collection, which is estimated at
₹400.00 lakh.
Chart 7.2 Trends in tax and non-tax revenue collections of AMC

Tax Revenue Non-Tax Revenue
600.00 571.29
500.00 400.00
344.06
307.79 322.09 370.42
400.00 275.53
₹ in lakhs
277.57 308.93 321.63

297.07
300.00 276.77
244.57
220.40
200.00 174.39
114.18
100.00
0.00
7.13 As authorised by the Mizoram Municipalities (Property Tax Management)

Rules, 2014, the AMC collects property tax on buildings. Though the rules
also permit the AMC to collect property tax on vacant land within Aizawl
municipality, the provision for the same was suspended by the State
Government vide No.B.13017/51/2013-UD&PA dt. 23.6.2015. As a result,
the Corporation has only collected property tax on buildings thus far. The
~ 197 ~
__________________________________________________________________________________
AMC is the only Municipal Corporation amongst the municipalities in North

Eastern India that has adopted the Unit Area Method (UAM) of property
taxation, for which the Ministry of Housing and Urban Affairs, Government of
India, sent its appreciation to the State Government.
7.14 For the purpose of property taxation as levied by the Municipality, the Annual
Property Value (APV) is first calculated based on the Covered Area of each floor
or unit of the building (CA) and the Unit Area Value (UAV) which is determined
by the Board of Councillors of the Municipality. To account for the wide
heterogeneity among types of properties within a classified municipal area,
the Board of Councillors also assigns “multiplicative factors” for the
determination of the Annual Property Value as per rule 12 of the aforesaid
rules. The values of multiplicative factors such as Location factor (L),
Structure factor (S), Ownership and Usage factor (U), and Age factor (A) are
duly approved and notified by the municipality. As per Rule 14 of the Mizoram
Municipalities (Property Tax Management) Rules, 2014, the APV is, thus,
calculated as
𝐴𝑃𝑉 = 𝐶𝐴 × 𝑈𝐴𝑉 × 𝐿 × 𝑆 × 𝑈 × 𝐴
7.15 Property tax would be collected at a flat rate of 3% of the Annual Property
Value, as notified by the State Government on 27.03.2015, but has since been
revised to 3.42% of the Annual Property Value on the recommendation of the
State Property Tax Board, as notified by the State Government on 08.12.2021,
to be effective beginning with the fiscal year 2022-23. Different Unit Area
Values, ranging from ₹10 to ₹20, are assigned to eight notified zones within
municipal areas. In addition, different location factors are assigned to each of
the four locational zones, such as national highways, major district roads,
other district roads, and any other roads, while structure factors are assigned
to different types of housing structures. In the same way, various ownership
factors are set according to the ownership and usage status of the buildings.
The age factor is also determined separately for buildings based on years from
completion of construction, e.g., less than 10 years, 10–25 years, etc.
7.16 The AMC undertakes the assessment and collection of property tax with the
active participation of the Local Council (LC), in which the former is
responsible for its assessment and the actual collection is entrusted to the
latter. Notably, the revenue receipt from property tax is shared by the AMC
and LC in the ratio of 20:80. Further, LCs are given 5% of the total revenue
they collect to meet the administrative expenses for collection of the tax in
their respective areas. As a result, the LCs receive 85% of the total property
tax revenue, which is channelled to them through the Ward Committee (WC)
chaired by the concerned Councillor. Given the revenue collection from own
sources and revenue transfers from higher governments, the Councillor Ward
Development Fund (CWDF) is fixed by the BOC for all the AMC Wards, and
the same amount is set for all wards. Further, the share of the LCs in the
~ 198 ~
__________________________________________________________________________________
property tax is to be adjusted to the CWDF, and if the revenue shares of the
LCs fall short of the approved amount of CWDF, the Corporation will meet the
excess requirement. It is further observed that the CWDF is divided into tied
and untied funds in a 50:50 ratio, in which the former is usually tied to
specific activities such as sanitation, etc., while the untied fund is to be
decided by the Ward Committee.
7.17 Table 7.2 shows that the most important source of non-tax revenue in terms
of value and consistency is the bank interest received from the deposit of the
municipal fund, despite not showing an increasing trend but fluctuating in
the range of ₹65.00 lakh in 2022–23 to ₹160.96 lakh in 2018–19. The
significant spike in the non-tax revenue (NTR) collection, as observed in Chart
7.2, was driven by the sharp increase in the interest income of the corporation.
It may be noted that the State Government had to pay a substantial amount
as penal interest for the late release of the fund from the Central Government
to the AMC.
7.18 Moreover, the municipality can invest funds not intended for immediate use
under Section 73 of the Mizoram Municipalities Act, 2007 as amended. Funds
may be invested in Government securities or any other avenues deemed
appropriate by the State Government, including fixed deposits in SBI,
cooperative banks, and other nationalised banks. As a result, the money
received that was not for immediate use was invested by the Corporation in
the form of a fixed deposit and earned substantial interest, which was as much
as ₹160.95 lakh in 2018–19 and ₹88.23 lakh in 2021–22.
7.19 Parking fees are one of the main contributors to the non-tax revenue in AMC;
collected under the Aizawl Municipal Corporation (Control of Parking and
Collection of Parking Fees) Regulations, 2012 as amended, their contribution
increased from ₹31.11 lakh in 2015-16 to a peak of ₹97.67 lakh in 2018-19,
dropped to ₹55.04 the next year, and rose to ₹107.95 in 2022–23. It may be
noted that the contribution of the two items, interest and parking fees,
accounted for 59.92% of total non-tax revenue in 2015–16 and 46.69% in
2022–23. The AMC collects parking fees from 51 designated parking areas by
appointing contractors (or collectors) who are selected through an open tender
at a quoted reserved price for a particular area for one year. In addition, the
receipts from building permits have been another non-tax revenue
contributor, which have increased from ₹12.81 lakh in 2010–11 to a high of
₹86.36 lakh in 2018–19 and gradually decreased afterward to ₹35.00 lakh in
2022–23. The building permit is issued upon payment of the required fees
under the Aizawl Municipal Council Building Regulations, 2012 as amended,
which necessitate permission to construct any building within the municipal
area. It is reported that the AMC has issued more than 15,000 building
permissions to date.
~ 199 ~
Table 7.2 : Own Source Revenues of the Aizawl Municipal Corporation
₹ in lakh
Sl.
Particulars 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23BE
No.
A Tax Revenue
i Property Tax 114.18 220.4 275.53 297.07 344.06 307.79 322.09 400.00
Total - Tax Revenue 114.18 220.4 275.53 297.07 344.06 307.79 322.09 400.00
B Non-Tax Revenue
i Rental income from Municipal properties 24.19 5.31 5.17 13.33 19.81 17.89 28.29 23.15
ii Fees from Licensing 8.13 12.38 16.9 25.43 29.23 32.81 37.91 50.00
iii Fees from building permit including fines 12.81 46.9 34.85 86.36 51.25 44.03 38.13 35.00
iv Fees from Advertisement and hoardings 0.00 20.67 18.18 19.32 14.56 1.71 0.88 30.00
Other type of fees :
a) Zemabawk Market Fees 6.87 0.56 0.98 0.92 0.86 0.01 0.00 0.10
v b) Street Vendors Fees 0.00 0.00 0.16 1.03 2.67 0.70 0.80 0.80
c) Fees from application of Birth & Death Certificate 0.00 10.20 9.25 16.27 10.52 0.61 1.10 0.50
~ 200 ~
e) Electric & Water Bill reimbursement from STPI 0.00 1.05 0.58 0.74 0.63 0.47 0.43 0.45
vi Entry Fees including parking fees 31.11 73.72 69.13 97.67 39.96 55.04 65.46 107.96
vii Sale and hire charges 3.16 3.74 13.69 68.40 56.70 52.94 51.46 53.00
viii Interests (Bank Interest) 73.38 66.32 68.98 160.96 73.72 68.33 88.23 65.00
Any other non tax revenue receipts:
ix Fines/Fees collected for sanitary component 1.82 3.02 1.07 78.48 9.02 0.72 5.58 4.46
Beneficiary's contribution etc. 12.92 33.71 5.62 2.37 0.01 1.50 3.36 0.00
Total - Non Tax Revenue 174.39 277.57 244.57 571.29 308.93 276.77 321.63 370.42
C TOTAL - OWN REVENUE 288.57 497.97 520.1 868.36 652.99 584.56 643.72 770.42
Note: The Compound Annual Growth Rate (CAGR) for Own Tax Revenue, Own Non-Tax Revenue and Own Revenue are 14.2%, 7.1% and 10.3% respectively.
__________________________________________________________________________________
__________________________________________________________________________________
7.20 The revenue from shop licencing fees has shown an increasing trend
consistently during the last seven years, from ₹8.13 lakh in 2015-16 to ₹50.00
lakh in 2022-23. The shop (location of business) licence is issued to regulate
business activities within the municipal areas as per the Aizawl Municipal
Council Licensing Regulation, 2012. According to the official record, 10972
licences have been issued under the regulations. Revenue from sale and hire
charges has also shown consistent increase over time, from ₹3.16 lakh in
2010–11 to a peak of ₹68.40 lakh in 2018–19 and ₹53.00 lakh in 2022–23.
Items included under sale and hire charges are revenue from sales of receipt
books for parking fees, hoarding licence application forms, building permit
application forms, shop licence forms, etc. The other major contributor to
AMC's non-tax revenue is rental income from municipal properties, fees from
advertising and hoardings, and fees collected from sanitary components.
Buoyancy of Tax & Non-Tax Revenues
7.21 It may be further interesting to examine the buoyancy of the AMC's tax and
non-tax revenues to examine their responses to economic development as
indicated by the Gross State Domestic Product (GSDP). The log-linear
regression with constant elasticity/buoyancy coefficients has been widely
used to estimate revenue buoyancy. Thus, the log-linear regression
log(𝑅) = 𝛼 + 𝛽 log(𝐺𝑆𝐷𝑃) + 𝑒
where R is the revenue (tax/non-tax/other revenue items), and e is the

random error term in a regression, is estimated. The result is presented in
Table 7.3.
Table 7.3: Buoyancy of Tax and Non-Tax Revenues in AMC
Sl. Buoyancy
Revenue Items Significance Level
No. Coefficient
Own Tax Revenue
A 0.788** 0.013
(i.e., Property Tax)
B Own Non-Tax Revenue 0.444 0.182
Non-Tax Revenue Items
Rental income from Municipal
1 1 0.113
Properties
2 Shop Licensing 1.48*** 0.000
3 Fees from building permits 0.47 0.390
Fees from advertisements and
4 -1.5 0.380
hoardings
5 Parking fees 0.417 0.328
6 Sale & hire charge 2.76*** 0.006
7 Interest receipts 0.032 0.920
Fines/Fees collected for sanitary
8 0.71 0.640
component
***significant at 1% level, **significant at 5% level
~ 201 ~
__________________________________________________________________________________
7.22 The estimated elasticity/buoyancy coefficient for property tax of 0.788 is

significant at the 5% level, indicating property tax revenue increases with an
increase in state income or economic development measured by GSDP but
less than proportionately. The estimated buoyancy of 0.788, below unity,
indicates that property tax collection increased with the increase in GSDP but
less than proportionately. Therefore, it failed to keep pace with the growth of
the economy. Efforts must be made to make the property tax buoyant to the
GSDP by reviewing rates at regular intervals and lessening exemptions from
the tax net. The reforms that bring the property tax base more closely in line
with market value will have a considerable and advantageous impact on
revenue generation.
7.23 Of the eight major non-tax revenue items, only two buoyancy estimates, for
fees from licencing and sale and hire charges, are significant. The two items
have significant buoyancy with more than unitary estimated coefficients,
which indicates increasing revenue receipts relative to the increase in the
GSDP by more than proportionately. The volatile revenue receipt from trade
licences shows the positive responses and volatility of the item to the
increasing trade and money in circulation in the economy. The buoyant
revenue from the sale and hire charge can also be interpreted as increasing
revenue collection with the growing economic activities in the municipal area,
as necessitated by economic development over time.
7.24 However, the insignificant buoyancy estimates for most NTR items make the
total NTR non-buoyant to economic development, as indicated by GSDP. The
increasing collection as the GSDP grows is required to enable the corporation
to carry out its mandated task of providing essential civic services to the urban
population. The AMC is responsible for providing a wide range of civic and
other infrastructure services to the citizens, such as sanitation, solid waste
management, street lighting, etc. Meanwhile, the municipality is given the
mandate for delivering these services, and the authority to recover costs
associated with them is also provided in municipal legislation. As a result, in
order to cater to the growing population and urbanization, the AMC must
make an effort to make its revenue sources volatile to economic development.
With increasing levels of population and growth, the demand for urban civic
infrastructure services also rises, which is expected to be catered to through
an adequate supply of it.
7.25 To make the non-tax revenue volatile, streamlining the sources and revising
rates at regular intervals is necessary. Such a move will be justified as user
charges on public services are appropriate instruments when benefits are
measurable and beneficiaries are identifiable. For such municipal services to
be volatile with economic development, the corporation must impose user fees
accordingly, keeping in mind the requirement to adequately recover
maintenance costs. Meanwhile, care needs to be taken so that the common
~ 202 ~
__________________________________________________________________________________
masses are not overburdened through proper study and research before the
fixation of rates.
Devolution of Funds to AMC
7.26 The flow of fund transfers to AMC from various sources in 2015-16 is
presented in Table 7.4. The total fund transfers received by the AMC
contributed 78% to 93% of total revenue receipt, which may be interpreted as
the AMC's high reliance on higher governments, as the average share of
transfers on total revenue receipt over the last seven years is 87.38%. Fiscal
dependency is a defining characteristic of Indian municipalities, and they are
mostly dependent on the higher levels of government. The Corporation
depends on State and Central revenue transfers for an average of 87.38% of
its expenditure requirements. Given the Corporation's limited revenue
collections, it is clear that the Corporation's ability to finance development
infrastructure for civic services is determined by fiscal transfers from higher
governments (both Central and State). On the other hand, dependency on
fiscal transfers is also the result of limited revenue sources for the local bodies
due to the wide vertical mismatches in functions and finances between the
local and upper governments. Vertical mismatches between functions and
finances are the main reason of the dependence of lower government on upper
tiers of government, yet a larger reliance on the upper tier has a negative
impact on local government operations. Fiscal transfers might therefore be
seen as a tool to address these vertical and horizontal imbalances.
7.27 The sources of fund transfers to the AMC are broadly classified as follows: (1)
State transfers (devolution of share of taxes as recommended by the 1 st State
Finance Commission and Grants-in-aid); (2) grants from Union Finance
Commissions to urban local bodies (ULBs); and (3) other transfers (CSS,
penalty, etc.). The ULB Grants received as per the recommendations of the
Union Finance Commission (FC-XIV and FC-XV) have been the main
contributor to revenues, which accounted for significantly more than 50% of
the total revenue receipt except for three years, 2017–18, 2018–19, and 2021–
22, when its contribution was 37.43%, 39.66%, and 43.77%, respectively. The
average share of this source over the past seven years is 55.01%. Thus, it can
be said that the ULB Grant received from the Central Government as per the
recommendations of the Union Finance Commissions is the largest source of
fund for this Corporation.
~ 203 ~
Table 7.4 Fund Transfers to Aizawl Municipal Corporation from State and Central Governments
₹ in lakh
Sl.
Particulars 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22RE
No.
1 Devolution of share of taxes:
(i) Salary 0.00 90.00 924.58 507.29 359.46 0.00 0.00
(ii) Non-Salary 0.00 243.66 1980.82 1432.27 1058.47 0.00 0.00
Total 0.00 333.66 2905.40 1939.56 1417.93 0.00 0.00
Grants-in-aid
(i) Salary 327.28 0.00 0.00 0.00 0.00 599.18 222.25
(ii) Non-Salary 257.59 0.00 0.00 0.00 0.00 268.83 1306.27
Total 584.87 0.00 0.00 0.00 0.00 868.01 1528.52
State Transfer - Total 584.87 333.66 2905.40 1939.56 1417.93 868.01 1528.52
Urban Local Body grants from the 14th/15th Finance
2 2968.91 1375.50 2192.50 1990.50 4486.50 4500.00 1700.00
Commission
3 Others Transfers (CSS, etc.)
(i) Penal Interest (Delay in release of 14th/15th FC Grants to
32.69 54.38 38.74 0.00 14.06 0.25 0.00
ULB)
~ 204 ~
(ii) AMRUT Project 0.00 73.00 171.39 205.97 1390.94 0.00
(iii) Swach Bharat Mission 0.00 0.00 28.72 14.40 68.56 7.00 13.61
(iv) DAY-NULM 0.00 0.00 0.00 0.00 2.05 6.51 1.00
(v) Other Contribution/Reimbursement 0.00 1.08 0.00 0.00 8.41 0.00 30.50
Sub-Total of Others 32.69 128.46 238.85 220.37 93.07 1404.69 45.11
TOTAL TRANSFER 3586.47 1837.62 5336.75 4150.43 5997.50 6772.70 3273.63
TOTAL REVENUE RECEIPT 3875.04 2334.51 5856.85 5018.79 6642.08 7357.26 3886.85
Devolution from State Govt. as % of Total Revenue Receipt 15.09 14.29 49.61 38.65 21.35 11.80 39.33
ULB Grants from 14th/15th FC as % of Total Revenue Receipt 76.62 58.92 37.43 39.66 67.55 61.16 43.74
Others Transfers (CSS, etc.) as % of Total Revenue Receipt 0.84 5.50 4.08 4.39 1.40 19.09 1.16
Total Transfer as % of Total Revenue Receipt 92.55 78.72 91.12 82.70 90.30 92.05 84.22
__________________________________________________________________________________
__________________________________________________________________________________
7.28 The share of State transfers has increased from 15.09% in 2015-16, reached
a peak of 49.6% in 2017-18, which is down to a low of 11.8% in 2020-21,
which reflects the financial stress of the State Government in the wake of the
Covid-19 pandemic. At the same time, other transfers generally meant for
Centrally Sponsored Schemes (CSS) through the State Government accounted
for around 5% and below in most years, except for 2020–21, when they
contributed 19.09% of the total revenue receipts. The fund received for
projects under the Atal Mission for Rejuvenation and Urban Transformation
(AMRUT) is the highest contributor of CSS funds received by the AMC, and it
has received an amount of ₹1,841.30 lakh from 2016–17 to date. Meanwhile,
the AMC received as much as ₹132.28 lakh from the Swachh Bharat Mission
during this period. It may be noted that all the Central funds received by the
Corporation are routed through the State Government. If the State
government fails to release the funds received by the Corporation on time, it
has to pay penal interest to the latter. Table 7.4 shows that AMC received as
much as ₹140.11 lakh during the last seven years as penal interest from the
State Government.
Expenditure patterns of AMC
7.29 The expenditure patterns of the AMC from 2015–16 have been presented in
Table 7.5. The total expenditure has increased from ₹2,839.07 lakh in 2015-
16 to ₹6,569.96 lakh in 2022–23 and is projected, by the AMC, to increase
further to ₹7,884.01 lakh by the year 2025–26. The share of revenue
expenditure has been in the range of 40–67% all through the years. A further
breakdown of revenue expenditure in percentage terms (Table 7.6) shows that
the share of operation and maintenance has fallen from 51.1% in 2015-16 to
27% in 2022-23 and is expected to fall further to 24.5% in 2025-26.
7.30 The major heads of the revenue expenditure presented in Table 7.5 are further
classified into several sub-items. Table 7.7 shows the expenditure of the AMC
on different items of revenue expenditure, and Table 7.8 gives the percentage
share of each item. The establishment's expenditure has increased almost
three times in seven years, from ₹452.96 lakh in 2015-16 to ₹1320.92 lakh in
2022–23. It can be seen from Table 7.8 that the salary and wages of the officers
and staff of the Corporation account for more than 70% of the establishment's
expenditure, which would be above 90% if the remuneration of Councillors
and Local Council (LC) members are added. If expenditure related to pension
contributions is added, more than 99% of the establishment's expenses go to
salaries and pensions. Thus, establishment expenditures may simply be
called "expenditures on salary and pension." As per the official record, the
State Government has created 225 posts for the establishment of the AMC, of
which 143 posts have been filled either on regular, deputation, contract,
Muster Roll, or co-terminus basis. Establishment expenditure will be
significantly increased if all the sanctioned posts are filled.
~ 205 ~
__________________________________________________________________________________
Table 7.5 Expenditure patterns of AMC

(₹ in lakh)
Revenue Expenditures
Revenue Expenditure
Capital Expenditure
Total Expenditure
Finance Charges
(2+3+4+5+6)
Administrative
Establishment
Maintenance
Operation &
Programme
Interest &
Expenses
Expenses
Expenses
(7+8)
Years
1 2 3 4 5 6 7 8 9
2015-16 452.96 215.84 699.87 - 0.01 1368.68 1470.38 2839.07
2016-17 663.89 362.91 959.89 - 0.09 1986.78 977.18 2963.96
2017-18 522.39 578.76 224.18 316.45 0.19 1641.96 2440.55 4082.52
2018-19 685.76 954.23 819.83 375.77 0.07 2835.67 2737.00 5572.67
2019-20 878.05 606.67 763.74 797.14 0.13 3045.73 3371.01 6416.74
2020-21 1016.36 453.88 862.92 1125.30 0.16 3458.61 2492.40 5951.02

2021-22
1033.63 516.48 1052.40 387.32 0.57 2990.40 3922.52 6912.92
RE
2022-23
1320.92 884.96 1080.00 715.00 0.60 4001.48 2568.48 6569.96
BE
Table 7.6 Expenditure patterns of AMC in percentage
Breakup of revenue expenditure in percentage

expenditure
expenditure
Revenue
Maintenance
Administrati
Establishme
nt Expenses
Operation &
ve Expenses
Programme
Capital
Interest &
Expenses
Charges
Finance
Years
2015-16 48.2 51.8 33.1 15.8 51.1 0.0 0.0
2016-17 67.0 33.0 33.4 18.3 48.3 0.0 0.0
2017-18 40.2 59.8 31.8 35.2 13.7 19.3 0.0
2018-19 50.9 49.1 24.2 33.7 28.9 13.3 0.0
2019-20 47.5 52.5 28.8 19.9 25.1 26.2 0.0
2020-21 58.1 41.9 29.4 13.1 24.9 32.5 0.0

2021-22
43.3 56.7 34.6 17.3 35.2 13.0 0.0
RE
2022-23
60.9 39.1 33.0 22.1 27.0 17.9 0.0
BE
~ 206 ~
__________________________________________________________________________________
7.31 Administrative expenses have increased more than four times, from ₹215.84
lakh in 2015–16 to ₹884.96 lakh in 2022–23. Table 7.8 shows that more than
half of the administrative expenditures go to the expenditure item categorised
as "other administrative expenses." This is followed by insurance, fees, and
taxes. The two items together account for more than 90% of the administrative
expenses in 2022–23.
7.32 Operation and maintenance expenses increase from ₹699.87 lakh in 2015-16
to ₹1,080.00 lakh in 2022–23. The most important item under operation and
maintenance is solid waste management (collection, transportation, etc.). The
annual expenditure on it has increased from ₹353.43 lakh in 2015-16 to
₹650.00 lakh in 2022–23, which accounts for more than 50% of the operation
and maintenance expenditure of the Corporation. The AMC operates one Solid
Waste Management Centre (SWMC) at Tuirial, about 20 km from the main
city, where the waste collected from different localities is dumped. It is
estimated that the AMC collects and segregates around 165.4 tonnes of solid
waste per day, of which bio-degradable, recyclable (plastic, metal, paper, etc.),
and others are 38%, 39%, and 23%, respectively.
7.33 The Local Councils (LCs) and the AMC work together to collect and dispose of
solid waste. The 83 LCs are in charge of gathering solid waste from the
specified locations within their regions and transporting it to SWMC for
disposal. The AMC and LC split the cost at an 80:20 ratio, which the Board of
Councillors recently changed to a 60:40 ratio. The LCs charge the public
within their territories with user fees in order to recoup their expenditure
shares. Depending on the number of households in the areas, different LCs
have different user charge rates. For sharing of cost, the total amount to be
incurred by the AMC is determined by calculating 80% of whatever the
amount is submitted by the LC as the amount utilized by them for solid waste
collection and disposal. The working of cost-sharing is streamlined with the
revision of the cost-sharing pattern at 60:40 starting in 2022 by calculating
the number of trips to each locality that would be fully funded by the AMC,
which the AMC considered 60 percent of the requirement on a waste collection
based on historical data. The concerned LCs would pay for additional journeys
beyond the permitted number out of the user fees collected in the locality.
7.34 Another important category of revenue expenditure is programme expenses,

which have gained increasing importance in recent years, and a sum of
₹715.00 lakh is allocated for them in 2022–23. The main item, which accounts
for more than 80%, is the Councillor Ward Development Fund (CWDF). The
allocation for this fund has gained progressive importance in recent years,
especially during the COVID-19 pandemic. Allocation for CWDF has increased
from ₹272.18 lakh in 2017–18 and peaked at ₹1,117.69 lakh in 2020–21; it is
₹570.00 lakh in the budget estimate (BE) for 2022–23.
~ 207 ~
__________________________________________________________________________________
7.35 As noted earlier, an equal amount is allocated to all the AMC Wards, which is
determined by the BOC, keeping in view the revenue positions and collection
of property tax. In theory, the Ward Committee chaired by the Councillor will
decide on the selection and prioritisation of works. However, experience shows
that, with the exception of a few cases, the concerned Councillor makes
decisions on the matter. In the absence of proper guidelines on the utilisation
of this fund, the concerned Councillor has discretionary power in the work
selection, supervision, monitoring, and settlement of expenditure bills.
Additionally, the economic nature of the expenditure is not clearly defined. It
is recorded simply under revenue expenditure, albeit this may not always be
the case as field experience demonstrates that significant sums are spent on
asset-creating expenditure.
Table 7.7 Classification of revenue expenditures of AMC
(₹ in lakh)
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
Sl.
Items
RE
BE
No
Establish-
1 ment
Expenses
Salary &
Wages of
356.97 498.10 382.52 513.67 685.92 744.25 811.77 1,049.00
Officers &
Staff
Remunera-
tion of
92.49 128.29 50.38 22.35 49.36 61.33 50.44 55.02
Elected
Councillors
Remunera-
tion of LC 0.01 24.72 58.48 105.11 84.02 56.33 70.19 84.12
Members
Honorarium
to Local - - - - 17.57 19.33 18.24 20.00
Councils
Furnishing
- - - - 1.70 - 3.40 3.40
Allowances
Stipend for
0.43 0.48 - 0.75 0.85 - - -
Apprentice
Employees
Provident 3.06 - 23.94 37.56 32.58 125.29 - 97.38
Fund (EPF)
Staff Welfare
- 0.28 0.82 0.49 - 0.34 1.94 2.00
Expenses
Pension &
Leave Salary - 11.66 5.32 4.49 4.14 9.20 26.11 10.00
Contribution
Sitting
Allowances - 0.36 0.93 1.34 1.90 0.29 51.54 -
(Councillors)
~ 208 ~
__________________________________________________________________________________
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
Sl.
RE
BE
Items
No
Sub-Total of
Est. 452.96 663.89 522.39 685.76 878.05 1,016.36 1,033.63 1,320.92
Expenses
Adminis-
2 trative
Expenses
Office
19.15 28.16 24.87 12.01 10.56 8.93 11.55 13.55
Maintenance
Communica-
tion 7.80 28.19 40.62 45.69 14.10 51.19 31.85 30.31
Expenses
Printing &
47.86 68.32 51.86 59.98 79.54 29.44 24.18 33.00
Stationery
Insurance,
12.18 15.87 53.04 414.22 76.57 55.39 206.05 238.00
Fees & Taxes
Vehicle
Insurance &
- 0.87 5.27 2.15 3.58 4.39 0.21 2.00
Registration
Fees
Other
Administra- 128.86 222.37 408.36 422.34 425.91 308.92 242.85 570.10
tive Expenses
Sub-Total of
Adm. 215.84 362.91 578.76 954.23 606.67 453.88 516.48 884.96
Expenses
Operation &
3
Maintenance
Vehicle, POL,
21.01 45.54 57.74 69.80 80.27 87.11 53.01 60.00
etc.
Infrastructure
158.92 426.72 44.49 102.89 32.44 33.33 78.91 95.00
Assets
Civic
45.52 1.10 5.83 - - - - -
Amenities
Other Assets 120.99 83.41 116.12 85.15 75.04 52.15 122.57 70.00
Solid Waste
Management
353.43 403.13 - 561.98 576.00 690.33 797.91 650.00
(Collection,
etc.)
Sub-Total of
Ops. & 699.87 959.89 224.18 819.83 763.74 862.92 1,052.40 1,080.00
Maintenance
Programme
4
Expenses
Councillor
Ward
- - 272.18 371.01 749.54 1,117.69 321.35 570.00
Development
Fund
Other
Programme - - 44.27 4.76 47.61 7.61 65.97 145.00
Expenses
~ 209 ~
__________________________________________________________________________________
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
Sl.
RE
BE
Items
No
Sub-Total of
Programme - - 316.45 375.77 797.14 1,125.30 387.32 715.00
Expenses
Interest &
5 Finance 0.01 0.09 0.19 0.07 0.13 0.16 0.57 0.60
Charges
Total
Revenue 1368.68 1986.78 1641.96 2835.67 3045.73 3458.61 2990.40 4001.48
Expenditure
Table 7.8 Classification of revenue expenditures of AMC in percentage

2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
Sl.
RE
BE
Items
No
Establishment
1
Expenses
Salary & Wages of
78.8 75.0 73.2 74.9 78.1 73.2 78.5 79.4
Officers & Staff
Remuneration of
20.4 19.3 9.6 3.3 5.6 6.0 4.9 4.2
Elected Councillors
Remuneration of
0.0 3.7 11.2 15.3 9.6 5.5 6.8 6.4
LC Members
Honorarium to
0.0 0.0 0.0 0.0 2.0 1.9 1.8 1.5
Local Councils
Furnishing
0.0 0.0 0.0 0.0 0.2 0.0 0.3 0.3
Allowances
Stipend for
0.1 0.1 0.0 0.1 0.1 0.0 0.0 0.0
Apprentice
Employees
Provident Fund 0.7 0.0 4.6 5.5 3.7 12.3 0.0 7.4
(EPF)
Staff Welfare
0.0 0.0 0.2 0.1 0.0 0.0 0.2 0.2
Expenses
Pension, Leave
0.0 1.8 1.0 0.7 0.5 0.9 2.5 0.8
Salary Contribution
Sitting Allowances
0.0 0.1 0.2 0.2 0.2 0.0 5.0 0.0
(Councillors)
Sub-Total of Est.
100 100 100 100 100 100 100 100
Expenses
Administrative
2
Expenses
Office Maintenance 8.9 7.8 4.3 1.3 1.7 2.0 2.2 1.5
Communication
3.6 7.8 7.0 4.8 2.3 11.3 6.2 3.4
Expenses
~ 210 ~
__________________________________________________________________________________
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
Sl.
RE
BE
Items
No
Printing &
22.2 18.8 9.0 6.3 13.1 6.5 4.7 3.7
Stationery
Insurance, Fees &
5.6 4.4 9.2 43.4 12.6 12.2 39.9 26.9
Taxes
Vehicle Insurance
0.0 0.2 0.9 0.2 0.6 1.0 0.0 0.2
& Registration Fees
Other
Administrative 59.7 61.3 70.6 44.3 70.2 68.1 47.0 64.4
Expenses
Sub-Total of Adm.
100 100 100 100 100 100 100 100
Expenses
Operation &
3
Maintenance
Vehicle, POL, etc. 3.0 4.7 25.8 8.5 10.5 10.1 5.0 5.6
Infrastructure
22.7 44.5 19.8 12.6 4.2 3.9 7.5 8.8
Assets
Civic Amities 6.5 0.1 2.6 0.0 0.0 0.0 0.0 0.0
Other Assets 17.3 8.7 51.8 10.4 9.8 6.0 11.6 6.5
Solid Waste
Management 50.5 42.0 0.0 68.5 75.4 80.0 75.8 60.2
(Collection, etc.)
Sub-Total of Op. &
100 100 100 100 100 100 100 100
Maintenance
Programme
4
Expenses
Councillor Ward
86.0 98.7 94.0 99.3 83.0 79.7
Development Fund
Other Programme
14.0 1.3 6.0 0.7 17.0 20.3
Expenses
Sub-Total of
Programme 100 100 100 100 100 100
Expenses
Major Items and their share in the total revenue
5
expenditure (%)
Salary & Wages of
26.1 25.1 23.3 18.1 22.5 21.5 27.1 26.2
Officers & Staff
Solid Waste
Management 25.8 20.3 0.0 19.8 18.9 20.0 26.7 16.2
(Collection, etc.)
Councillor Ward
0.0 0.0 16.6 13.1 24.6 32.3 10.7 14.2
Development Fund
Combined Share 51.9 45.4 39.9 51.0 66.0 73.8 64.6 56.7
~ 211 ~
__________________________________________________________________________________
7.36 Table 7.8 shows that in most years, three expenditure items—salary and
wages, solid waste management, and CWDF—taken together account for more
than half of the total revenue expenditures of the AMC. In 2020–21, it reaches
a high of 73.8%, and in 2022–23, it drops to 56.7% of total revenue
expenditure. As a result, it can be inferred that these three items are the main
drivers of AMC's revenue expenditure, and any expenditure reform measures
must focus on these items.
7.37 An analysis of the revenue expenditure pattern of the AMC goes to show that
the establishment expenditure and administrative expenses together occupy
a large chunk of the revenue expenditure which gradually increases from
48.9% in 2015-16 to 55.1% of the revenue expenditure in 2022-23. The
declining share of operation and maintenance is accounted for by increasing
establishment expenditure over time. Further, the combined share of
establishment and administrative expenses on the total expenditure measures
the Corporation's ability to provide basic services. The increasing share of
administration and establishment from 23.6% in 2015–16 to 33.6% of the
total expenditure in 2022–23 suggests the declining ability of the Corporation
to provide basic services. Lower spending on administration and
establishment purposes would leave more resources to the Municipal
Corporation to provide civic amenities.
7.38 In this regard, it is pertinent to highlight the expenditure patterns of Municipal

Corporations in other States and Union Territories as per the data released by
the Reserve Bank of India in its “Report on Municipal Finances”. Table 7.9
shows the establishment expenditure of Municipal Corporations across the
country wherein Mizoram stands second lowest in terms of establishment
expenditure just above the State of Sikkim while its expenditure towards
salaries and wages is comparatively higher than that of the State of Himachal
Pradesh. The administrative expenses of Municipal Corporations State-wise is
highlighted in Table 7.10 wherein Mizoram stands the highest in terms of the
share of administrative expenses on the revenue expenditure, way ahead of
comparable States like Himachal Pradesh, Sikkim, Goa and Tripura. The
operational and maintenance expenditures of Municipal Corporations State-
wise is also shown in Table 7.11. As noted in previous paragraphs, the share
of operational and maintenance expenditure in the context of Mizoram is
comparatively low when compared with similar States such as Himachal
Pradesh, Sikkim and Goa but slightly higher than that of the State of Goa.
~ 212 ~
Table 7.9 Establishment Expenditure of M unicipal Corporations State-wise
₹ in lakh
of which
Establishment Expenditure
Salary, Wages and Bonus Pension
State/UT 2017-18 2018-19 2018-19 2019-20 2017-18 2018-19 2018-19 2019-20 2017-18 2018-19 2018-19 2019-20
(Budget (Revised (Budget (Budget (Revised (Budget (Budget (Revised (Budget
(Accounts) (Accounts) (Accounts)
Estimates) Estimates) Estimates) Estimates) Estimates) Estimates) Estimates) Estimates) Estimates)
1 2 3 4 5 6 7 8 9 10 11 12 13
1. Andhra Pradesh 62,376.30 80,400.20 82,249.90 87,883.80 52,769.20 68,216.60 68,734.20 73,151.80 8,959.90 11,315.00 12,747.10 13,298.00
2. Assam 7,323.10 16,062.00 17,859.40 20,002.50 7,092.20 15,405.00 17,196.90 19,260.50 -- -- -- --
3. Bihar 35,978.10 2,07,324.90 39,120.20 66,449.30 23,192.40 27,217.30 25,102.00 46,654.20 3,624.10 3,424.20 4,547.70 4,929.80
4. Chhatisgarh 53,784.00 74,389.20 63,680.70 77,018.70 36,328.70 55,379.10 46,165.30 56,134.40 3,325.00 3,562.60 3,088.40 4,418.60
5. Goa 2,296.70 3,409.30 2,863.70 3,700.10 2,044.70 2,730.00 2,288.30 3,025.70 89.20 175.00 165.90 175.00
6. Gujarat 3,80,010.90 4,36,325.70 4,33,354.00 4,62,006.10 2,58,351.60 2,81,532.60 2,92,756.10 3,17,227.60 85,962.70 1,15,718.80 1,04,517.10 1,03,671.20
7. Haryana 66.686.1 90,393.90 89,424.90 99,254.20 51,596.40 71,450.90 70,470.90 81,353.70 9,126.70 12,075.00 12,074.00 11,711.60
8. Himachal Pradesh 6,660.70 9,339.60 6,374.40 7,209.40 487.80 505.40 505.40 541.20 53.90 71.70 71.70 69.80
9. Jammu and Kashmir -- -- -- -- -- -- -- -- -- -- -- --
10. Jharkhand 4,548.10 4,227.20 4,147.90 4,921.50 4,131.90 3,505.00 3,569.70 4,123.40 222.60 306.40 280.90 395.20
11. Karnataka 23,565.40 34,627.00 31,587.30 35,986.10 18,753.60 33,208.30 30,022.40 34,851.60 4,811.80 1,418.70 1,564.90 1,134.50
12. Kerela 1,38,741.70 45,002.50 44,180.30 48,167.30 29,152.90 35,829.20 32,763.90 36,477.20 7,565.40 6,181.50 8,467.60 8,312.60
~ 213 ~
13. Madhya Pradesh 62,719.10 74,516.30 74,516.30 75,737.40 -- -- -- -- -- -- -- --
14. Maharashtra 13,65,519.40 16,90,932.40 15,53,020.00 19,53,187.60 9,00,495.70 11,38,652.00 10,09,333.70 12,71,474.60 3,15,740.00 3,66,789.10 3,60,668.60 4,58,407.30
15. Mizoram 527.00 1,035.10 712.10 780.10 491.40 952.10 642.10 677.10 29.30 37.00 33.00 36.00
16. Odisha 21,301.00 27,969.10 28,873.60 33,846.90 6,532.60 7,902.60 8,250.20 8,489.30 2,482.40 2,299.20 2,300.20 2,756.50
17. Punjab 1,02,386.50 1,03,702.70 1,06,336.10 1,15,963.20 95,802.40 95,633.60 98,774.80 1,07,859.40 5,771.30 6,721.70 6,426.40 6,663.20
18. Rajasthan 62,313.60 85,480.20 96,203.80 1,22,031.50 59,829.90 82,008.70 92,972.50 1,17,590.00 1,566.40 2,100.00 2,080.00 1,878.00
19. Sikkim 478.80 512.20 693.80 689.50 388.30 416.90 585.40 570.80 8.60 9.00 11.10 14.00
20. Tamil Nadu 2,04,017.60 2,48,325.90 2,54,018.50 2,89,440.40 1,44,438.30 1,74,661.20 1,70,884.30 2,00,981.30 45,098.20 54,300.80 62,953.00 67,055.00
21. Telangana 1,24,419.40 1,59,896.00 1,48,540.00 1,62,050.00 1,06,282.40 1,38,560.00 1,24,660.00 1,35,532.00 18,137.00 21,262.00 23,803.00 26,440.00
22. Tripura 3,942.30 5,558.00 5,558.00 5,507.40 2,760.20 4,096.00 4,096.00 3,871.40 711.80 750.00 750.00 1,200.00
23. Uttar Pradesh 2,01,464.20 2,39,723.20 2,49,763.80 2,60,120.10 1,56,869.80 1,91,803.20 1,99,926.00 2,06,240.10 43,135.40 45,110.00 46,686.90 50,005.00
24. Uttarakhand 18,405.00 27,255.70 24,655.40 25,124.60 11,990.30 15,903.60 14,448.10 17,048.50 3,244.20 5,352.10 4,507.30 5,576.10
25. West Bengal 1,77,333.60 2,13,188.00 1,92,082.70 2,15,810.50 1,10,841.10 1,52,028.00 1,30,995.20 1,52,707.40 50,507.40 60,488.10 59,894.60 61,591.60
26. Chandigarh 32,839.90 41,106.00 39,489.00 55,676.00 19,144.40 24,240.00 22,285.00 41,320.00 3,205.70 3,800.00 4,500.00 4,500.00
27. Delhi 9,00,366.20 13,64,364.90 14,45,182.30 13,93,573.70 6,52,329.70 10,45,538.20 11,33,701.00 10,63,519.10 1,19,409.10 1,65,654.00 1,65,791.30 1,71,754.00
Total 40,60,004.70 52,85,067.20 50,34,488.00 56,22,137.70 27,52,097.80 36,67,375.40 36,01,129.30 40,00,682.30 7,32,787.80 8,88,922.10 8,87,930.50 10,05,992.90
__________________________________________________________________________________
__________________________________________________________________________________
Table 7.10 Administrative Expenses of Municipal Corporations – State-wise
(₹ in lakh)
Per Cent of Revenue Expenditure
2018-19 2018-19 2019-20
2017-18 2018-19 2018-19 2019-20
State/UT (Budget (Revised (Budget 2017-18
(Accounts) (Budget (Revised (Budget
Estimates) Estimates) Estimates) (Accounts)
Estimates) Estimates) Estimates)
1 2 3 4 5 6 7 8 9
Andhra
14683.6 24561.4 23859.0 24775.1 8.7 9.3 8.9 8.4
Pradesh
Assam -- -- -- -- -- -- -- --
Bihar 1940.1 3284.5 3525.2 10960.1 3.4 2.3 3.1 6.1
Chhatisgarh 6549.4 14456.0 9675.7 16408.9 6.2 8.3 7.3 8.2
Goa 108.9 250.3 182.0 323.7 3.8 5.0 4.3 5.8
Gujarat 28765.4 39720.0 38740.0 42830.6 3.8 4.3 4.4 4.3
Haryana 6814.7 19349.2 18863.2 18974.0 3.2 5.0 4.9 4.0
Himachal
266.6 357.1 289.7 371.1 2.0 1.6 2.6 3.0
Pradesh
Jammu and
-- -- -- -- -- -- -- --
Kashmir
Jharkhand 1279.9 1147.0 1027.1 1013.8 11.1 12.5 11.7 9.8
Karnataka 3917.8 13772.0 7706.8 10089.9 4.1 9.6 6.4 7.1
Kerala 4198.7 2542.4 2434.5 2649.9 2.0 1.4 1.8 1.3
Madhya
34806.4 41618.9 41618.9 43294.4 18.1 7.3 7.3 7.4
Pradesh
Maharashtra 206327.6 351110.6 308809.8 366438.2 7.4 9.6 9.7 9.3
Mizoram 1002.1 1186.8 1192.8 1808.5 38.1 39.7 45.9 53.2
Odisha 927.1 1845.6 1374.2 1956.3 1.6 2.8 2.0 2.5
Punjab 5050.6 5968.0 4501.0 5263.0 3.7 3.7 3.0 3.0
Rajasthan 3321.5 5844.3 5920.7 6343.8 3.0 3.1 3.2 2.9
Sikkim 64.1 103.6 105.5 109.7 12.3 19.5 15.2 15.9
Tamil Nadu 23778.7 27751.1 26110.4 28038.7 3.7 4.2 3.8 3.7
Telangana 8691.5 15304.6 13390.9 16127.8 4.0 5.2 4.8 5.1
Tripura 809.5 750.0 750.0 698.6 9.0 8.0 8.0 8.9
Uttar
11146.4 14157.8 15226.2 17033.2 3.2 2.1 2.3 3.2
Pradesh
Uttarakhand 433.4 1266.9 718.3 529.5 1.6 3.0 1.9 1.5
West Bengal 24481.5 83105.9 86427.0 88443.0 7.6 16.1 17.5 17.5
Chandigarh 10609.8 11500.0 11700.0 13500.0 20.0 17.6 18.1 17.0
Delhi 14746.6 19703.2 19667.8 19210.7 1.2 1.0 1.0 0.9
Total 414721.9 700657.1 643816.7 737192.6 5.3 6.3 6.1 6.2
Source: Report on Municipal Finances, Reserve Bank of India (2022)
~ 214 ~
__________________________________________________________________________________
Table 7.11 Operational and Maintenance Expenditure of Municipal

Corporations-State-wise
(₹ in lakh)
Per Cent of Revenue Expenditure
2018-19 2018-19 2019-20
State/ 2017-18 2018-19 2018-19 2019-20
(Budget (Revised (Budget 2017-18
UT (Accounts) (Budget (Revised (Budget
Estimates) Estimates) Estimates) (Accounts)
Estimates) Estimates) Estimates)
1 2 3 4 5 6 7 8 9
Andhra
66243.9 119195.6 114386.1 125416.3 39.1 45.0 42.5 42.5
Pradesh
Assam -- -- -- -- -- -- -- --
Bihar 10236.3 17868.7 16685.2 42589.4 17.7 12.3 14.6 23.8
Chhatisgarh 12209.5 18344.7 15239.5 24573.3 11.5 10.5 11.6 12.3
Goa 290.9 965.7 934.8 1282.6 10.0 19.5 21.9 22.8
Gujarat 145501.1 173255.9 180964.5 192399.9 19.2 18.9 20.4 19.4
Haryana 38534.1 84078.0 84078.0 122596.0 18.1 21.7 21.7 26.0
Himachal
6349.9 12861.8 4485.1 4762.1 47.5 56.8 40.0 38.3
Pradesh
Jammu and
-- -- -- -- -- -- -- --
Kashmir
Jharkhand 1295.7 3568.3 3369.9 3820.5 11.3 38.8 38.3 36.8
Karnataka 63259.0 87369.7 77863.1 89046.2 65.6 60.9 64.3 62.7
Kerala 10093.8 26318.3 22817.2 27938.2 4.7 14.6 16.8 14.1
Madhya
82194.9 93332.5 93332.5 91603.5 42.8 16.3 16.3 15.7
Pradesh
Maharashtra 558436.7 885592.9 728108.0 942876.8 20.1 24.3 22.9 24.0
Mizoram 223.4 349.6 292.5 253.5 8.5 11.7 11.3 7.5
Odisha 17642.9 23069.4 23380.6 27207.4 31.3 35.0 34.3 35.2
Punjab 22265.3 42908.4 33977.2 41518.0 16.5 26.8 22.6 23.4
Rajasthan 34507.2 70852.0 57067.0 67024.3 31.6 38.0 30.8 30.4
Sikkim 369.8 1025.4 1302.9 974.5 70.8 192.7 187.8 141.3
Tamil Nadu 129452.4 159706.3 161499.8 169383.5 20.1 24.2 23.2 22.1
Telangana 77133.9 117028.1 111506.5 129748.0 35.1 39.5 39.9 41.1
Tripura 82.5 158.0 158.0 303.3 0.9 1.7 1.7 3.9
Uttar
105946.6 366271.6 331053.2 204116.6 30.3 53.8 50.3 37.9
Pradesh
Uttarakhand 3575.1 8058.4 6388.0 7397.4 13.3 19.2 17.2 20.8
West
62084.7 87936.7 82538.2 77279.2 19.4 17.0 16.8 15.3
Bengal
Chandigarh 9695.5 12745.0 13545.0 10265.0 18.2 19.5 20.9 12.9
Delhi 264341.8 423688.1 424490.7 521228.5 20.8 21.3 21.3 24.3
Total 1721966.7 2836549.0 2589463.3 2925603.9 22.0 25.3 24.6 24.5
Source: Report on Municipal Finances, Reserve Bank of India (2022)
~ 215 ~
__________________________________________________________________________________
7.39 Coming to an analysis of capital expenditures, the breakdown of capital

expenditures by AMC from 2015–16 is shown in detail in Tables 7.12 and
7.13. From ₹1,470.38 lakh in 2015–16 to a high of ₹3,922.52 lakh in 2021–
22, the capital expenditure climbed steadily before sharply declining to
₹2,568.48 lakh in the following year. The distribution of drinking water
received new funding in 2021–2022, which significantly increased capital
spending. It should be emphasised that the ULB Grants obtained from the
FC-XV require spending 60% on projects involving drinking water, solid waste
management, sanitation, and other associated activities. In order to comply
with the requirement, it is therefore assumed that a sizable budgetary
allocation has been provided for the provision of drinking water. With the
exception of 2021–22, when funding of ₹1,315.00 lakh was allocated for
drinking water, the capital budget's share of roads and bridges has
consistently been the highest. Roads and bridges expenditures during the
seven years under review totalled ₹7,706.55 lakh, or 38.6% of the overall
capital budget. The building of internal link roads, steps, footpaths,
pavements, and road repairs are only a few of the expenses that fall under this
category.
7.40 In terms of capital expenditure, buildings rank second to roads and bridges,
with spending for them reaching ₹2,519.37 lakh (12.6% of the total) since
2015–16. The next largest component of the capital budget, at 11%, is land.
While this is going on, ₹1,383.79 lakh has been spent on sewerage and
drainage, including building, fixing, and covering drains (nullah). The Tables
demonstrate that during the previous seven years, 76.2% of the capital budget
was spent on the major capital expenditures, including roads and bridges,
buildings, land, sewage and drainage, and drinking water distribution.
Therefore, they could be referred to as the key activities under the capital
budget of the AMC.
7.41 Additionally, the AMC is responsible for transfer of funds to Local Councils
(LCs) for the payment of LC Members' salaries and non-salary grants for the
implementation of various developmental projects in various locations. The
AMC currently has 83 LCs. These LCs' annual fund devolution is shown in
Table 7.14. The non-salary component fluctuates, and there was no transfer
for this component in the fiscal years 2015–16 and 2020–21. In contrast, the
salary component is more or less a stable amount. The overall amount of
devolution varies from ₹83.90 lakh in 2015–16 to ₹506.91 lakh in the budget
estimates for 2022–23. In the years 2015–16 and 2020–21, the average
amount of devolution per LC was slightly above ₹1.00 lakh; and it is within
the range of ₹2.39 lakh in 2021-22 and ₹6.11 lakh in 2022-23.
~ 216 ~
__________________________________________________________________________________
Table 7.12 Details of capital expenditures under AMC

(₹ in lakh)
2021-22 RE
2022-23 BE
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
Sl.
Items
No.
1 Land 0.70 - 854.16 216.15 322.94 283.68 524.11 -
2 Building 217.36 191.73 184.94 240.15 831.93 483.78 230.00 139.48

Plant &
3 - 0.28 11.20 0.33 0.60 2.54 100.00 274.00
Machineries
Roads &
4 1,019.04 646.56 856.79 1,098.49 1,406.03 1,337.63 557.00 785.00
Bridges
Sewerage &
5 142.20 70.77 163.31 199.50 198.70 319.90 99.41 190.00
Drainage
Spring
6 42.62 11.23 5.72 4.98 10.38 8.29 - 255.00
Water Point
Rainwater
7 - - - - - - - 600.00
Harvesting
Drinking
8 Water - - - - - - 1,315.00 100.00
Distribution
Public
9 5.57 - 21.44 212.07 116.85 - 90.00 100.00
Lighting
10 Solar Power - - - - - - - 15.00
Office &
11 Other 10.07 39.94 28.85 0.98 6.57 7.85 10.00 -
Equipment
12 Vehicles 24.90 - 89.44 - - 48.73 65.00 -
Furniture,
13 7.94 16.67 24.64 23.54 11.42 - - -
Fittings etc.
Books &
14 - - 200.06 740.80 461.00 - - -
Others
15 Software - - - - 0.64 - - -
Other Fixed
16 - - - - - - 335.00 -
Assets
Capital
17 Work In - - - - 3.95 - 597.00 110.00
progress
Total 1470.38 977.18 2440.55 2737.00 3371.01 2492.40 3922.52 2568.48
~ 217 ~
__________________________________________________________________________________
Table 7.13 Details of capital expenditures under AMC in percentage
2021-22 RE
2022-23 BE
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
Sl.
Items
No.
1 Land 0.0 0.0 35.0 7.9 9.6 11.4 13.4 0.0
2 Building 14.8 19.6 7.6 8.8 24.7 19.4 5.9 5.4
3 Plant & Machineries 0.0 0.0 0.5 0.0 0.0 0.1 2.5 10.7
4 Roads & Bridges 69.3 66.2 35.1 40.1 41.7 53.7 14.2 30.6
5 Sewerage & Drainage 9.7 7.2 6.7 7.3 5.9 12.8 2.5 7.4
6 Spring Water Point 2.9 1.1 0.2 0.2 0.3 0.3 0.0 9.9
7 Rainwater Harvesting 0.0 0.0 0.0 0.0 0.0 0.0 0.0 23.4
Drinking Water
8 0.0 0.0 0.0 0.0 0.0 0.0 33.5 3.9
Distribution
9 Public Lighting 0.4 0.0 0.9 7.7 3.5 0.0 2.3 3.9
10 Solar Power 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.6
Office & Other
11 0.7 4.1 1.2 0.0 0.2 0.3 0.3 0.0
Equipment
12 Vehicles 1.7 0.0 3.7 0.0 0.0 2.0 1.7 0.0
Furniture, Fittings
13 0.5 1.7 1.0 0.9 0.3 0.0 0.0 0.0
etc.
14 Books & Others 0.0 0.0 8.2 27.1 13.7 0.0 0.0 0.0
15 Software 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
16 Other Fixed Assets 0.0 0.0 0.0 0.0 0.0 0.0 8.5 0.0
Capital Work In
17 0.0 0.0 0.0 0.0 0.1 0.0 15.2 4.3
progress
Total 100 100 100 100 100 100 100 100
~ 218 ~
__________________________________________________________________________________
Table 7.14 Devolution of funds to Local Councils from AMC

(₹ in lakh)
Devolution to Local Councils Average Amount
Years
Salary Non-Salary Total per LCs
2015-16 83.90 83.90 1.01
2016-17 84.02 300.76 384.78 4.64
2017-18 84.06 300.76 384.82 4.64
2018-19 84.04 300.76 384.80 4.64
2019-20 84.03 217.30 301.33 3.63
2020-21 84.77 84.77 1.02
2021-22 85.08 113.54 198.62 2.39
2022-23 84.12 422.79 506.91 6.11

7.42 Given an uncertain economic environment due to major factors like the Covid-
19 pandemic, and inflation pressures across the world, it is not easy to
forecast any economic variable. As external factors are at play impacting the
resources and expenditure requirements, it may not be feasible to strictly
follow standard econometric tools in making forecasts. The tax and non-tax
revenues of the AMC may be projected using the ARIMA model for the 5 years
of the award period. The projections are shown in Table 7.15 below.
7.43 Estimation of own source revenues of LMC is made here under the assumption
that it will mobilise revenue from sources as the AMC does. First, the per
capita tax revenue and non-tax revenue are estimated for AMC based on
population census 2011. The last five years' average of tax and non-tax
revenue receipts are used for the calculation. Then, the ratio of tax revenue to
population (T/P) and non-tax revenue to population (NT/P) are worked out.
The T/P and NT/P ratios are multiplied by the population in LMC areas to
estimate tax revenue and non-tax revenue respectively. Second, since LMC is
yet to function fully and a baseline survey for the introduction of property tax
has not been conducted to date, thus, the own revenue-population ratio will
be well below the calculated ratio in AMC. Accordingly, it is assumed that LMC
will achieve only 50% of the benchmark ratios of AMC in the first year (2023-
24) as it is in the preparatory stage. But it will be at the level of AMC in the
second year (2024-25) and catch up with the projected growth rate of own
revenue collection in AMC in the next year (2025-26), i.e. 15% growth of tax
revenue and 7% growth in non-tax revenue. Thus, the own tax and non-tax
revenues of the LMC are projected as shown in the table below.
~ 219 ~
__________________________________________________________________________________
Table 7.15 Projections of own revenues of municipalities

(₹ in lakh)
Sl.
Revenues 2021-22 2022-23 2023-24 2024-25 2025-26
No.
Own tax revenue of
1 376.04 429.43 490.40 560.02 639.53
AMC
Own non-tax
2 321.60 370.42 439.06 476.94 509.77
revenue of AMC
Own revenues of
3 697.64 799.85 929.46 1036.96 1149.30
AMC (1+2)
Own tax revenue of
4 0.00 0.00 27.70 55.40 63.71
LMC
Own non-tax
5 0.00 0.00 30.91 61.83 66.16
revenue of LMC
Own revenues of
6 0.00 0.00 58.61 117.23 129.87
LMC (4+5)
Total own revenues
7 of municipalities 697.64 799.85 988.07 1154.19 1279.17
(3+6)
Projections of revenue expenditure
7.44 Although there are reliable data on revenue expenditures incurred by the AMC
that can be utilised for making projections of requirement for the future years,
we do not have data that can be relied upon in the case of the LMC since the
municipality is in its infancy. We consider that the use of either the ARIMA
model or the use of log-linear regression may not be appropriate for projecting
the revenue expenditure requirements of the municipalities. Thus, for the sake
of simplicity, we follow the same approach for estimation of the revenue
expenditure requirements as is done in the case of village councils.
7.45 The State government in Urban Development & Poverty Alleviation

Department had transferred 15 out of the 18 functions listed in the Twelfth
Schedule to the Constitution of India to the two municipalities. We understand
that the growing revenue expenditure of the AMC is driven by the expanding
requirement for establishment expenditure, solid waste management, and
increased allocation for programme funding. In order to efficiently deliver the
core civic functions, the Commission estimates that a sum of ₹1300 per capita
per year at the aggregate level will be the minimum essential for the
municipalities at the start of the award period of 2021-22. The minimum
requirement per capita per year is proposed to be enhanced by 6% annually
up to the final year of the award period 2025-26 to offset the effect of inflation
in delivery of core civic services.
7.46 The population served by municipalities is basically the population of Aizawl

urban area and Lunglei urban area. The compound annual growth rate of the
~ 220 ~
__________________________________________________________________________________
municipal population between the last two census (i.e. between 2001 and
2011) stands at 2.44%. While projecting the municipal population, the
population of Lunglei urban area is included from the year 2023-24 i.e., the
year in which the Lunglei municipality was duly elected, thus, resulting in a
jump in the projected municipal population from the year 2023-24 as
compared to the previous year. The Commission understands that the the
population data of 2011 has to be applied in all such cases where population
is a factor for determination of devolution and grants-in-aids. We undertake a
slight deviation from the aforesaid provision in the terms of reference by using
the projected municipal population on account of two reasons. First, the
population figures of Census 2011 are considered old and non-reflective of the
existing population served by the urban local bodies. Second, the golden rule
of cooperative federalism is that every citizen should be assured a minimum
of public services irrespective of his/her choice of residential location. In order
to promote this rule, expenditure requirements projected based on 2011
population for delivery of core civic functions would be flawed and inadequate.
7.47 The revenue expenditure requirement of the municipalities is subsequently

arrived at by multiplying the projected municipal population with the sum of
₹1300 per capita per year that is estimated by the Commission to be the
minimum essential for seamless delivery of core civic services by the
municipalities at the aggregate level. The rate is enhanced by 6% annually up
to the final year of the award period 2025-26 to offset the effect of inflation. In
this regard, it may be clarified that the minimum amount per capita
determined by the Commission for delivery of core services by the
municipalities is pegged higher as compared to that of the village councils on
account of two reasons (a) transfer of 15 out of the 18 functions listed in the
Twelfth Schedule as against no specific transfer of functions listed in the
Eleventh Schedule to the village councils; (b) transfer of an exceedingly large
amount of funds per capita to village employment councils headed by the
President of the village councils through the MGNREGS. For instance, the per
capita availability of funds under MGNREGS that are implemented by the
village employment councils stands at a high of ₹4804.60 in the year 2021-
22, which is unavailable to the municipalities.
7.48 The table below shows the projection of municipal population and the
projected revenue expenditure requirements of municipalities at the aggregate
level for the five years of the award period.
~ 221 ~
__________________________________________________________________________________
Table 7.16 Projections of revenue expenditure requirements of municipalities

(₹ in lakh)
Sl.
Items 2021-22 2022-23 2023-24 2024-25 2025-26
No.
Projected municipal
population (inclusive
1 of Lunglei urban town 386724 396554 479277 490961 502930
from 2023-24 and
onwards)
Projected revenue
expenditure
requirements of ULBs
(₹ in lakh) @₹1300
2 per capita per year 5,027.41 5,464.52 7,000.70 7,601.65 8,254.19
with the rate
enhanced by 6% per
annum to adjust for
inflation
7.49 A notable feature of the finances of the AMC is its heavy dependence on fund
transfers from the Central and State Governments, which renders the
Corporation vulnerable in its ability to provide basic infrastructure and civic
services. The average contribution of revenue from own sources to the total
revenue receipt (TRR) from 2010–11 to 2021–22 is only 9.3%. Furthermore,
over the years, the Corporation's own revenue receipt has been less than one-
third of its revenue expenditure, with no visible signs of improvement. The
revenue capacity significantly falling short of committed expenditures
indicates the Corporation's vulnerability to the fiscal shocks that may come
from the upper governments, which is subject to change given the country's
fast-changing dimensions of fiscal federalism in recent years. If this trend
continues, a slight decrease in fund transfers will have a negative impact on
the Corporation's fiscal health and pose serious challenges to its ability to
carry out its mandated task of providing services to the people.
7.50 The devolution of funds from the Central and State Governments has been
AMC's main lifeline, accounting for 88.5% of the total revenue receipt (TRR)
during the last seven years from 2015–16 to 2021–22. According to the FC-
XIV and FC-XV recommendations, the ULB Grants have been the primary
funding source, accounting for 54.94% of the Corporation's total revenue
receipts and 62% of total funds devolved to the Corporation during this period.
The sharp reduction of receipts from this source in 2020–21 rendered a drastic
reduction in the TRR of the Corporation by more than 47%, revealing that the
Corporation's revenue position is shaped by fund devolution from the Central
Government. Additionally, the Central Government provided funding to the
AMC for the AMRUT Project, Swachh Bharat Mission, and DAY-NULM, which
~ 222 ~
__________________________________________________________________________________
together contributed for more than 6% of the TRR during the course of the
last seven years. More than 60% of the TRR's funding, including ULB grants
and CSS, came from the Central Government.
7.51 The percentage of devolution from the State Government since 2015–16 to
2021–22 is 27.39%. During the 1st SFC term (2015–2016 to 2019–20), the
State fund devolution to the Corporation is made as a share of taxes, whereas
it is transferred as Grants–in–Aid in other years. When fund transfers from
the Central Government fall short of the requirements, the State Government
fills the deficit by enhancing GIA to the Corporation.
7.52 Comparing the position of the Central fund devolution between the periods of
the FC-XIV and FC-XV, substantial improvement is observed in the latter. The
average annual receipts during the FC-XIV and FC-XV periods were ₹2,602.78
lakh and ₹3,100.00 lakh, with a share in the total revenue receipt of 54.85%
and 55.14%, respectively. On the other hand, there was a significant reduction
in State fund devolution after the 1st SFC period was completed. The average
annual receipt during the 1st SFC period (2015-16 to 2019-20) was ₹1,436.28
lakh, accounting for 30.3% of TRR, and it is reduced to ₹1,198.26 lakh with a
reduced share in TRR of 21.31%. Therefore, it can be inferred that the AMC
got more State fund devolution during the 1st SFC period, while it is in a better
position to receive Central devolution during the 15th FC period.
7.53 With the recovery of economic activity following the Covid-19 pandemic,
property tax collection, the only tax revenue source that exhibits time volatility
with an annual growth rate of 14.2% since its introduction, has shown a
promising trend. However, non-buoyancy of the tax to GSDP growth shows,
there is potential for improvement in the effectiveness of assessment and
collection to bring it at least on par with economic growth. Property valuation
based on the unit value method is theoretically seen as volatile with economic
growth but is subject to efforts to revise base rates at regular intervals given
the escalating market prices of the property in question in different areas. The
suspension of the property tax levy on vacant land within the municipal area
by the State Government in the year 2015 is also found unjustified in view of
an enabling provision in section 214 of the Mizoram Municipalities Act, 2007
as amended.
7.54 The Commission, therefore, recommends that the base of property tax
be enhanced by enabling the municipal property tax levy on vacant lands
as permissible under section 214 of the Mizoram Municipalities Act,
2007 as amended and following the procedure for valuation prescribed in
the Mizoram Municipalities (Property Tax) Management Rules, 2014. The
State Government may actively consider lifting the suspension order to
enable the Municipalities to generate more own source revenue.
~ 223 ~
__________________________________________________________________________________
7.55 Further, to make property tax resilient to the economic development

with the ever-expanding construction sector in the State, the State
Government may, on the recommendation of the State Property Tax
Board, revise the minimum floor rate of property tax at regular intervals
to bring it as closely as possible to the market prices of properties.
7.56 On examining the scope for mobilisation of additional tax revenue sources,
the entertainment tax becomes an attractive candidate with strong revenue
potential. It may be noted that the State Government, before the GST regime,
collected entertainment tax under the Mizoram Entertainment Tax Act, 2013,
on payments for admission to entertainment, such as games, sports, music,
dramatic performances, cable TV, and direct-to-home (DTH) services. The
revenue collected from entertainment tax by the Taxation Department before
it was subsumed under GST stood at ₹78.92 lakh in 2017–18.
7.57 Under Section 6 of the then-Mizoram Entertainment Tax Act, 2013 (now
repealed under the Mizoram Goods and Services Tax Act, 2017), a cable TV
network operator is liable to pay an entertainment tax at the rate of ₹20 per
subscriber per month. Considering that the levy of entertainment tax by local
bodies is exempt from the Goods and Services Tax and in view of the fact that
cable TV is entering almost every family nowadays, there is apparently huge
revenue potential for the levy of entertainment tax by municipalities, provided
there is an enabling provision in the Municipalities Act. In addition to cable
TV, several entertainment activities involving the collection of entry fees, such
as futsal, picnic spot, etc., have come up within the municipal area. Further,
the FC-XIV also recommended that local bodies be empowered to mobilise
resources through advertisement tax and entertainment tax, and the base
needs to be expanded to include newer forms of entertainment. In order to
ensure greater financial autonomy for the urban local bodies, we,
therefore, recommend levy of Entertainment Tax by Municipalities
within their respective jurisdiction by inserting an enabling provision
through an amendment in the Mizoram Municipalities Act, 2007 as
amended.
7.58 Revenues collected from non-tax sources do not show a clear trend and rather
fluctuations are seen over time. The highest amount of ₹571.29 lakh during
the year 2018-19 is driven mainly by a spike in interest income, i.e., penal
interest received from the State Government for the late release of the Central
funds coupled with investment of funds not meant for immediate use in fixed
deposits with banks. Meanwhile, a substantial increase in revenue collection
is also seen in other non-tax revenue items such as building permits, parking
fees, sale and hire charges, etc. Unfortunately, there is a sharp decline in NTR
collection by 45.9% the following year i.e., 2019-20, with a moderate revival
since. The inability of the AMC to sustain the momentum achieved in 2018-
19 in the subsequent years needs further examination, and the achievement
~ 224 ~
__________________________________________________________________________________
may be taken as a benchmark in its attempt to mobilise more revenue from

non-tax sources.
7.59 It is necessary to have a robust system to fix user charges to increase cost
recovery. It is understood that cent percent cost recovery may not be feasible
given that the services provided are public goods, but it is vital to make the
revenue collection grow relative to the cost incurred. The Commission, thus,
suggests that rates for user charges may be fixed at regular intervals and
be linked with the cost-of-living index, at least partially, to make it
progressive in the face of price escalations.
7.60 Further, it is recommended that the Corporation invest its idle funds,
not meant for immediate use, in assets with better returns, as
permissible under section 73 of the Mizoram Municipalities Act, 2007 as
amended. The scope of investing the funds in public securities may be
looked into to increase interest earnings.
7.61 The burgeoning revenue expenditure growing at an annual rate of 24.6% since
2010-11, outpacing revenues from own sources and fund transfers from
Central and State Governments, is a concern. In addition, combined share of
establishment and administrative expenditures on the total expenditure has
increased from 23.6% in 2010-11 to 33.6% in 2022-23. As against this, the
share of operation & maintenance has declined from 24.7% to 16.4% during
this period. Resources increasingly directed towards non-productive activities
could hamper the ability of the Corporation to deliver quality civic
infrastructure and services while also posing a challenge to the sustainability
of the handling of solid waste management, the core function of the
Corporation.
7.62 The Commission recommends that the State Government should frame
a suitable expenditure policy with measurable parameters to control
increasing revenue expenditure due to the expansion of the
establishment and administration of the Corporation and to ensure
adequate allocation towards operation & maintenance and capital
expenditure for the provision of quality civic infrastructure and services.
7.63 The expenditure that has gained progressive importance in recent years is the
Councillor Ward Development Fund (CWDF). Though the BOC allocates funds
to each ward and the Ward Committee (WC), chaired by the concerned
Councillor, is assumed to be the key stakeholder in funding, experience shows
that in the majority of cases, it is the Councillor who decides everything. In
the absence of proper guidelines governing the utilisation of CWDF, the
Councillor has discretionary power in the work selection, supervision,
monitoring, and settlement of expenditure bills. Because it is susceptible to
political pressures and seeks political advantage in selecting works and
~ 225 ~
__________________________________________________________________________________
contractors, such a system may not fare well in terms of accountability and
transparency.
7.64 It is recommended that guidelines be laid to regulate the implementation

of schemes and works under the Councillor Ward Development Fund and
that the roles of the Ward Committee and Local Council be defined
clearly. The economic nature of expenditures may also be prescribed to
enable accurate booking of the works/services implemented through
CWDF on revenue and capital heads of the account.
~ 226 ~
CHAPTER EIGHT
FINANCES OF DISTRICT COUNCILS
8.1 The establishment of District Councils pursuant to the provisions of the Sixth
Schedule is governed by clause (2) of article 244 of the Constitution of India,
and their receipt of grants-in-aid from the Consolidated Fund of India through
the concerned State Governments is governed by clause (1) of article 275 of
the Constitution. In the context of Mizoram, the District Councils are also
guaranteed a share from the net proceeds of the taxes, duties, tolls and fees
levied by the State Government, which will be distributed on the basis of the
recommendation of the State Finance Commission in line with the provisions
in section 3 of the Mizoram Finance Commission Act, 2010.
8.2 The Sixth Schedule to the Constitution gives the District Councils the
authority to assess and collect land revenue, levy and collect taxes on land
and buildings; taxes on professions, trades, callings, and employment; taxes
on animals, vehicles, and boats; taxes on goods entering markets for sale; tolls
on people residing within the District Council areas; passengers and goods
carried in ferries; and taxes for the upkeep of schools, dispensaries, or roads.
In this regard, the Constitution also grants the District Councils the authority
to frame regulations for the levy and collection of the aforementioned taxes,
subject to the approval of the Governor.
8.3 As a result, the District Councils' financial sources can be broadly divided into
two categories viz. their own source revenue and transfers from the State
Government. Both own tax revenue (OTR) and own non-tax revenue (ONTR)
from user charges, fees, etc. for various administrative and economic services
provided, are the components of Own Source Revenue (OSR) for the District
Councils.
8.4 Transfers from the State Government is basically in the form of Grants-in-aid
(GIA), also called statutory grants under Article 275 (1) of the Constitution of
India for specific purposes such as maintenance of primary schools,
development of roads, water supply, sanitation, management of forests, etc. It
can be broadly classified into three categories, namely (1) Grants-in-aid for
salary, (2) Grants-in-aid for non-salary (such as office expenditures, etc.), and
(3) Grants-in-aid for the creation of capital assets. The District Councils also
occasionally receive Excluded Areas grants from the Centre from time to time,
routed through the State Government, on account of the State of Mizoram
being exempted from the application of Part IX (Panchayats) and the tribal
areas of Mizoram from the application of Part IX-A (Municipalities) of the
Constitution.
~ 227 ~
__________________________________________________________________________________
Summary of budgetary positions of the District Councils
8.5 Table 8.1 presents a summary of the trends for the budgets of the three
District Councils, indicating the expenditures and revenue sources (own
revenues and State fund transfers). The total revenue receipts of the District
Councils have increased from ₹17,893.31 lakh in 2010–11 to ₹50,248.83 lakh
in 2021–22, more than doubling in 12 years, with a compound annual growth
rate (CAGR) of 9.98%. While the own revenue, though meagre relative to State
transfers, has shown robust growth from ₹168.09 lakh in 2010–11 to ₹565.28
lakh in 2021–22, registering a compound growth of 11.1% per annum,
transfers from the State Government in the form of grants-in-aid have also
been growing in sync from ₹17,725.22 lakh to ₹49,683.55 lakh, with an
annual growth of 9.88% during this period. Notably, the Other Grants
(consisting of grants for creation of capital assets, funding from Centrally
Sponsored Schemes (CSS), North Eastern Council (NEC), Non-Lapsable
Central Pool of Resources (NLCPR), etc. have not shown a discerning trend
during this period.
8.6 The District Councils' own revenue contribution to the revenue receipts is
negligible, hovering about 1% during the 12 years covered. This demonstrates
unequivocally that more than 98 percent of the overall expenditure needs of
the District Councils are met by State transfers. Table 8.1 shows the rapidly
expanding revenue expenditure. Revenue expenditure has nearly tripled from
₹17,580.08 lakh in 2010–11 to ₹49,617.92 lakh in 2021–22, with a CAGR of
10.99%. Capital expenditure, on the other hand, has fallen sharply, falling by
-8.44 percent each year over this period. It represents less than 1% of total
expenditure in 2021–22, effectively indicating that these District Councils
have not recently created new assets as part of development activity. However,
the State Government's efforts to reduce expenditures in the aftermath of the
COVID-19 pandemic may have resulted in a significant decrease in capital
investment, from ₹2,853.04 lakh in 2020-21 to ₹91.12 lakh in 2021-22. Even
with this little hiccup, the District Councils’ capital expenditure has not
consistently increased, but rather has decelerated over time.
~ 228 ~
Table 8.1 Budgetary position of the three District Councils in Mizoram -- Aggregate
₹ in lakh
Expenditure Own Revenue State Fund Transfer Total Rev. Own Rev.
Year GIA GIA Non Other Receipt as % of
Revenue Capital Total Tax Non-Tax Total Total
Salary Salary Grants (TRR) TRR
1 2 3 4 5 6 7 8 9 10 11 12 13
2010-11 17580.08 341.48 17921.56 113.86 54.23 168.09 17353.00 85.00 287.22 17725.22 17893.31 0.94
2011-12 18963.86 1505.67 20469.53 136.42 97.38 233.80 15487.00 3333.50 1101.87 19922.37 20156.17 1.16
2012-13 19819.42 8153.13 27972.55 167.86 111.71 279.57 17312.33 2522.94 5106.29 24941.56 25221.13 1.11
2013-14 20167.28 3148.29 23315.57 194.73 102.94 297.67 18984.40 1466.74 4257.63 24708.77 25006.44 1.19
2014-15 23491.12 5575.80 29066.92 211.38 102.45 313.83 23008.26 1882.35 2214.35 27104.96 27418.79 1.14
2015-16 26697.92 4037.04 30734.96 212.82 119.38 332.20 24036.54 2329.25 689.21 27055.00 27387.20 1.21
~ 229 ~
2016-17 30343.23 2138.45 32481.68 221.55 134.45 356.00 27324.51 2298.89 477.79 30101.19 30457.19 1.17
2017-18 34295.54 1393.59 35689.10 265.24 164.14 429.38 30241.19 4651.71 2055.74 36948.64 37378.02 1.15
2018-19 40976.30 2821.07 43797.37 284.55 153.70 438.25 38441.80 2596.96 1349.83 42388.59 42826.84 1.02
2019-20 45697.60 1672.88 47370.48 286.32 242.25 528.57 43087.22 3282.44 83.46 46453.12 46981.69 1.13
2020-21 44885.49 2853.04 47738.53 455.27 208.24 663.51 41821.31 3018.09 1059.48 45898.88 46562.39 1.42
2021-22RE 49617.92 91.12 49709.04 348.19 217.09 565.28 46427.45 3254.10 2.00 49683.55 50248.83 1.12
CAGR (%) 10.99 -8.44 9.65 10.86 11.47 11.11 11.3 17.7 -27.03 9.88 9.89
Sources: (1) Budget Documents of the State Government, and (2) Budget Documents of the three District Councils
Note: Other Grants include Grants for Creation of Capital Assets, CSS, NLCPR, NEC funded project.
__________________________________________________________________________________
Chapter 8 : Finances of district councils
__________________________________________________________________________________
Transfers from the State Government to the District Councils
8.7 The trend in fund transfers from the State Government to the three District
Councils from the year 2010-11 till 2022-23 is shown separately in Tables
8.2, 8.3, and 8.4 for Chakma Autonomous District Council, Lai Autonomous
District Council and Mara Autonomous District Council respectively. The
composition of State transfers to the three District Councils in percentage
terms is also presented in Charts 8.1, 8.2 and 8.3. It should be noted that the
State Government issued a Gazette Notification in the years 1993 and 2011
regarding the entrustment of certain powers and functions to the three
District Councils from State Departments (vide No. B17012/3/92-DCA dt.
22.9.1993 and No. C.13016/3/2010-DCA dt. 29.08.2011). Despite the fact
that these notifications have not yet been fully implemented, the State
government has entrusted the District Councils to implement certain
Centrally Sponsored Schemes (CSS) on a need-basis. As a result, CSS funds
received from the State Government and administered by District Councils are
included in State fund transfers.
Table 8.2 Trends in State transfers to CADC

(₹ in lakh)
Years GIA-Salary GIA-Non Salary Other Grants Total
2010-11 3,964.00 27.50 83.98 4,075.48
2011-12 3,616.00 565.00 745.53 4,926.53
2012-13 4,148.58 408.42 2,499.01 7,056.01
2013-14 4,305.00 474.74 970.22 5,749.96
2014-15 5,223.13 906.79 927.54 7,057.46
2015-16 5,521.09 670.00 114.11 6,305.20
2016-17 6,077.55 553.69 39.00 6,670.24
2017-18 6,909.15 1,628.84 255.60 8,793.59
2018-19 9,125.44 622.56 346.56 10,094.56
2019-20 10,360.03 1,057.31 37.48 11,454.82
2020-21 9,763.21 662.98 212.40 10,638.59
2021-22RE 11,097.77 662.98 11,760.75
2022-23BE 10,547.20 663.00 11,210.20
CAGR (%) 10.9 14.3 -15.9 8.7

Source: Budget documents of the State Government
~ 230 ~
__________________________________________________________________________________
Chart 8.1 Composition of State transfers to CADC in percentage
97.26
120.00
94.36
91.77
91.11
90.44
90.40
94.1
87.56
78.57
100.00
74.87
74.01
73.40
58.79
80.00
Percentage
60.00
35.42
18.52
16.87
40.00
15.13
13.14
12.85
11.47
10.63
9.23
8.30
8.26
6.23
6.17
5.79
5.64
3.43
2.91
2.06
2.00
1.81
20.00
0.67
5.9
0.58
0.33
0.00
0.0
0.00
GIA-Salary GIA-Non Salary Other Grants
8.8 Except for a few years when there were spikes in Other Grants (OG), GIA-
Salary has formed more than 90% of the fund transfer to CADC in the majority
of years, while the contribution of GIA non-salary component has remained in
the range of 5-12% in most cases. The salary component grew from ₹3,964.00
lakh in 2010-11 to ₹10,547.20 lakh in 2022-23, while the non-salary
component grew from ₹27.50 lakh in 2010-11 to ₹565.00 lakh in 2011-12 to
₹663.00 lakh in 2022-23. Other grants, such as State grants for capital asset
creation, Centrally Sponsored Schemes (CSS), NLCPR projects, NEC projects,
and so on, have shown high fluctuations and have been reduced to zero after
2021-22. The amount of CSS and plan fund flow, during the Planning
Commission regime, determines the sporadic trend of other grants to CADC.
8.9 The table 8.2 shows that other grants accounted for more than 35% of funds
received by the CADC, significantly altering the composition of State fund
transfers during 2012-13. In the fiscal year 2012-13, the total amount of
funds received from various CSS was as much as ₹2,499.01 lakh, including
RKVY (₹700.00 lakh), Special Plan Assistance (₹150.00 lakh), Special Central
Assistance for Tribal Development (₹400.00 lakh), NLCPR for Kamalanagar
College (₹89.60 lakh), NLCPR for Kamalanagar town modernization (₹795.53
lakh), and Longpuinghat to KKD road (₹363.88 lakh).
8.10 At the same time, the Excluded Areas grant was received twice: once in 2017-
18 (₹220.60 lakh) and then in 2020-21 (₹212.40 lakh). As a result, the State
fund devolution to CADC for developmental works is shaped by the flow of
CSS and plan funds, which saw a sharp reduction after 2014 due to the
abolition of the Planning Commission, and the Council can barely undertake
development works today.
~ 231 ~
__________________________________________________________________________________
8.11 In a nutshell, transfers from the State Government to the CADC have
increased annually at a compound growth rate of 8.70% since the year 2010-
11.
8.12 Coming to the trends in State transfers to LADC, the GIA-Salary for LADC has
risen from ₹7,217.00 lakh in 2010-11 to ₹19,363.50 lakh in 2022-23,
registering a compound annual growth of 11.2%, while non-salary
components have not changed significantly over the study period of 12 years.
It has grown from ₹30.00 lakh in 2010-11 to ₹1360.50 lakh in 2022-23. Other
grants, which are intended for the creation of capital assets and
developmental activities, are subject to a sporadic trend driven by the amount
of CSS and other plan funds received through the State Government. Looking
at the share of the three sources of fund transfer to LADC, GIA-salary has
consistently contributed the majority of the fund transfer, with the exception
of a few years when there was more CSS receipt, and has been more than 90%
after 2018-19.
Table 8.3 Trends in State transfers to LADC

(₹ in lakh)
Years GIA - Salary GIA Non Salary Other Grants Total
2010-11 7,217.00 30.00 7,247.00
2011-12 6,058.00 1,378.00 178.17 7,614.17
2012-13 6,525.75 1,551.52 701.95 8,779.22
2013-14 7,798.60 579.00 1,985.54 10,363.14
2014-15 9,319.89 283.17 9,603.06
2015-16 9,685.28 1,263.25 333.99 11,282.52
2016-17 10,936.67 888.50 293.00 12,118.17
2017-18 12,336.90 1,428.66 1,360.54 15,126.10
2018-19 15,594.92 1,062.50 469.76 17,127.18
2019-20 17,581.20 1,228.50 18.84 18,828.54
2020-21 17,394.97 1,247.54 570.27 19,212.78
2021-22 RE 19,195.01 1,360.50 20,555.51
2022-23 BE 19,363.50 1,360.50 20,724.00
CAGR in % 11.2 16.0 -10.8 10.2

~ 232 ~
__________________________________________________________________________________
Chart 8.2 Composition of State transfers to LADC in percentage

99.59
97.05
93.44
93.38
93.38
91.05
90.54
90.25
85.84
81.56
79.56
75.25
74.33
PERCENTAGE
19.16
18.10
17.67
11.20
9.44
8.99
8.00
7.33
6.62
6.56
6.52
6.49
6.20
5.59
2.96
2.97
2.95
2.74
2.42
2.34
0.41
0.10
0.00
0.00
0.00
0.00
8.13 The overall transfers from the State Government to the LADC have increased
annually at a compound growth rate of 10.20% from the year 2010-11 till the
year 2022-23.
8.14 The trends in State fund transfers to the MADC have also been quite similar
to those observed in the case of other District Councils. GIA-salary made up
more than 90% of the budget in most years. The total transfers increased from
₹6,402.74 lakh in 2010-11 to ₹17,269.00 lakh in 2022-23, registering an
annual compound growth of 8.9%. The GIA-non salary hovers around 4 - 7%
of the total State transfers except for the years 2011-12 and 2017-18, while
other grants have declined from a peak of ₹1,905.33 lakh in 2012-13 to ₹2.00
lakh in 2021-22 and no receipt thereafter.
8.15 It may be noted that the annual growth rate of GIA-Salary, i.e. 10.1%, has
exceeded the annual growth rate of the total transfers from the State
Government, i.e. 8.9%, even in the case of MADC and if this unhealthy trend
is not reversed sooner than later, there is every possibility of Salary component
taking up the entire State transfers in the near future.
~ 233 ~
__________________________________________________________________________________
Table 8.4 Trends in State transfers to MADC
(₹ in lakh)
Years GIA - Salary GIA Non Salary Other Grants Total
2010-11 6,172.00 27.50 203.24 6,402.74
2011-12 5,813.00 1,390.50 178.17 7,381.67
2012-13 6,638.00 563.00 1,905.33 9,106.33
2013-14 6,880.80 413.00 1,301.87 8,595.67
2014-15 8,465.24 692.39 1,286.81 10,444.44
2015-16 8,830.17 396.00 241.11 9,467.28
2016-17 10,310.29 856.70 145.79 11,312.78
2017-18 10,995.14 1,594.21 439.60 13,028.95
2018-19 13,721.44 911.90 533.51 15,166.85
2019-20 15,145.99 996.63 27.14 16,169.76
2020-21 14,663.13 1,107.57 276.81 16,047.51
2021-22RE 16,134.67 1,230.62 2.00 17,367.29
2022-23BE 16,038.40 1,230.60 17,269.00
CAGR in % 10.1 17.6 -25.7 8.9

Chart 8.3 Composition of State transfers to MADC in percentage

96.40
93.67
93.27
92.90
92.87
91.37
91.14
90.47
84.39
81.05
80.05
78.75
72.89
PERCENTAGE
20.92
18.84
15.15
12.32
12.24
7.57
7.13
7.09
6.90
6.63
6.18
6.16
6.01
4.80
4.18
3.52
3.37
3.17
2.55
2.41
1.72
1.29
0.43
0.17
0.01
0.00
8.16 Other grant is basically a type of transfer made by the State Government
primarily for development purposes (creation of capital assets, etc.). It
consists of State Government grants for the creation of capital assets and
Central government assistance in the form of plan grants and CSS. Tables
~ 234 ~
__________________________________________________________________________________
8.5A (CADC), 8.5B (LADC) and 8.5C (MADC) provides more information on
Central government fund transfers to the District Councils routed through the
State Government. Because some schemes and grants are not continuous, it
is difficult to accurately account for the fund flow in the budget documents of
the three District Councils, which display varying accounting formats. As a
result, the aforesaid Tables may not accurately represent all of the schemes.
Furthermore, LADC makes no detailed scheme-by-scheme classification and
instead simply combines CSS funds received into one group. Regardless of
these issues, the table is expected to show the major CSS funding sources as
well as their fund flow during the time period under consideration.
8.17 The CSS funds received by the three District Councils constitute a small
proportion of the total grants (GIA) received from the State Government, except
in a few years where it is more than 10% in CADC till 2015-16, 11.3% and
5.5% in LADC in 2017-18 and 2015-16, and 8.8% in MADC in 2015-16. It is
well below 5% of the total fund transfers in all the District Councils in all other
years. Tables 8.5A, 8.5B and 8.5C also reveal that the Rashtriya Krishi Vikas
Yojna (RKVY) has been the most important CSS implemented by the District
Councils and has shown a regular flow of funds. Furthermore, though not on
a regular basis, the Councils received a significant amount of money from
Excluded Area grants after 2015-16.
Table 8.5A Central transfers to CADC through the State Government

(₹ in lakh)
Excluded
13th
Years RKVY SPA SCA NLCPR Areas Others Total
FC
Grants
1 2 3 4 5 6 7 8 9
2012-13 700.00 150.00 400.00 1248.48 2498.48
2013-14 320.00 288.00 362.22 282.00 1252.22
2014-15 329.00 52.18 287.00 240.00 787.52 1695.70
2015-16 59.20 266.00 54.91 458.00 838.11
2016-17 39.00 220.60 259.60
2017-18 27.30 27.30
2018-19 16.86 226.00 103.70 346.56
2019-20 14.88 14.88
2020-21 33.90 21.40 55.30

Source: Chakma Autonomous District Council; SPA – Special Plan Assistance, SCA –
Special Central Assistance, NLCPR – Non Lapsable Central Pool of Resources
~ 235 ~
__________________________________________________________________________________
Table 8.5B Central transfers to LADC through the State Government
(₹ in lakh)
Years Centrally Sponsored Excluded Areas Total
Schemes Grant
(all combined)
1 2 3 4
2012-13
2013-14
2014-15
2015-16 622.00 622.00
2016-17
2017-18 1,361.32 346.72 1,708.04
2018-19 475.00 475.00
2019-20 -
2020-21 185.17 356.79 541.96
Table 8.5C Central transfers to MADC through the State Government
(₹ in lakh)
State Excluded
Years RKVY Priority NLCPR 13th FC NEA Areas Total
Projects Grant
1 2 3 4 5 6 7 8
2012-13 350.00 350.00
2013-14 67.54 67.54
2014-15 0
2015-16 72.00 764.00 836.00
2016-17 59.00 59.00
2017-18 26.18 86.79 4.50 283.68 401.15
2018-19 18.62 96.90 115.52
2019-20 14.73 8.00 22.73
2020-21 2.00 276.81 278.81
~ 236 ~
__________________________________________________________________________________
Own Tax Revenues and Efforts
8.18 The three District Councils have made efforts to increase their own tax
revenue (OTR) by framing appropriate regulations in accordance with the
provisions of the Constitution's Sixth Schedule. The trends in the total tax
revenues collected by the three District Councils from different sources are
presented in Table 8.6. The total tax revenues of all the District Councils have
increased by more than three times since 2010–11, from ₹113.86 lakh to
₹354.74 lakh in 2022-23, registering a 10.1% annual growth during this
period.
Table 8.6 Trends in Own Tax Revenue Receipts of the District Councils
– by Sources
(₹ in lakh)
Entertainmen
Trade License
Entry Tax on
Entry Tax on
Vehicles Tax
Animal Tax
Profession
Taxes on
Revenue
Vehicles
Goods
Motor
Total
Land
t tax
Boat
Tax
Years
1 2 3 4 5 6 7 8 9 10 11
2010-11 84.87 22.27 3.50 0 0 3.14 0 0.08 113.86
2011-12 102.89 24.44 5.51 0 0 3.52 0 0.06 136.42
2012-13 123.67 34.87 5.05 0 0 4.21 0 0.06 167.86
2013-14 149.94 35.46 4.60 0 0 4.58 0 0.15 194.73
2014-15 156.78 39.91 8.93 0 0 5.74 0 0.02 211.38
2015-16 151.97 44.79 8.37 1.29 0 2.63 3.30 0.47 212.82
2016-17 153.01 56.56 2.28 2.05 0 5.83 3.57 0.09 223.39
2017-18 165.73 85.03 2.50 2.26 0 4.26 5.00 0.46 265.24
2018-19 170.67 93.24 9.32 1.97 0 3.97 5.00 0.38 284.55
2019-20 183.15 80.23 12.02 2.17 0 4.36 3.67 0.72 286.32
2020-21 194.18 231.31 17.70 2.03 0.49 4.48 3.28 5.02 0.06 458.55
2021-22
202.55 108.38 24.76 3.20 1.53 6.82 4.32 0.95 0 352.51
RE
2022-23
210.66 103.67 18.65 3.10 2.00 7.00 4.50 5.00 0.16 354.74
BE
CAGR (%) 6.5 17.3 14.3 10.2 ** 4.5 ** ** -9.0 10.1
District CADC CADC CADC --- --- --- CADC

Councils
LADC LADC LADC LADC LADC LADC LADC --- ---
where
collected MADC MADC MADC MADC --- MADC MADC ---
Source: Budget documents of the three District Councils

** trend co-efficient is not significant
~ 237 ~
__________________________________________________________________________________
8.19 According to the table 8.6, three major tax revenue items are levied in all the
District Councils: taxes on professions, land revenue, and trade licences.
Taxes on professions accounts for more than 55% of total tax revenue
collected across the District Councils, followed by land revenue, which
accounts for around 30% of total tax revenue in fiscal year 2021-22, and trade
licences contributes around 7%. Land revenue has grown at the highest
annual rate of 17.30 % since 2010-11, followed by revenues from trade license
at 14.3% and professions tax at 6.5%.
8.20 Motor vehicle tax has been collected in LADC and MADC, with total revenue
increasing from ₹1.29 lakh in 2015-16 to ₹3.20 lakh in 2021-22, representing
a 10.2% annual increase. Since motor vehicle regulations have yet to be
implemented in these District Councils, the revenue from motor vehicles
reported here consists of parking fees collected in urban towns.
8.21 LADC has tapped the most tax revenue sources of the three District Councils,
collecting taxes from seven sources: taxes on professions, motor vehicles tax,
land revenue, trade licence, entertainment tax, taxes on entry of vehicles, and
taxes on entry of goods, while MADC and CADC collect taxes from six and four
sources respectively. LADC is the only District Council that collects
entertainment tax and entry tax on goods, while MADC is the only council that
collects animal tax, and taxes on boats are collected only in the CADC areas.
8.22 The details of own tax revenues from various sources across the three District
Councils may be examined as follows.
Own Tax Revenues of CADC
8.23 The trends in Own Tax Revenue (OTR) of the CADC and its composition in
percentage terms are shown in Tables 8.7 and 8.8 respectively. As is shown
in Table 8.7, the own tax revenue of CADC has been growing at a 9.1% annual
rate, from ₹23.23 lakh in 2010–11 to ₹74.78 lakh in 2022–23. The professions
tax has contributed more than half of the total tax revenue of CADC
throughout the period presented, and revenue collection increased from
₹17.96 lakh in 2010-11 to ₹48.61 lakh, showing robust growth of 7.6% per
annum. This tax is collected under the Chakma Autonomous District Council
(Professions, Trades, Callings, and Employment Taxation) Regulation, 1995,
and its latest amendment in 2011. It is levied annually from employees of
CADC, State and Central government employees within CADC, traders, and
contractors. Although this tax was initially progressive, with tax slabs ranging
from ₹100 for yearly incomes between ₹15,001 and ₹20,000 to ₹2,500 for
yearly incomes over ₹2,50,000, the current rates are now considered to be
inappropriate for the existing wage structure because they were last revised
many years ago. However, revision of the upper ceiling limit of ₹2,500 would
invite an amendment to clause (2) of article 276 of the Indian Constitution,
which is beyond the authority of either the State or the District Council. So,
~ 238 ~
__________________________________________________________________________________
this tax cannot be made as volatile as was anticipated, keeping in view the
economic growth resulting in higher earnings among the people. At this level,
the only effort that can be made is to improve the base through better
assessment and to raise tax rates for various classes of persons within the
ceiling limit.
Table 8.7 Trends in Own Tax Revenue of CADC

(₹ in lakh)
Professions Land Trade Taxes on
Years Total
Tax Revenue License Boat
1 2 3 4 5 6
2010-11 17.96 3.19 2.00 0.08 23.23
2011-12 23.00 7.07 4.01 0.06 34.14
2012-13 23.57 11.39 3.55 0.06 38.57
2013-14 24.00 10.75 3.00 0.15 37.90
2014-15 25.00 11.23 4.79 0.02 41.04
2015-16 32.55 12.78 6.69 0.47 52.49
2016-17 33.76 18.34 0.58 0.09 52.77
2017-18 32.25 18.34 2.50 0.46 53.55
2018-19 30.73 16.50 4.12 0.38 51.73
2019-20 36.81 17.91 6.19 0.72 61.63
2020-21 41.86 12.82 14.26 0.06 69.00
2021-22 RE 46.21 17.83 19.73 83.77
2022-23 BE 48.16 13.00 13.46 0.16 74.78
CAGR (%) 7.6 9.3 15.2 ** 9.1

Source: Budget documents of CADC
** trend coefficient is insignificant
8.24 The second-most important OTR of CADC, showing the highest volatility in
recent years, is trade license. It has increased from a mere ₹2.00 lakh in 2010–
11 to ₹6.19 lakh in 2019–20 and ₹13.46 lakh in 2022–23. The estimated
annual growth rate during this period is 15.20%. The Council issues trade
licenses through market auctions, and license holders must pay a trade
license and renewal fee every year or two, depending on the validity of the
licenses issued. Revenue from trade licenses is expected to grow with the
growth of the economy and population. It is, however, understood that non-
payment of license renewal fees by the license holder is rampant among the
trading community, basically due to the Council's inability in enforcing the
trading regulations. There is, thus, scope for enhancing revenue collection
from trade license fees by strict enforcement of the regulations to ensure better
compliance by the license holders.
~ 239 ~
__________________________________________________________________________________
Table 8.8 Composition of Own Tax Revenues of CADC in percentage
Professions
Years Land Revenue Trade License Taxes on Boat
Tax
1 2 3 4 5
2010-11 77.31 13.73 8.61 0.34
2011-12 67.37 20.71 11.75 0.18
2012-13 61.11 29.53 9.20 0.16
2013-14 63.32 28.36 7.92 0.40
2014-15 60.92 27.36 11.67 0.05
2015-16 62.01 24.35 12.75 0.90
2016-17 63.98 34.75 1.10 0.17
2017-18 60.22 34.25 4.67 0.86
2018-19 59.40 31.90 7.96 0.73
2019-20 59.73 29.06 10.04 1.17
2020-21 60.67 18.58 20.67 0.09
2021-22 RE 55.16 21.28 23.55 0.00
2022-23BE 64.40 17.38 18.00 0.21
8.25 Land revenue has been collected at varying rates from agricultural and non-
agricultural lands with Land Settlement Certificates (LSC) and Temporary
Certificates (Periodic Patta). With an annual growth rate of 9.3%, land revenue
has increased significantly from ₹3.19 lakh in 2010-11 to ₹13.00 lakh in 2022-
23. Although this is the most stable OTR source, revenue collection is heavily
dependent on rate revisions and assessment efficiency. It should be noted that
the Council has not collected any Stamp Duties or Registration Fees for
transactions on properties. Land, as one of the most valuable assets in a
household, is supposed to be subject to Stamp duties and Registration fees,
particularly during the transfer of ownership. As a result, the District Council
may explore the possibility of introducing Stamp duty & Registration fees
within its jurisdiction, which could significantly improve the Council's own tax
revenue.
8.26 Because of its favourable topography for being in riverine areas, the CADC is
the only District Council that levies the tax on boat. However, revenue from
boats is insignificant. As a result, the Council has to put in more effort to
maximise the revenue potential of the inland water transport system under its
jurisdiction. More effective collection of the tax on boat coupled with better
regulation may result in higher revenue earnings. Furthermore, the possibility
of levying taxes related to land transportation, such as toll tax and taxes on
entry of goods, may be investigated.
~ 240 ~
__________________________________________________________________________________
Own Tax Revenues of LADC
8.27 Tables 8.9 and 8.10 show the trends in the LADC's Own Tax Revenue and its
composition in percentage terms. As previously stated, the District Council
has seven tax revenue sources: professions tax, land revenue, motor vehicle
tax, entertainment tax, vehicle entry tax, tax on entry of goods, and trade
licences. It should be noted that the Revenue & Settlement Department of
LADC is in charge of collecting these taxes. As a result, the budget documents
do not include separate data for trade licences, which are reportedly recorded
under the land revenue head. Table 8.9 shows that the LADC's OTR has
steadily increased from ₹55.40 lakh in 2010-11 to ₹124.80 lakh in 2017-18
and ₹156.60 lakh in 2022-23, with a 9.6% annual growth rate.
Table 8.9 Trends in Own Tax Revenue of LADC
(₹ in lakh)
Professions Tax
Motor Vehicles
Entertainment
Land Revenue
Entry Tax on
Entry Tax on
Vehicles
Goods
Years
Total
Tax
tax
1 2 3 4 5 6 7 8
2010-11 38.41 15.38 1.58 55.37
2011-12 48.39 15.34 1.61 65.34
2012-13 50.30 18.98 1.67 70.95
2013-14 53.87 22.38 1.70 77.95
2014-15 58.84 24.80 1.50 85.14
2015-16 58.07 26.54 1.29 1.29 87.19
2016-17 61.22 31.59 2.05 2.10 96.96
2017-18 63.07 57.21 2.26 2.26 124.80
2018-19 64.74 67.06 1.97 1.97 135.74
2019-20 71.14 51.52 2.17 2.17 127.00
2020-21 75.66 69.88 2.03 0.49 3.28 3.28 154.62
2021-22RE 76.34 71.05 3.20 1.53 4.32 4.32 160.76
2022-23BE 76.00 66.50 3.10 2.00 4.50 4.50 156.60
CAGR (%) 5.1 15.9 9.8 ** 9.0 ** 9.6

Source: Budget documents of LADC
** trend co-efficient is not significant
~ 241 ~
__________________________________________________________________________________
Table 8.10 Composition of Own Tax Revenues of LADC in percentage
Motor Vehicles
Entertainment
Land Revenue
Entry Tax on
Entry Tax on
Professions
Vehicles
Goods
Years
Tax
Tax
tax
1 2 3 4 5 6 7
2010-11 69.37 27.78 0.00 0.00 2.85 0.00
2011-12 74.06 23.48 0.00 0.00 2.46 0.00
2012-13 70.89 26.75 0.00 0.00 2.35 0.00
2013-14 69.11 28.71 0.00 0.00 2.18 0.00
2014-15 69.11 29.13 0.00 0.00 1.76 0.00
2015-16 66.60 30.44 1.48 0.00 1.48 0.00
2016-17 63.14 32.58 2.11 0.00 2.17 0.00
2017-18 50.54 45.84 1.81 0.00 1.81 0.00
2018-19 47.69 49.40 1.45 0.00 1.45 0.00
2019-20 56.02 40.57 1.71 0.00 1.71 0.00
2020-21 48.93 45.19 1.31 0.32 2.12 2.12
2021-22 RE 47.49 44.20 1.99 0.95 2.69 2.69
2022-23 BE 48.53 42.46 1.98 1.28 2.87 2.87
8.28 To begin, professions tax and land revenue are the primary contributors,
accounting for more than 90% of LADC's total tax revenue across the years.
Land revenue is highly volatile, growing at a 15.9% annual rate from ₹15.38
lakh in 2010-11 to ₹66.50 lakh in 2022-23, while professions tax revenue grew
at a 5.1% annual rate during the same period. The Lai Autonomous District
Council (Professions, Trades, Callings, and Employment Taxation) Regulation,
2000 is the enabling regulation for the levy of professions tax. As previously
observed in the case of CADC, revision of the tax rates within the
Constitutional ceiling limit of ₹2,500 for different categories of persons
coupled with better assessment is essential to augment receipts from the tax.
8.29 Second, the Revenue Department assesses and collects land revenue in
accordance with the Lai Autonomous District Council (Revenue Assessment)
Regulation, 2000, as amended from time to time. Different rates are levied on
different types of land, which are broadly classified as agricultural and non-
agricultural. Given price escalations, the rates and charges are reportedly
revised on a regular basis. Under regulation 4 of this Regulation, house tax is
levied on all buildings including shops and stalls other than Government and
~ 242 ~
__________________________________________________________________________________
District Council buildings. Notably, tax on buildings is also levied by the

Council under regulation 6 of the aforesaid Regulation on multiple storey
pucca-buildings, semi-pucca buildings and kutcha houses, at a fixed rate of
₹50, ₹30, and ₹10 per floor, respectively, in addition to the house tax, shop or
stall tax. Property Tax per se as levied and collected within the municipal
areas, however, has not yet been levied within the jurisdiction of the District
Council. Further, a trade license is imposed on a trading business within the
jurisdiction of the LADC at the rate of ₹150 as a license fee for one year and
₹100 as a renewal fee. The combined revenue receipt of the Revenue
Department from these sources has increased consistently from a mere ₹15.38
lakh in 2010-11 to a high of ₹66.50 lakh in 2022-23, registering a compound
annual growth of 15.9%.
8.30 Third, while the District Council is yet to implement motor vehicle taxation
regulations, the LADC collects revenue from motor vehicles under the Lai
Autonomous District (Control of Vehicles Parking) Regulation, 2012. The total
revenue receipt from this source has increased from ₹1.29 lakh in 2015-16 to
₹3.10 lakh in 2022–23, with 9.8% annual growth, adding a certain amount to
the Council’s exchequer. At the same time, LADC also levies an entry tax on
vehicles entering the district for trade or business under the LADC (Tax on
Entry of Vehicles into the Autonomous District) Regulation, 2008. The entry
tax for different types of vehicles ranges from ₹10 to ₹30 per vehicle. From this
source, the Council has received consistent and growing revenue. In fact, the
revenue receipt has been increasing at an annual rate of 9.0% during the last
12 years, from ₹1.58 lakh in 2010–11 to ₹4.50 lakh in 2022–23.
8.31 Fourth, it is worth noting that LADC is the only District Council in Mizoram
that levies a tax on goods entering the market within its jurisdiction. It is
collected by the Council's Taxation Department under the Lai Autonomous
District Council (Entry of Goods into Market Tax) Regulation, 2019. It is levied
on 69 scheduled goods that enter the market for sale. This is levied on any
dealer or individual who brings such goods into the market for sale at the
specified rates, which range from 1% to 3% ad valorem based on the GST/VAT
invoice.
8.32 Fifth, the Lai Autonomous District Council (Entertainment Tax) Regulation,
2019 enables the levy of an entertainment tax on local cable TVs from 2020-
21 at a rate of ₹20 per month per subscriber. The revenue receipts from
entertainment tax for fiscal year 2021-22 stands at ₹1.53 lakh.
8.33 LADC has also framed motor vehicle taxation regulations, viz., the Lai
Autonomous District Council (Motor Vehicle Taxation) Regulation, 2013.
However, due to issues with delegation of functions from the State
Government, the regulations have yet to be implemented.
~ 243 ~
__________________________________________________________________________________
8.34 Since 2020-21, the introduction of two new taxes, namely the entertainment
tax and the entry tax on goods, has resulted in a sizeable increase in own tax
revenue and improved the volatility of the Council's total tax revenue.
Meanwhile, it is clear that there is room to increase LADC's own tax revenue
by introducing new taxes and rationalising existing ones. Levying property tax
as an enhanced version of existing building tax appears to be the best option.
Greater efficiency in assessment and revenue collection can result in an
upsurge in own tax revenues, even if the rates of the entry tax are reduced to
avoid possible cascading effects on retail prices, as some members of the local
business sector believe.
Own Tax Revenues of MADC
8.35 Tables 8.11 and 8.12 show the trends in the MADC's Own Tax Revenue and
its composition in percentage terms. The tables show that the total tax
revenue receipts of the MADC have been increasing consistently at a rate of
11.3% during the years under consideration, from ₹35.26 lakh in 2010–11 to
₹73.14 lakh in 2015–16 and ₹123.36 lakh in 2022–23. Unlike other District
Councils, MADC's contribution to total tax revenue from professions tax is
very high, at 80.83% in 2010-11, but it has gradually declined to 74.09% in
2021-22. This is followed by land revenue, which has increased from ₹3.70
lakh (10.49% of total OTR) in 2010–11 to ₹24.17 lakh (19.59% of OTR) in
2022–23, at an annual growth rate of 27.1%. The contribution from
professions tax and land revenue exceeds 90% of the Council's total own tax
revenue across the years under consideration except for the years 2016-17,
2018-19, 2019-20 and 2022-23. It should be noted that the Land Revenue
and Settlement Department has been tasked with collecting tax revenue from
these sources. With the changing of the accounting system from time to time,
the existence of cross-head bookings of tax revenue cannot be ruled out, i.e.
the booking of other tax revenues in another tax head (e.g. recording income
from trade licences under the land revenue head) or reporting consolidated
revenue collection without proper tax head-wise classification. As a result, the
percentage contribution of the five revenue sources to total tax revenues is
assumed to have fluctuated. A brief analysis of the own tax revenues is
presented below.
~ 244 ~
__________________________________________________________________________________
Table 8.11 Trends in Own Tax Revenue of MADC

(₹ in lakh)
Entry Tax
Professions Land Trade Animal
Years on Total
Tax Revenue License Tax
Vehicles
1 2 3 4 5 6 7
2010-11 28.50 3.70 1.50 1.56 35.26
2011-12 31.50 2.03 1.50 1.91 36.94
2012-13 49.80 4.50 1.50 2.54 58.34
2013-14 72.07 2.33 1.60 2.88 78.88
2014-15 72.94 3.88 4.14 4.24 85.20
2015-16 61.35 5.47 1.68 1.34 3.30 73.14
2016-17 58.03 6.63 1.70 3.73 3.57 73.66
2017-18 70.41 9.48 2.00 5.00 86.89
2018-19 75.20 9.68 5.20 2.00 5.00 97.08
2019-20 75.20 10.80 5.83 2.19 3.67 97.69
2020-21 76.66 148.61 3.44 1.20 5.02 234.93
2021-22 RE 80.00 19.50 5.03 2.50 0.95 107.98
2022-23 BE 86.50 24.17 5.19 2.50 5.00 123.36
CAGR (%) 7.6 27.1 12.7 ** ** 11.3
Source: Budget documents of MADC
** trend coefficient is insignificant
Table 8.12 Composition of Own Tax Revenues of MADC in percentage
Profession Land Trade Entry Tax

Years Animal Tax
Tax Revenue License on Vehicles
1 2 3 4 5 6
2010-11 80.83 10.49 4.25 4.42 0.00
2011-12 85.27 5.50 4.06 5.17 0.00
2012-13 85.36 7.71 2.57 4.35 0.00
2013-14 91.37 2.95 2.03 3.65 0.00
2014-15 85.61 4.55 4.86 4.98 0.00
2015-16 83.88 7.48 2.30 1.83 4.51
2016-17 78.78 9.00 2.31 5.06 4.85
2017-18 81.03 10.91 0.00 2.30 5.75
2018-19 77.46 9.97 5.36 2.06 5.15
2019-20 76.98 11.06 5.97 2.24 3.76
2020-21 32.63 63.26 1.46 0.51 2.14
2021-22 RE 74.09 18.06 4.66 2.32 0.88
2022-23 BE 70.12 19.59 4.21 2.03 4.05
~ 245 ~
__________________________________________________________________________________
8.36 First, the professions tax, levied and collected under the Lakher District
Council (Professions, Trades, Callings, and Employment Taxation) Regulation,
1973, is the single most important tax levied and collected by MADC. The
amount collected increased at a 7.6% annual rate from ₹28.50 lakh in 2010-
11 to ₹86.50 lakh in 2022-23.
8.37 Second, land revenue also shows significant annual growth of more than
27.1%. The receipts from land revenue have registered a significant jump in
2020-21 (i.e., ₹148.61 lakh) from the normal trend following the collection of
cess by the Council on the amount awarded for acquisition of land within the
territorial jurisdiction of the Council as per the provisions of the Mara
Autonomous District Council (Land and Revenue) Act, 2018. With the release
of compensation for the widening of National Highways No-54, the land
revenue receipt increased to ₹148.61 lakh in 2020-21, up from ₹10.80 lakh in
2019-20. The following year, there was a sharp decline in land revenue.
However, revenue collection remained high when compared to revenue in
2019-20. As can be seen, the implementation of the new land law, which
allows for the collection of cess on land compensation, has a clear impact on
increasing the Council's own tax revenue.
8.38 As previously stated, the Land Revenue & Settlement Department collects
building tax in accordance with the Lakher District Council (Revenue
Assessment) Regulation, 1973. Building tax is set at ₹5 per private house and
₹15 per shop or stall. The Council has begun levying fees on building
registration and annual building tax at progressive rates via Notification
No.E.11019/MADC/LR&S/018 dated 07.02.2022. Though the Council is still
assessing this tax, the MADC's effort to raise additional tax revenues is
commendable. In many ways, this tax is similar to the property tax levied by
the Aizawl Municipal Corporation. Its implementation, which will have a
significant impact on total tax revenue collection, is expected to happen sooner
or later.
8.39 Under the Mara Autonomous District Council (Control of Vehicles Parking and
Collection of Parking Fees) Regulation, 2014, the Council also collects parking
fees. Although collected by the MADC's Land Revenue & Settlement
Department, the two taxes, namely building tax and parking fees, are difficult
to separate from land revenue because they are not reflected in the budget
document. As a result, these are assumed to be included in land revenue
receipts.
8.40 Third, though the MADC does not collect tax on the entry of goods into the
market, it does collect tax on the entry of vehicles under the provisions of the
Mara Autonomous District Council (Tax on Entry of Vehicles into the
Autonomous District) Regulation, 2005. Taxes are collected on vehicles
entering the District Council area for trade or business. The rates specified
under the regulation are ₹20 for light vehicles, ₹30 for medium vehicles, and
~ 246 ~
__________________________________________________________________________________
₹50 for heavy vehicles. The revenue received from this tax was ₹1.56 lakh in
2010–11 which subsequently increased to ₹2.50 lakh in 2021–22.
8.41 Fourth, trade license, though small in its amount, is another own tax revenue
source from which the District Council receives regular income. It is collected
under the Mara Autonomous District Council (Trading) Regulation, 2012. A
trade license is issued to qualified traders for a period of up to two years upon
payment of a licence fee of at least ₹1,000, and the licence is renewable upon
payment of the required fee. Income from trade licences has increased at an
annual rate of 12.7%, from ₹1.50 lakh in 2010–11 to ₹5.19 lakh in 2022–23.
While trade licences are issued by the Revenue Department to traders with
proper business establishments, hawker's licences are also issued by the
Local Administration Department for three months and are renewable. This
indicates that a portion of the revenue received from trade licences is not
recorded as tax revenue, but is instead reported as non-tax revenue by the
relevant department. If the hawker’s licence fee was included, the tax revenue
from trade licences would be slightly higher.
8.42 Fifth, the only District Council that collects animal tax is MADC. This is done
in accordance with the Lakher Autonomous District Council (Animal Control
and Taxation) Act, 1983. Despite the fact that the rate was ₹0.50 per adult
animal and ₹0.25 per young animal, the revenue received was quite
substantial. The domestication of animals has deep roots in the lives of the
tribal people in the Council area, so the animal tax is thought to have a
broader base. Animal-rearing households could be found in both rural and
urban areas of the district.
8.43 Since its inception, the MADC has made efforts to raise its own tax revenue
by levying local taxes through appropriate regulations on a regular basis. The
main sources of revenue are land revenue and professions tax. The Councils'
efforts are visible in the regulations they pass on a regular basis, but the
proceeds of some tax items are not clearly reflected in the budget documents.
Consolidating or combining data from different tax items into one head (e.g.
booking other tax items under the land revenue head, etc.) has hampered
effective taxation analysis. As a result, it is recommended that each item of
tax levy within the District Council be assigned to the appropriate head
of account in the budget books. Furthermore, the possibility of
introducing an entertainment tax and a tax on the entry of goods into
the market may be explored, as well as expediting the assessment
process of taxes on buildings in order to increase the Council's revenue
base.
Own Non-Tax Revenues
8.44 The District Councils also collect revenue from non-tax sources such as rents,
fees, user charges, and so on. Rent from properties (Council quarters, houses,
~ 247 ~
__________________________________________________________________________________
etc.), administrative services, general economic services, and forest and

mineral resources are the major sources in terms of amount and consistency
in all District Councils. The own non-tax revenue (ONTR) from forest and
mineral resources has been the most consistent and important source of
revenue in the three District Councils during the period under consideration.
Revenue from sand extraction or mining from the river and riverine areas
within the District Council is the main item of forest and mineral resources in
the three Councils. The Mahal system is used by District Councils, and yearly
licence auctions are held to extract sand from rivers. Successful bidders who
deposit the required amount in the District Council treasury gain the right to
collect fees from anyone doing sand extraction for market sale by installing
check gates in appropriate locations along the road connecting major rivers.
Those planning to establish a stone quarry on their property must apply for a
six-month permit from the District Council and pay the required fees. It is the
District Council's responsibility to ensure that stone chips and other quarry
products entering the market come only from licence holders. Other forest
products such as timber, minor forest products, anchiri, and so on were also
collected by District Councils in the form of a transit pass or other
miscellaneous charges. They cannot go far in collection of forest produce
because an infringement of the Supreme Court's judgement on Forest
Conservation Act is undesirable.
8.45 Tables 8.13 (CADC), 8.14 (LADC) and 8.15 (MADC) highlight the sources of
non-tax revenue and revenue collection trends in the three District Councils
from the year 2010-11 up to 2022-23.
8.46 In the case of the Chakma Autonomous District Council, the collection of own
non-tax revenues increased more than 12 times from ₹4.77 lakh in 2010-11
to ₹57.59 lakh in 2022-23, with an annual growth rate of 13.8% during the
years under consideration.
~ 248 ~
__________________________________________________________________________________
Table 8.13 Trends in Own Non-Tax Revenue of CADC

(₹ in lakh)
Administrative
educational
Rents from
properties
Fees from
economic
resources
Fisheries
Forest &
services
services
services
General
mineral
Others
Years
Total
1 2 3 4 5 6 7 8 9
2010-11 2.83 0.02 1.45 0.47 4.77
2011-12 7.68 1.38 1.18 1.18 11.42
2012-13 8.43 9.43 1.17 1.00 11.76 31.79
2013-14 12.24 12.36 1.55 0.75 26.90
2014-15 11.23 0.14 3.88 0.07 8.71 0.16 24.19
2015-16 10.01 0.53 0.01 3.70 0.14 18.00 32.39
2016-17 9.00 1.75 0.05 7.10 28.71 3.68 50.29
2017-18 11.44 22.24 2.50 13.06 49.24
2018-19 15.27 3.53 0.01 4.12 10.26 2.04 35.23
2019-20 15.59 5.99 0.05 6.19 0.16 25.00 52.98
2020-21 6.42 7.65 0.05 3.01 14.54 31.67

2021-22
2.36 6.28 0.11 10.20 14.22 33.17
RE
2022-23
12.96 6.46 0.07 26.6 0.50 11.00 57.59
BE
8.47 The Lai Autonomous District Council's collection of own non-tax revenues
nearly quadrupled from ₹26.05 lakh in 2010-11 to ₹103.40 lakh in 2022-23,
representing a 10.5% annual growth rate during this period.
~ 249 ~
__________________________________________________________________________________
Table 8.14 Trends in Own Non-Tax Revenue of LADC

(₹ in lakh)
Administrative
educational
Rents from
properties
Fees from
economic
resources
Fisheries
Forest &
services
services
services
General
mineral
Years
Total
1 2 3 4 5 6 7 8
2010-11 5.09 0.04 1.80 2.29 16.83 26.05
2011-12 4.04 0.10 0.26 13.74 29.60 47.74
2012-13 7.98 0.09 0.15 10.70 35.92 54.84
2013-14 8.05 0.16 0.39 5.63 36.58 50.81
2014-15 7.21 0.16 0.29 5.00 35.56 48.22
2015-16 9.35 0.28 0.30 4.17 39.34 53.44
2016-17 10.05 0.10 0.30 3.65 41.26 55.36
2017-18 12.61 0.30 0.30 4.18 52.83 70.22
2018-19 10.44 0.22 0.20 4.79 46.45 62.10
2019-20 52.45 0.21 0.43 7.97 58.51 119.57
2020-21 43.64 0.23 0.22 2.71 67.70 114.50

2021-22
18.69 0.32 0.33 5.43 4.50 69.58 98.85
RE
2022-23
29.00 0.40 0.25 13.75 60.00 103.40
BE
8.48 The own non-tax revenues of the Mara Autonomous District Council increased
more than four times, from ₹23.41 lakh in 2010–11 to ₹97.83 lakh in 2022–
23, at an annual growth rate of 12.1% during the period under consideration.
~ 250 ~
__________________________________________________________________________________
Table 8.15 Trends in Own Non-Tax Revenue of MADC

(₹ in lakh)
Administrative
educational
Rural water
Rents from
properties
Fees from
economic
resources
Fisheries
Forest &
services
services
services
General
mineral
Others
supply
Years
Total
1 2 3 4 5 6 7 8 9 10
2010-11 3.16 0.03 0.77 18.96 0.49 23.41
2011-12 2.43 0.04 0.80 34.95 38.22
2012-13 2.48 0.03 1.10 21.17 0.30 25.08
2013-14 6.41 0.10 1.69 16.00 1.03 25.23
2014-15 9.17 0.20 3.67 17.00 30.04
2015-16 13.67 0.21 0.32 13.65 1.34 4.36 33.55
2016-17 9.58 0.10 0.60 11.28 3.73 3.01 0.50 28.80
2017-18 15.31 0.21 2.00 18.73 2.00 6.30 0.13 44.68
2018-19 21.02 0.04 2.00 18.50 6.42 2.39 6.00 56.37
2019-20 24.86 0.12 2.00 24.61 2.19 9.32 6.00 0.60 69.70
2020-21 4.29 0.15 2.00 34.34 3.07 10.63 7.50 0.09 62.07
2021-22
3.99 0.18 2.50 55.69 3.50 10.63 8.49 0.09 85.07
RE
2022-23
10.00 0.20 3.00 60.00 4.00 10.63 10.00 97.83
BE
Own Revenue Receipts
8.49 The sum of the own tax revenues and own non-tax revenues represents the
own revenue receipts of the District Councils. The Charts 8.4, 8.5 and 8.6
show the trends in collection of own revenue receipts of the CADC, LADC and
MADC respectively from the year 2010-11 up to the year 2022-23.
8.50 CADC's own revenues have increased from ₹28.00 lakh to ₹132.37 lakh during
this period, with an annual growth rate of 10.4%. Simultaneously, ONTR's
contribution to total own revenue has increased significantly, from 17.04% to
43.51%, with an overall average of 37.8% during this period.
~ 251 ~
__________________________________________________________________________________
Chart 8.4 Trends in Own Revenue Receipts of CADC
140.00
132.37
120.00 102.79 116.94
114.61
100.00 101.22 100.67
86.96
₹ in lakh
64.80 84.88
80.00
70.36 65.23
60.00
83.77
28.00 45.56
74.78
69.00
40.00
61.63
57.59
53.55
52.98
52.49
51.73
50.93
50.29
49.24
34.14
11.42
38.57
31.79
37.90
26.90
41.04
24.19
32.39
35.23
31.67
33.17
4.77
23.23
20.00
0.00
Own Tax Revenue Own Non Tax Revenue Own Revenue Receipts
8.51 LADC has the lowest revenue growth amongst the three District Councils,
registering an annual growth rate of 9.8% during the period under
consideration. The total own revenue increased from ₹81.42 lakh in 2010-11
to ₹255.50 lakh in 2022-23, with non-tax revenues accounting for 38.9% of
total own revenue on average.
Chart 8.5 Trends in Own Revenue Receipts of LADC
300.00 265.84 255.50
250.00 246.57 255.29
200.00 195.02
₹ in lakh
140.63
197.84
150.00 113.08 128.76 152.32
125.79 133.36
81.42
156.44
100.00
152.10
151.34
135.74
127.00
124.80
119.57
114.50
103.40
98.85
96.96
87.19
85.14
55.37
26.05
65.34
47.74
70.95
54.84
77.95
50.81
48.22
53.44
55.36
70.22
62.10
50.00
0.00
8.52 MADC's total own revenue increased by 11.6% per year, from ₹58.67 lakh in
2010-11 to ₹221.19 lakh in 2022-23. MADC has the lowest average
contribution of own non-tax revenues to total own revenue, at 34.7%. Notably,
both own tax revenue and own non-tax revenues in the District Council
increased by more than 10.0% during the period under consideration.
~ 252 ~
__________________________________________________________________________________
Chart 8.6 Trends in Own Revenue Receipts of MADC
350.00
300.00 297.00
250.00 221.19
₹ in lakh
200.00 75.16 153.45 193.05

58.67 83.42 115.24 102.46 167.39
234.93
150.00
104.11 106.69 131.57
107.98
123.36
100.00
35.26
23.41
36.94
38.22
58.34
25.08
78.88
25.23
85.20
30.04
73.14
33.55
73.66
28.80
86.89
44.68
97.08
56.37
97.69
69.70
62.07
85.07
97.83
50.00
0.00
8.53 Chart 8.7 summarises the trends in own revenue receipts of the three District
Councils in aggregate, which include own tax revenue (OTR) and own non-tax
revenues (ONTR). Non-tax revenue collection, while lower than tax revenue,
has shown double-digit growth of 11.4% during the period under
consideration and has in fact, outpaced tax revenue growth in all District
Councils over time. As a result, they are more volatile than tax revenues,
implying that there is room for further growth with an improvement in effective
review mechanisms and collection efficiency. In aggregate, the own revenue
receipts of the District Councils have grown at an annual rate of 10.5% since
2010-11 until 2022-23.
Chart 8.7 Trends in Own Revenue Receipts of District Councils – in aggregate
609.06
565.28
663.51
528.57
455.27
438.25
429.38
356.00
350.24
348.19
332.20
313.83
297.67
286.32
284.55
279.57
₹ IN LAKH
265.24
258.82
242.25
233.80
221.55
217.09
212.82
211.38
208.24
194.73
168.09
167.86
164.14
153.70
136.42
134.45
119.38
113.86
111.71
102.94
102.45
97.38
54.23
Source: Budget documents of the three District Councils
~ 253 ~
__________________________________________________________________________________
Measuring Revenue Efforts
8.54 Following an examination of the various sources of own tax and non-tax
revenues, trends in revenue collection over time, and efforts of the District
Councils to mobilise their own revenue sources, it is considered worthwhile to
examine the outcomes of the revenue efforts using measurable parameters.
The revenue efforts are measured using the ratios of own tax revenue (OTR),
own non-tax revenue (ONTR), and total own revenue (OR) to the base
parameters such as total budget (total expenditure), population, and transfer
of funds from the State Government. To chalk out clear pictures of the
performances of each District Council in the three measures, average
performances are calculated. Accordingly, tax effort is shown by the ratio of
OTR, ONTR, and OR to the base parameters that would indicate the tax efforts,
non-tax revenue efforts, and own revenue efforts, respectively. As the period
of the 1st State Finance Commission of Mizoram and the 14th Union Finance
Commission started in the year 2015-16, this year has been taken as the
starting point for analysis of the revenue efforts undertaken.
8.55 It is pertinent to mention that population data is available for two census
years, 2001 and 2011, and no population census has been conducted
thereafter. As such, the Commission relies on projected population data in all
other years. The projection of the population is made in two steps. First, the
annual growth rate (r) of the population between Census 2001 and Census
2011 is estimated by the compound annual growth rate (CAGR) method as
given in equation [1]. Second, the CAGR so calculated is adopted as the growth
rate to project for the remaining years using the exponential growth equation
[2].
1
𝑃2011 10
𝐶𝐴𝐺𝑅 (𝑟) = ( ) −1 [1]
𝑃2001
𝑃𝑡 = 𝑃0 𝑒 𝑟𝑡 [2]
where Pt is the projected population in year “t”, P0 is the base year population
(i.e., 2011 census population), and “r” is the compound annual growth rate
between the two census.
8.56 The results are presented in Table 8.16 (CADC), Table 8.17 (LADC), and Table
8.18 (MADC). For the sake of simplicity, the average scores of the District
Councils in each of the indicators over the eight years after 2015–16 are taken
as the basis for interpretation.
~ 254 ~
__________________________________________________________________________________
Table 8.16 Revenue efforts of CADC
1. Own Tax and Non-Tax Revenues as Percentage of Total Expenditure (%)

Own Non-Tax
Years Own Tax Revenue Total
Revenue
2015-16 0.78 0.48 1.26
2016-17 0.76 0.75 1.52
2017-18 0.63 0.57 1.20
2018-19 0.51 0.35 0.86
2019-20 0.54 0.46 1.00
2020-21 0.65 0.30 0.95
2021-22RE 0.71 0.28 0.99
2022-23BE 0.47 0.36 0.83
Average 0.653 0.457 1.110
2. Own Tax and Non-Tax Revenues Per Population (₹/Person)
Own Non-Tax
Revenue
2015-16 46 9 55
2016-17 66 22 88
2017-18 72 59 132
2018-19 69 49 118
2019-20 73 43 116
2020-21 90 56 146
2021-22RE 85 84 170
2022-23BE 87 80 168
Average 72 46 118
3. Own Tax and Non-Tax Revenues as Percentage of Fund Transfer from the State
(%)
Own Non-Tax
Revenue
2015-16 0.37 0.08 0.44
2016-17 0.51 0.17 0.68
2017-18 0.44 0.36 0.80
2018-19 0.38 0.27 0.64
2019-20 0.36 0.21 0.57
2020-21 0.49 0.30 0.80
2021-22RE 0.43 0.43 0.86
2022-23BE 0.48 0.44 0.92
Average 0.426 0.260 0.685
~ 255 ~
__________________________________________________________________________________
Table 8.17 Revenue efforts of LADC

Own Non-Tax
Revenue
2015-16 0.73 0.45 1.18
2016-17 0.80 0.46 1.26
2017-18 0.80 0.45 1.25
2018-19 0.76 0.35 1.11
2019-20 0.66 0.62 1.28
2020-21 0.77 0.59 1.36
2021-22RE 0.75 0.48 1.23
2022-23BE 0.72 0.49 1.22
Average 0.755 0.484 1.240
Own Non-Tax
Revenue
2015-16 106 65 171
2016-17 114 65 179
2017-18 142 80 222
2018-19 150 68 218
2019-20 136 128 263
2020-21 157 118 275
2021-22RE 157 99 256
2022-23BE 148 100 248
Average 137 89 226
(%)
Own Non-Tax
Revenue
2015-16 0.49 0.23 0.72
2016-17 0.54 0.39 0.93
2017-18 0.47 0.36 0.83
2018-19 0.46 0.30 0.75
2019-20 0.45 0.26 0.71
2020-21 0.45 0.28 0.73
2021-22RE 0.47 0.27 0.74
2022-23BE 0.60 0.34 0.94
Average 0.476 0.298 0.774
~ 256 ~
__________________________________________________________________________________
Table 8.18 Revenue efforts of MADC

Own Non-Tax
Revenue
2015-16 0.71 0.33 1.04
2016-17 0.65 0.25 0.90
2017-18 0.67 0.34 1.01
2018-19 0.64 0.37 1.01
2019-20 0.60 0.43 1.03
2020-21 1.45 0.38 1.84
2021-22RE 0.62 0.49 1.10
2022-23BE 0.71 0.56 1.27
Average 0.763 0.371 1.134
Own Non-Tax
Revenue
2015-16 58 38 96
2016-17 60 62 121
2017-18 92 40 132
2018-19 122 39 162
2019-20 130 46 176
2020-21 109 50 160
2021-22RE 108 42 151
2022-23BE 125 64 190
Average 97 45 142
(%)
Own Non-Tax
Revenue
2015-16 0.65 0.30 0.95
2016-17 0.61 0.24 0.85
2017-18 0.57 0.30 0.87
2018-19 0.57 0.33 0.90
2019-20 0.52 0.37 0.89
2020-21 1.22 0.32 1.55
2021-22RE 0.53 0.41 0.94
2022-23BE 0.60 0.47 1.07
8.57 First, MADC has the highest tax efforts relative to the two base parameters:
total expenditure and revenue transfer from the State Government. It is shown
that the average tax revenue over the last eight years in MADC is 0.763% of
~ 257 ~
__________________________________________________________________________________
the Council’s total expenditure, while it is 0.666% of the fund transfer from
the State Government. At the same time, the total tax revenue is estimated to
be ₹97 per population in the District Council. MADC is followed by LADC,
where the tax revenue is 0.755% and 0.476% of the total expenditure and
State fund transfer, respectively, while the tax revenue collection is estimated
to be ₹137 per person, which is the highest among the three District Councils.
Meanwhile, tax effort is seen to be the lowest in CADC in all the measures
scoring 0.653%, 0.426%, and ₹72 of the total expenditure, State fund transfer,
and per population, respectively.
8.58 Second, the non-tax revenue efforts of the District Councils are also presented
in the aforesaid Tables. Of the three District Councils, LADC has made better
efforts in terms of the total expenditure (0.485%) and population (₹89/person)
than other District Councils, while MADC has performed better in terms of
fund transfers from the State Government (0.324%).
8.59 Third, LADC has the highest own revenue efforts among the three District
Councils in terms of expenditure (1.240%) and population (₹226/person),
while MADC has the highest efforts relative to State fund transfer (0.990%).
8.60 To supplement the measures of revenue efforts, the fiscal dependency ratios
have been calculated for each District Council and presented in Table 8.19.
The fiscal dependency of an individual District Council is calculated by
dividing the transfers from the State Government by total revenue receipt.
Symbolically, the fiscal dependency index (FDI) is calculated over time using
the following formula:
𝑆𝑡𝑎𝑡𝑒 𝐹𝑢𝑛𝑑 𝑇𝑟𝑎𝑛𝑠𝑓𝑒𝑟 𝑡𝑜 𝑎 𝐷𝑖𝑠𝑡𝑟𝑖𝑐𝑡 𝐶𝑜𝑢𝑛𝑐𝑖𝑙

𝐹𝐷𝐼 = × 100
𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝑅𝑒𝑐𝑒𝑖𝑝𝑡 (𝑂𝑤𝑛 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 + 𝑆𝑡𝑎𝑡𝑒 𝐹𝑢𝑛𝑑 𝑇𝑟𝑎𝑛𝑠𝑓𝑒𝑟)
At the same time, fiscal autonomy index (FAI) is calculated as a complement

to FDI in the above.
𝑆𝑡𝑎𝑡𝑒 𝐹𝑢𝑛𝑑 𝑇𝑟𝑎𝑛𝑠𝑓𝑒𝑟 𝑡𝑜 𝑎 𝐷𝑖𝑠𝑡𝑟𝑖𝑐𝑡 𝐶𝑜𝑢𝑛𝑐𝑖𝑙

𝐹𝐴𝐼 = (1 − 𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝑅𝑒𝑐𝑒𝑖𝑝𝑡 (𝑂𝑤𝑛 𝑅𝑒𝑣𝑒𝑛𝑢𝑒+𝑆𝑡𝑎𝑡𝑒 𝐹𝑢𝑛𝑑 𝑇𝑟𝑎𝑛𝑠𝑓𝑒𝑟)) × 100
~ 258 ~
__________________________________________________________________________________
Table 8.19 Fiscal Dependency Index of the three District Councils in %
Years CADC LADC MADC Average
2015-16 98.7 98.8 98.9 98.8
2016-17 98.5 98.8 99.1 98.8
2017-18 98.8 98.7 99.0 98.9
2018-19 99.1 98.9 99.0 99.0
2019-20 99.0 98.7 99.0 98.9
2020-21 99.1 98.6 98.2 98.6
2021-22 RE 99.0 98.8 98.9 98.9
2022-23 BE 98.8 98.8 98.7 98.8
Average 98.883 98.751 98.848 98.827
8.61 Table 8.19 shows that the financial dependency of the three District Councils
is as high as 98.8%. That is, these District Councils depend on the State
Government's fund transfer for almost 99% of their total expenditure. Of the
three District Councils, LADC has the lowest dependency on the State
Government, at 98.751% of the total expenditure, followed by MADC, which
has a dependency of 98.848% on the State Government, while CADC has the
highest dependency (98.883%).
8.62 On the other hand, the fiscal autonomy index (complement of the fiscal
dependency index) as presented in Table 8.20 shows that LADC has the
highest fiscal autonomy, as the own revenue of this District Council
contributed more than 1.2% of the total expenditure needs, while the
contribution of own revenue to the total expenditure is 1.15% and 1.1% in
MADC and CADC, respectively.
Table 8.20 Fiscal Autonomy Index of the three District Councils in %
Years CADC LADC MADC Average
2015-16 1.3 1.2 1.1 1.2
2016-17 1.5 1.2 0.9 1.2
2017-18 1.2 1.3 1.0 1.1
2018-19 0.9 1.1 1.0 1.0
2019-20 1.0 1.3 1.0 1.1
2020-21 0.9 1.4 1.8 1.4
2021-22RE 1.0 1.2 1.1 1.1
2022-23BE 1.2 1.2 1.3 1.2
Average 1.117 1.249 1.152 1.173
~ 259 ~
__________________________________________________________________________________
Impact of the Finance Commissions on the District Councils
8.63 The year 2015-16 was a landmark in the history of fiscal federalism in
Mizoram since it marked the very first year of the award period of the 1st State
Finance Commission of Mizoram, which incidentally coincided with the
starting year of the 14th Finance Commission (FC-XIV). The implementation of
the FC-XIV recommendations altered the contours of the fiscal relations
between the Centre and the States, giving the latter greater financial
autonomy. In the meantime, the implementation of the recommendations of
the 1st State Finance Commission until 2019–20 sowed the seed of rule-based
fiscal relations between the State Government and local bodies and the
District Councils.
8.64 The Commission attempts to examine the impact of the 1st SFC and FC-XIV
on the fund devolution to the District Councils. Unfortunately, there is no
detailed data on item-wise fund devolution as recommended by the 1st SFC.
For instance, while the SFC recommended that a fixed percentage of the State
Government's own tax revenue receipts be devolved to District Councils
during its period (from 2015-16 to 2019-20), no detailed data on the sharing
of State’s Own Tax Revenue could be found in budget documents from either
the State Government or District Councils. All the transfers to District
Councils are simply clubbed under Grants-in-aid (GIA) (salary and non-salary)
and grants for capital creation and Centrally Sponsored Scheme (CSS). As
such, the total State fund transfers to the District Councils is used as a proxy
for fund devolution for the sake of simplicity.
8.65 To examine the changes that took place during the three fiscal regimes such
as FC-XIII (2010-11 to 2014-15), FC-XIV (2015-16 to 2019-20) & 1st SFC
(2015-16 to 2019-20), and FC-XV (2020-21 onwards), the average annual
fund devolution (State transfer) to each of these periods was examined.
Average annual fund devolution, rather than total transfer, is preferred as only
two years have passed in the FC-XV era. Another problem is the comparability
issue of these periods, as the budget data are all presented in nominal value
(i.e. current prices), which is heavily affected by inflation. Consequently, it is
necessary to convert the nominal budget data into real data using a suitable
method. The Gross Domestic Product (GDP) deflator converts the nominal
value into real terms. The GDP deflator is a price index that measures the
aggregate price level of goods and commodities in the current year relative to
prices in a base year. It is calculated as:
𝑁𝑜𝑚𝑖𝑛𝑎𝑙 𝐺𝐷𝑃 (𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑝𝑟𝑖𝑐𝑒𝑠)
𝐺𝐷𝑃 𝑑𝑒𝑓𝑙𝑎𝑡𝑜𝑟 =
𝑅𝑒𝑎𝑙 𝐺𝐷𝑃 (𝑎𝑡 𝑐𝑜𝑛𝑠𝑡𝑎𝑛𝑡 𝑝𝑟𝑖𝑐𝑒)
8.66 The Gross State Domestic Product (GSDP) 2011-12 series (constant and
nominal) are used to calculate the GDP deflator. Accordingly, real (inflation-
adjusted) revenues are computed by dividing the revenues at current prices
by the GDP deflator. The real values of State fund transfer and the own
~ 260 ~
__________________________________________________________________________________
revenue of the District Councils are presented in Table 8.21 (CADC), Table
8.22 (LADC) and Table 8.23 (MADC).
8.67 It is observed from Tables 2.21 to 2.23 that the average annual real revenue
transfers from the State Government between 2010-11 and 2014-15 to the
three District Councils was ₹5,374.27 lakh, ₹8,155.70 lakh, and ₹7,819.88
lakh in CADC, LADC, and MADC, respectively, while the average annual State
transfers increased to ₹6,597.53 lakh, ₹11,363.36 lakh, and ₹9,940.87 lakh,
respectively, during 2015-16 to 2019-20, which is the period of the 1st SFC
and FC-XIV. At the same time, the average annual real revenue transfers after
the 1st SFC period, i.e., 2020–21 and 2021–22 (RE), is ₹7,377.33 lakh,
₹13,105.81 lakh, and ₹11,009.65 lakh in CADC, LADC, and MADC,
respectively. There is a significant increase in real revenue transfers to the
District Councils during the 1st SFC period when compared with the period of
Central FC-XIII. In the same way, average annual real revenue receipts from
own sources have also increased from ₹50.56 lakh to ₹75.61 lakh in CADC,
from ₹108.62 lakh to ₹142.22 lakh in LADC, and from ₹80.88 lakh to ₹100.96
lakh in MADC. Except for CADC, which saw a decrease in real own revenues
after 2020-21, the other District Councils saw significant increases in own
revenue after 2020-21. As a result, it is clear that the financial position has
significantly improved in terms of increasing own revenue and State transfers
over time.
Table 8.21 Trends in real revenue receipts of CADC (2011-2012 prices)

(₹ in lakh)
Years Own Revenue State Transfer Total
2010-11 30.45 4431.42 4461.86
2011-12 45.56 4926.53 4972.09
2012-13 65.19 6537.31 6602.50
2013-14 56.54 5016.90 5073.44
2014-15 55.08 5959.17 6014.24
Annual average 50.56 5374.27 5424.83
2015-16 70.07 5205.31 5275.39
2016-17 82.41 5333.96 5416.38
2017-18 79.06 6763.47 6842.53
2018-19 64.47 7484.39 7548.86
2019-20 82.05 8200.49 8282.54
Annual average 75.61 6597.53 6673.14
Change (%) 49.50 22.80 23.00
2020-21 68.89 7280.41 7349.30
2021-22RE 74.32 7474.26 7548.57
Annual average 71.61 7377.33 7448.94
Change (%) -5.3 11.8 11.6
Note: The nominal revenue receipts are converted into real term using GDP deflator based on
2011-12 series
~ 261 ~
__________________________________________________________________________________
Table 8.22 Trends in real revenue receipts of LADC (2011-2012 prices)

(₹ in lakh)
2010-11 88.53 7879.92 7968.45
2011-12 113.08 7614.17 7727.25
2012-13 116.54 8133.85 8250.39
2013-14 112.34 9041.95 9154.30
2014-15 112.61 8108.62 8221.22
Annual average 108.62 8155.70 8264.32
2015-16 116.10 9314.38 9430.48
2016-17 121.81 9690.49 9812.29
2017-18 150.00 11634.04 11784.04
2018-19 146.68 12698.57 12845.25
2019-20 176.52 13479.33 13655.85
Annual average 142.22 11363.36 11505.58
Change (%) 30.9 39.3 39.2
2020-21 184.17 13148.06 13332.23
2021-22RE 164.99 13063.55 13228.54
Annual average 174.58 13105.81 13280.39
Change (%) 22.8 15.3 15.4

2011-12 series
8.68 Interpreting only the absolute increase in real revenues among the District
Councils may be misleading as they have differences in size and population.
So, the real impact of the 1st SFC and FC-XIV on the finances of the District
Councils may be looked at in terms of percentage. It is observed from the
tables that the increase in real revenue transfer after the implementation of
the report of the 1st State Finance Commission is highest in LADC (39.3%),
followed by MADC (27.1%), and lowest in CADC (22.8%). As against this trend,
the CADC has recorded the highest increase in its own revenue generation
during this period, experiencing a 49% increase in its own revenue generation
in the real term. As a result, it can be concluded that the implementation of
the 1st SFC benefits LADC the most in terms of State fund transfer, while
CADC benefits the least. Being the largest in terms of population and
geographical area compared with other District Councils, LADC has been in
the most advantageous position in the determination of its share of the
divisible pool of funds. This is clear and justified keeping in mind the criteria
adopted by the 1st SFC for horizontal devolution: population (40% weight),
~ 262 ~
__________________________________________________________________________________
geographical area (30% weight), and literacy (10% weight), in which LADC was
far better than other District Councils.
Table 8.23 Trends in real revenue receipts of MADC (2011-2012 prices)
(₹ in lakh)
2010-11 63.79 6961.93 7025.72
2011-12 75.16 7381.67 7456.83
2012-13 77.29 8436.91 8514.20
2013-14 90.84 7499.82 7590.65
2014-15 97.31 8819.06 8916.37

Annual
80.88 7819.88 7900.75
average
2015-16 88.08 7815.80 7903.88
2016-17 81.93 9046.44 9128.38
2017-18 101.20 10021.05 10122.24
2018-19 113.77 11245.13 11358.90
2019-20 119.83 11575.91 11695.75

Annual
100.96 9940.87 10041.83
average
Change (%) 24.8 27.1 27.1
2020-21 203.25 10981.94 11185.19
2021-22RE 122.69 11037.36 11160.04

Annual
162.97 11009.65 11172.62
average
Change (%) 61.4 10.8 11.3
2011-12 series
8.69 The annual growth rates of real revenue receipts (2011-12 prices) and the
overall growth rate for the three District Councils are presented in Tables 8.24
(CADC), 8.25 (LADC) and 8.26 (MADC). The tables show that CADC and MADC
experienced a substantial reduction in State revenue transfers in 2015-16
relative to 2014-15 at -12.7% and -11.4%, respectively, while the real State
fund transfer to LADC increased by 14.9% in 2015-16. However, the real
transfer to LADC in the previous year decreased by -10.3%, while the CADC
and MADC experienced an increase of 18.8% and 17.6%, respectively, in
2014-15. A key takeaway from these observations is that the implementation
of the 1st SFC recommendation has shaped State-District Council fiscal
relations toward rule-based fund devolution as per the recommended criteria.
~ 263 ~
__________________________________________________________________________________
This, in turn, implicates the criticality of determining criteria for devolution

and the effective allocation of weights to these criteria.
Table 8.24 Annual growth rates of real revenue receipts of CADC (2011-2012
prices) (in percent)
2010-11 -- -- --
2011-12 49.6 11.2 11.4
2012-13 43.1 32.7 32.8
2013-14 -13.3 -23.3 -23.2
2014-15 -2.6 18.8 18.5
2015-16 27.2 -12.7 -12.3
2016-17 15.5 2.5 2.6
2017-18 -2.3 26.8 26.4
2018-19 -18.4 10.7 10.3
2019-20 27.3 9.6 9.7
2020-21 -16.0 -11.2 -11.3
2021-22RE 7.9 2.7 2.7
CAGR (%) 6.14 4.74 4.76
2011-12 series
Table 8.25 Annual growth rates of real revenue receipts of LADC (2011-2012
prices)
(in percent)
2010-11 -- -- --
2011-12 27.7 -3.4 -3.0
2012-13 3.1 6.8 6.8
2013-14 -3.6 11.2 11.0
2014-15 0.2 -10.3 -10.2
2015-16 3.1 14.9 14.7
2016-17 4.9 4.0 4.0
2017-18 23.1 20.1 20.1
2018-19 -2.2 9.2 9.0
2019-20 20.3 6.1 6.3
2020-21 3.1 -2.5 -2.4
2021-22RE -10.8 -0.6 -0.8
CAGR (%) 5.79 6.06 6.06
2011-12 series
~ 264 ~
__________________________________________________________________________________
Table 8.26 Annual growth rates of real revenue receipts of MADC (2011-2012
prices)
(in percent)
2010-11 -- -- --
2011-12 17.8 6.0 6.1
2012-13 2.8 14.3 14.2
2013-14 17.5 -11.1 -10.8
2014-15 7.1 17.6 17.5
2015-16 -9.5 -11.4 -11.4
2016-17 -7.0 15.7 15.5
2017-18 23.5 10.8 10.9
2018-19 12.4 12.2 12.2
2019-20 5.3 2.9 3.0
2020-21 69.6 -5.1 -4.4
2021-22RE -39.6 0.5 -0.2
CAGR %) 7.39 4.80 4.83

2011-12 series
8.70 Further, as shown in the tables, though there was negative year-on-year
growth in some years, all the District Councils have experienced an
improvement in the real revenue receipts since 2010–11. As a result, the
overall compound annual growth rates of real revenue receipts (own revenue
and State fund transfer) in all District Councils are all positive and greater
than 4%. The LADC recorded the highest growth, registering a 6.1% annual
real growth rate of total revenue receipts, followed by the MADC, at 4.83%,
and the CADC, at 4.76% per annum. Furthermore, the tables show that LADC
experienced robust growth in State transfers during the 1st SFC period,
whereas MADC and CADC experienced year-on-year increases in State fund
transfers for four years. Meanwhile, real revenue transfers to all District
Councils fell in 2020-21, after the 1st SFC period ended. So, it can be
concluded that the District Councils were in a better position during the 1st
SFC period in terms of the State fund devolution they received, whether in
nominal or real terms.
8.71 However, having implemented the recommendation of the 1st SFC, the annual
fund transfers to the District Councils and its distribution to different
Councils are expected to be on a pro-rata basis as per the recommended
horizontal devolution formula. As against this principle, the annual growths
~ 265 ~
__________________________________________________________________________________
of State fund transfers differ widely among the District Councils even after
three years of the implementation of 1st SFC recommendations. The possible
impact of the CSS and other grants (excluded area grants, etc.) which are
rather irregular but counted towards the total amount of State fund transfers
to District Councils can be one among the reasons for the deviation from the
horizontal devolution formula.
Buoyancy of Own Revenues
8.72 The growth of the District Councils' own tax and non-tax revenues and their
levels of tax efforts in terms of the ratio of their own revenues to the total
expenditure, revenue receipts, and population have already been examined in
the preceding paragraphs. The interest here is to understand how these
District Councils could sustain their growing revenue receipts in the future,
while understanding the behavioural patterns of the revenue receipts in
response to the change in the revenue base would be of crucial importance.
Thus, estimating revenue buoyancy could help us better understand the
dimensions of the impact of other factors (called the base) on the revenue
receipts of the District Councils. Revenue buoyancy is defined as the ratio of
the percentage change in revenue (tax or non-tax) to the percentage change in
the base. Tax buoyancy measures the response of tax revenues to gross
domestic product (GDP) and is, therefore, a key metric for understanding tax
system performance and the outlook for revenues.
8.73 In the absence of time series data on the income of the three District Councils,
it is considered justified to use the Gross State Domestic Product (GSDP) as
the base of the buoyancy estimates. Taxes collected at the District Councils
—professions tax, land revenue, trade license, and tax on entry of vehicles—
are all believed to be related to population growth. Accordingly, the projected
population is also used as the base for the buoyancy estimates. Thus,
buoyancy estimates for the own revenues of the District Council will measure
the responsiveness of the Councils’ own revenues to the increase in the
revenue base, i.e., GSDP and population of the District Council. Buoyancy
coefficients greater than one would imply that revenues grow faster than the
base, and less than one would be the opposite. Therefore, if the estimated
coefficient on GSDP is greater than one, it will imply that the own revenue of
the Council will grow faster than the growth of GSDP in the State. Similarly,
if the buoyancy coefficient on population is greater than one, the District
Council’s own revenue could grow faster than the population growth in the
area. Against this, the District Council’s revenue will grow less than the
growth of the GSDP or population if the buoyancy coefficient is less than one.
8.74 The next problem is selecting the regression model to estimate tax buoyancy.
Traditionally, revenue buoyancy is estimated by means of a regression of the
natural logarithm of tax revenue on the natural log of GDP. In this model, the
coefficient on the logarithm of the base is simply the measure of tax buoyancy.
~ 266 ~
__________________________________________________________________________________
This is an elegant approach, although the results are somewhat sensitive to

unusual years and also need data for every year. The main advantage of using
the log-linear model is the constant buoyancy estimate (coefficient), which is
independent of the measurement unit. The log-linear regression equation for
estimating revenue buoyancy is given by the following equation:
log(𝑅) = 𝛼 + 𝛽log(𝐵𝑎𝑠𝑒) + 𝜖
where R is the revenue (tax or non-tax), GSDP and population are the adopted
base, 𝜖 is the error terms, and 𝛽 is the buoyancy coefficient. The revenue is
said to be buoyant if 𝛽 is more than 1, i.e., increase faster than the base, and
less buoyant if it is less than 1.
8.75 The estimated tax and non-tax revenue buoyancies of the three District
Councils using the log-linear regression given above are presented in Table
8.27. The estimated buoyancy coefficients for the base population are highly
significant and greater than 1 for tax and non-tax revenue in all the District
Councils. It is, however, noted that there is a possibility of autocorrelation
when the independent variable is projected or extrapolated data, like the
projected population used in this estimate. However, despite this possibility,
it is seen that population growth in the District Council areas has been the
most significant driver of the District Council’s revenue receipts over time.
Therefore, population is the main determinant of the own revenue capacities
of the District Councils in Mizoram and, hence, should be given a central place
in the determination of the criteria for horizontal tax devolution.
8.76 Table 8.27 also shows that the tax and non-tax revenues of the three District
Councils in Mizoram have been significantly determined by the GSDP of
Mizoram, as the estimated coefficients are significant in all cases. However, it
is surprising to see that the own tax revenue and own non-tax revenue are
less buoyant, as the estimated coefficients are all less than 1. That is, the
revenue of these District Councils increases less than proportionately with the
increase in the State's income. This clearly indicates that the revenue receipts
do not respond to the economic growth that is expected to be adequately
responded to. The three District Councils constituted 16% and 18.5% of the
population and geographical areas of the State, respectively, in the population
census of 2011. Taking this into consideration, the use of the GSDP as a
revenue base is a fair representation of their resource base, as they are well
included in the estimation of the GSDP. Thus, the non-progressive nature of
the own revenue capacities of the Councils may be addressed by better tax
efforts on their part to mobilise more revenues (tax and non-tax) to catch up
with economic growth, which generates a wide variety of new economic
activities over time.
~ 267 ~
__________________________________________________________________________________
Table 8.27 Estimated Buoyancies of Tax and Non Tax Revenues of the District
Councils
District Explanatory Variable (revenue base)

Revenue Source
Council Coefficient Sig. R-Square
Population
Tax Revenue (TR) 3.16*** 0.000 0.91
CADC Non Tax Revenue (NTR) 4.68*** 0.005 0.53

Own Revenue Total
3.59*** 0.000 0.79
(TR+NTR)
Tax Revenue (TR) 2.81*** 0.000 0.96
LADC Non Tax Revenue (NTR) 3.15*** 0.000 0.80

Own Revenue Total
2.95*** 0.000 0.94
(TR+NTR)
Tax Revenue (TR) 5.81*** 0.000 0.72
MADC Non Tax Revenue (NTR) 6.19*** 0.000 0.82

Own Revenue Total
5.94*** 0.000 0.88
(TR+NTR)
Gross State Domestic Product
Tax Revenue (TR) 0.55*** 0.000 0.90
CADC Non Tax Revenue (NTR) 0.81*** 0.006 0.52

Own Revenue Total
0.62*** 0.000 0.77
(TR+NTR)
Tax Revenue (TR) 0.56*** 0.000 0.95
LADC Non Tax Revenue (NTR) 0.64*** 0.000 0.80

Own Revenue Total
0.59*** 0.000 0.93
(TR+NTR)
Tax Revenue (TR) 0.69*** 0.000 0.74
MADC Non Tax Revenue (NTR) 0.73*** 0.000 0.82

Own Revenue Total
0.70*** 0.000 0.89
(TR+NTR)
***significant at 1% level, ** significant at 5% level, & * significant at 10% level
Source: Computed from Budget data using log-linear regression
8.77 To go deeper into the buoyancy of own revenues, the buoyancies of the major
taxes, which show statistical continuity for more than 5 years, to the same tax
bases as (population and GSDP) as given in Table 8.27 are estimated and
presented in Table 8.28.
~ 268 ~
__________________________________________________________________________________
Table 8.28 Estimated Buoyancies of major Own Tax Revenues in the District
Councils
Independent Variable (revenue base)

District
Tax Revenue Sources Buoyancy
Councils Sig. R-Square
Coefficient
Population
Professions Tax 2.68*** 0.000 0.93
Land Revenue 3.21*** 0.007 0.50

CADC
Trade Licences 5.18** 0.031 0.36
Tax on boat 3.08 0.198 0.18
LADC Land Revenue 4.68*** 0.000 0.92
Tax on Entry of vehicles 2.74*** 0.000 0.72
Land Revenue 13.01*** 0.001 0.66

MADC
Trade License 6.46*** 0.001 0.68
Motor vehicle -0.24 0.880 0.00
Land Revenue 0.56*** 0.008 0.49

CADC
Trade Licences 0.94 0.389 0.02
Tax on boat 0.56 0.178 0.56
LADC Land Revenue 0.93*** 0.000 0.90
Tax on Entry of vehicles 0.54*** 0.001 0.68
Land Revenue 1.50*** 0.001 0.64

MADC
Trade License 0.78*** 0.000 0.73
Motor vehicle tax -0.02 0.925 0.00

Source: Computed from Budget documents using log-linear regression
8.78 Except for the tax on boats in CADC and motor vehicles in MADC, all other
tax revenue sources are highly buoyant to population growth, confirming
previous observations. Extremely high buoyancy is observed for land revenue
in MADC, having a buoyancy coefficient of 13.01, with the reason being a
sudden increase in land revenue collection in the wake of the introduction of
~ 269 ~
__________________________________________________________________________________
a compensation cess in 2020–21. This table clearly shows that population is

the most important determinant of revenue capacities of the District Councils.
8.79 Concerning the buoyancy of the tax revenues to the growth of the GSDP, most
of the tax revenues across the District Councils have shown significant
responses, except for trade licence and boat tax in CADC and motor vehicle
tax in MADC, where the buoyancy coefficients are not significant. But these
tax revenues are not buoyant in the sense that they are growing less than
proportionally to the growth of GSDP. At the same time, it is worth noting that
land revenue in MADC has shown significant buoyancy (i.e., 1.5) to GSDP. As
noted above, this is due to the effect of the introduction of a compensation
cess. This could indicate that any new effort to raise more revenue from the
existing tax is likely to have a significant impact on the buoyancy. In a
nutshell, the tax revenues of the District Councils, though significantly
dependent on economic growth, fail to keep pace with the rate of economic
development in the State.
8.80 The insignificant buoyancy estimates for some tax items appear surprising.
The Commission observes that, despite the CADC conducting regular licence
auctions, non-payment of licence renewal fees by the holder is rampant, and
there is apparently no regular checking of the licences by the Council officials.
It is also observed that the District Council fails to pay adequate attention to
the regulation of boats used for inland water transportation. In such a case,
one cannot anticipate significant and buoyant tax revenues on the
aforementioned items. The MADC motor vehicle tax is essentially the Council's
parking fee collection. The insignificance of this tax in terms of population and
GSDP is quite surprising, given that the entire State is experiencing an out-
of-control increase in motor vehicles. Inefficiencies in revenue assessment and
collection administration could be the source of the problem. At the same time,
the possibility of accounting errors in entering the proceeds into the District
Councils budget books cannot be ruled out.
8.81 Let us move towards examining the buoyancy (or volatility) of the State fund
devolution to the three District Councils while examining the buoyancy of their
own revenues. This can also be interpreted as the State's progressive ability
to increase fiscal transfers to District Councils as key economic parameters
such as its own tax revenue, budget size, and GSDP rise. The result is
presented in Table 8.29.
~ 270 ~
__________________________________________________________________________________
Table 8.29 Estimated Buoyancy Coefficients of State Fund Devolution to the

District Councils
Independent Variable (revenue base)

Dependent Variable Buoyancy
Sig. R-Square
Coefficient
State Budget
Grant-in-Aid (Salary) 0.93*** 0.000 0.91
Grant-in-Aid (Non-Salary) 1.35** 0.045 0.32
Other Grants -3.02 0.054 0.32
State’s Own Tax Revenue
Grant-in-Aid (Non-Salary) 1.01** 0.020 0.40
Other Grants -1.54 0.146 0.20
Grant-in-Aid (Non-Salary) 0.90 0.054 0.30
Other Grants -1.99 0.076 0.28

Source: Computed from Budget documents using log-linear regression
8.82 The result of log-linear regression shown in Table 8.29 reveals that 91% of
changes in the GIA (salary) to the District Councils depend on the State
government budget, while the GIA (non-salary) depends on the State budget
only to some extent (32%). Similarly, the State's own tax revenue and the
GSDP are significant determinants of the GIA (salary) and GIA (non-salary),
with the latter being less so. At the same time, the size of the State budget,
the State's own tax revenue, and GSDP are not significant determinants of
other grants, viz. grants for the creation of capital assets, etc.
8.83 Looking at the buoyancy coefficients, the salary component of grant-in-aid has
increased, although less than proportionately, with the increase in the three
key parameters: State budget, State’s own tax revenue, and GSDP. The less-
than-proportional buoyancy of the salary component may be considered
justified on the ground that bringing down the revenue expenditure is an all-
time objective of the Government's fiscal policy at all levels (State and sub-
state). At the same time, the estimated buoyancy coefficients for the non-
salary component of grant-in-aid concerning the State budget and State’s own
tax revenue are slightly higher than one. As it is the mandate of the
Government to carry out developmental activities for the socio-economic
development of the people, the buoyant GIA to the non-salary component of
the District Councils is a desirable trend in view of the principles of fiscal
~ 271 ~
__________________________________________________________________________________
federalism. However, the less significant and lower buoyancy coefficient for
the non-salary transfer is a concern because the District Councils have limited
revenue sources and thereby need more financial transfer to carry out
developmental efforts in their respective areas. This is necessitated by the
insignificant and irregular amounts of funds received by the District Councils
from other sources (CSS, infrastructure grants, etc.).
Expenditure patterns of the District Councils
8.84 The increasing revenue expenditure relative to the decreasing expenditure for
creation of capital assets in the District Councils has become a cause of
concern. If this trend continues, District Councils will be severely hampered
in carrying out their mandate of bringing socioeconomic development to their
respective areas. This pattern has a negative impact on the District Council’s
development because development expenditures such as education, rural
development, agriculture, and so on has been pushed to the sidelines, to the
detriment of the people.
Economic Classification of Expenditures
8.85 The economic classification of the expenditures of the three district councils
and the trends are presented in Tables 8.30 (CADC), 8.31 (LADC), and 8.32
(MADC). With limited own revenues and rising demand for committed
expenditures such as salary, pension, and establishment expenses, District
Councils' ability to finance capital expenditures is heavily reliant on the inflow
of Centrally funded infrastructure projects such as CSS and Excluded Area
Grants, as well as State grants for capital asset creation projects. The
composition of the expenditures between revenue and capital changes
accordingly. However, the inflow of funds to the District Councils for capital
expenditures is not continuous, and there have been drastic reductions in
capital expenditures in all the District Councils from time to time, especially
after financial year 2020–21, when a negligible amount was expended. For the
majority of the years, revenue expenditures exceeded 90% of total
expenditures in all District Councils. Comparing the average composition of
the revenue and capital expenditures during the pre- and post- 1st SFC periods
(i.e., 2010–11 to 2014–15 and after 2015–16), the average percentages of
revenue expenditures increase significantly in all the District Councils during
the latter. The average contribution of revenue expenditures to the total
expenditures in CADC up to 2014–15 is 79.1%, which increases to 97.3% from
2015–16 until 2022–23. The same has increased from 88.8% to 93.6% in
LADC and from 87.4% to 95.3% in MADC during the two periods under
comparison.
~ 272 ~
__________________________________________________________________________________
Table 8.30 Economic classification of the expenditure of CADC
Revenue Capital Total Revenue Capital

Years Total (%)
(₹ in lakh) (₹ in lakh) (₹ in lakh) (%) (%)
2010-11 4024.76 106.48 4131.24 97.4 2.6 100
2011-12 4225.62 1090.00 5315.62 79.5 20.5 100
2012-13 4557.00 2499.01 7056.01 64.6 35.4 100
2013-14 4497.74 1252.22 5749.96 78.2 21.8 100
2014-15 5361.76 1695.00 7056.76 76.0 24.0 100
2015-16 5925.09 838.11 6763.20 87.6 12.4 100
2016-17 6631.23 39.00 6670.23 99.4 0.6 100
2017-18 8317.39 247.90 8565.29 97.1 2.9 100
2018-19 9792.87 346.56 10139.43 96.6 3.4 100
2019-20 11411.25 14.88 11426.13 99.9 0.1 100
2020-21 10405.94 246.30 10652.24 97.7 2.3 100
2021-22RE 11760.75 11760.75 100.0 0.0 100
2022-23BE 15629.40 15629.40 100.0 0.0 100
CAGR (%) 12.17 ** 9.56
** insignificant trend coefficient
Table 8.31 Economic classification of the expenditure of LADC
Revenue Capital Total Revenue Capital Total

Years
(₹ in lakh) (₹ in lakh) (₹ in lakh) (%) (%) (%)
2010-11 7323.91 5.00 7328.91 99.9 0.1 100
2011-12 7692.08 5.00 7697.08 99.9 0.1 100
2012-13 8105.52 3598.79 11704.31 69.3 30.7 100
2013-14 8272.43 594.20 8866.63 93.3 6.7 100
2014-15 9321.99 2128.76 11450.75 81.4 18.6 100
2015-16 10580.00 2391.00 12971.00 81.6 18.4 100
2016-17 12598.00 889.00 13487.00 93.4 6.6 100
2017-18 13520.00 626.00 14146.00 95.6 4.4 100
2018-19 16674.00 1855.00 18529.00 90 10 100
2019-20 18284.00 1541.00 19825.00 92.2 7.8 100
2020-21 18814.00 652.00 19466.00 96.7 3.3 100
2021-22RE 20555.00 20555.00 100 --- 100
2022-23BE 20917.50 66.50 20984.00 99.7 0.3 100
CAGR (%) 10.62 ** 9.62
~ 273 ~
__________________________________________________________________________________
Table 8.32 Economic classification of the expenditure of MADC
Revenue Capital Total Revenue Capital Total

Years
(₹ in lakh) (₹ in lakh) (₹ in lakh) (%) (%) (%)
2010-11 6231.41 230.00 6461.41 96.4 3.6 100
2011-12 7046.16 410.67 7456.83 94.5 5.5 100
2012-13 7156.90 2055.33 9212.23 77.7 22.3 100
2013-14 7397.11 1301.87 8698.98 85 15 100
2014-15 8807.37 1752.04 10559.41 83.4 16.6 100
2015-16 10192.83 807.93 11000.76 92.7 7.3 100
2016-17 11114.00 1210.45 12324.45 90.2 9.8 100
2017-18 12458.20 519.69 12977.89 96 4 100
2018-19 14509.43 619.51 15128.94 95.9 4.1 100
2019-20 16002.35 117.00 16119.35 99.3 0.7 100
2020-21 15665.55 1954.74 17620.29 88.9 11.1 100
2021-22RE 17302.17 91.12 17393.29 99.5 0.5 100
2022-23BE 17393.70 17393.70 100 --- 100
CAGR (%) 9.97 ** 8.89
8.86 Meanwhile, the annual compound growth of the revenue expenditures exceeds
the overall budgetary expenditures for all the District Councils. For example,
the annual growth rates of revenue expenditures in the three District Councils
are 12.17%, 10.62%, and 9.97% in CADC, LADC, and MADC, respectively,
while the annual growth rates of total budgetary expenditures for these
District Councils are 9.56%, 9.62%, and 8.89%, respectively. If this trend
continues, the District Councils' entire budgets will be consumed by revenue
expenditure sooner or later, leaving no room for the District Councils'
developmental works.
8.87 Following the examination of the economic classification of District Council

budgets and the raising of the alarm about the rapidly increasing revenue
expenditure, it is thought prudent to further dissect the revenue expenditures
and their trends. The total revenue expenditures are further classified into
three components: salary and allowances, wages and honoraria, and other
establishment expenses. In Tables 8.33 and 8.34, it is observed that there has
been a continuous and fast increase in the expenditures on salary and
allowances and pensions and other benefits in CADC during the last 12 years
(from 2010-11 to 2022-23), registering an annual growth of 13.65% and
24.72%, respectively. At the same time, the combined percentage contribution
of the two revenue expenditure items has also increased significantly, from
69.4% in 2010–11 to as much as 95.6% in 2022–23. Thus, it is clear that
committed expenditures have been the driving forces behind ever-rising
~ 274 ~
__________________________________________________________________________________
revenue expenditures in CADC, which accounted for more than 95% of the
total revenue expenditures.
Table 8.33 Composition of revenue expenditure of CADC

(₹ in lakh)
Pension &
Salary & Wages & Other Estt
Years other Total
Allowances honorarium Expenses
benefits
2010-11 2634.00 88.87 158.21 1143.68 4024.76
2011-12 2885.34 86.48 188.50 1065.30 4225.62
2012-13 3190.00 171.56 227.04 968.40 4557.00
2013-14 3673.36 141.73 277.04 405.61 4497.74
2014-15 4510.33 154.91 345.00 351.52 5361.76
2015-16 4831.06 16.31 673.72 404.00 5925.09
2016-17 5630.92 27.22 459.20 513.89 6631.23
2017-18 6234.80 28.40 582.20 1471.99 8317.39
2018-19 7322.04 35.88 1754.90 680.05 9792.87
2019-20 8766.96 25.46 1497.68 1121.15 11411.25
2020-21 8322.60 28.96 1378.85 675.53 10405.94
2021-22RE 9464.75 32.94 1532.72 730.34 11760.75
2022-23BE 13213.97 40.14 1725.42 649.91 15629.44
CAGR (%) 13.65 -12.47* 24.72 -0.58* 12.17
Source: Chakma Autonomous District Council/ * insignificant trend coefficient
Table 8.34 Composition of revenue expenditure of CADC in percentage
Pension &
Salary & Wages & Other
Years other Total
benefits
2010-11 65.4 2.2 3.9 28.4 100.0
2011-12 68.3 2.0 4.5 25.2 100.0
2012-13 70.0 3.8 5.0 21.3 100.0
2013-14 81.7 3.2 6.2 9.0 100.0
2014-15 84.1 2.9 6.4 6.6 100.0
2015-16 81.5 0.3 11.4 6.8 100.0
2016-17 84.9 0.4 6.9 7.7 100.0
2017-18 75.0 0.3 7.0 17.7 100.0
2018-19 74.8 0.4 17.9 6.9 100.0
2019-20 76.8 0.2 13.1 9.8 100.0
2020-21 80.0 0.3 13.3 6.5 100.0
2021-22RE 80.5 0.3 13.0 6.2 100.0
2022-23BE 84.5 0.3 11.0 4.2 100.0
~ 275 ~
__________________________________________________________________________________
8.88 As shown in Tables 8.35 and 8.36, the expenditures of the LADC on salary
and allowances have also increased consistently, with an annual growth rate
of 10.34%, while the pension and other benefits have increased by more than
23% per annum. Though salary and allowances increased slightly slower than
the overall increase in revenue expenditure (i.e., 10.62%), there is an alarming
increase in expenditure on pensions and other benefits. The combined
percentage share of the two committed expenditures has increased from
80.3% in 2010–11 to 91.2% in 2022–23.
Table 8.35 Composition of revenue expenditure of LADC

(₹ in lakh)
Pension &
Years other Total
benefits
2010-11 5638.85 24.00 242.89 1418.17 7323.91
2011-12 6235.00 26.00 344.00 1087.08 7692.08
2012-13 6990.13 26.40 490.00 598.99 8105.52
2013-14 7232.67 26.40 502.00 511.36 8272.43
2014-15 8207.10 24.75 657.33 432.81 9321.99
2015-16 6675.57 33.00 833.50 3037.93 10580.00
2016-17 7380.40 69.60 1135.76 4012.24 12598.00
2017-18 10777.90 84.00 1300.00 1358.10 13520.00
2018-19 13488.27 135.78 1873.00 1176.95 16674.00
2019-20 14956.20 140.20 2321.74 865.86 18284.00
2020-21 15044.22 60.20 2235.60 1473.98 18814.00
2021-22RE 15652.87 86.56 3324.38 1491.19 20555.00
2022-23BE 16882.35 110.93 2205.20 1719.02 20917.50
CAGR (%) 10.34 16.53 23.07 5.13* 10.62

Source: Lai Autonomous District Council/ * insignificant trend coefficient
~ 276 ~
__________________________________________________________________________________
Table 8.36 Composition of revenue expenditure of LADC in percentage
Pension &
Years other Total
benefits
2010-11 77.0 0.3 3.3 19.4 100.0
2011-12 81.1 0.3 4.5 14.1 100.0
2012-13 86.2 0.3 6.0 7.4 100.0
2013-14 87.4 0.3 6.1 6.2 100.0
2014-15 88.0 0.3 7.1 4.6 100.0
2015-16 63.1 0.3 7.9 28.7 100.0
2016-17 58.6 0.6 9.0 31.8 100.0
2017-18 79.7 0.6 9.6 10.0 100.0
2018-19 80.9 0.8 11.2 7.1 100.0
2019-20 81.8 0.8 12.7 4.7 100.0
2020-21 80.0 0.3 11.9 7.8 100.0
2021-22RE 76.2 0.4 16.2 7.3 100.0
2022-23BE 80.7 0.5 10.5 8.2 100.0

8.89 Tables 8.37 and 8.38 also show the highly increasing pension liability (which
grows at 23.95%) side by side with a 10.32% increase in salary and allowances
in MADC, which accounts for the overall increase in revenue expenditures of
the Council. The combined percentage share of these two committed
expenditure items has increased from 81.2% in 2010–11 to 90.0% in 2022–
23.
~ 277 ~
__________________________________________________________________________________
Table 8.37 Composition of revenue expenditure of MADC

(₹ in lakh)
Pension &
Years other Total
benefits
2010-11 4951.66 67.74 108.20 1103.81 6231.41
2011-12 5531.79 58.56 170.00 1285.81 7046.16
2012-13 5935.56 85.60 230.00 905.74 7156.90
2013-14 6250.64 95.60 245.00 805.87 7397.11
2014-15 7384.67 98.50 372.00 952.20 8807.37
2015-16 8063.10 185.11 582.00 1362.62 10192.83
2016-17 9309.12 225.90 720.67 858.31 11114.00
2017-18 9956.86 239.32 743.20 1518.77 12458.15
2018-19 12513.80 189.55 920.12 885.96 14509.43
2019-20 13101.43 326.68 1666.95 907.29 16002.35
2020-21 13294.24 318.60 994.73 1057.98 15665.55
2021-22RE 14458.69 334.13 1286.30 1223.05 17302.17
2022-23BE 14280.23 320.04 1382.54 1410.89 17393.70
CAGR (%) 10.32 16.97 23.95 1.20* 9.97
Source: Mara Autonomous District Council/ * insignificant trend coefficient
Table 8.38 Composition of revenue expenditure of MADC in percentage
Pension &
Years other Total
benefits
2010-11 79.5 1.1 1.7 17.7 100.0
2011-12 78.5 0.8 2.4 18.2 100.0
2012-13 82.9 1.2 3.2 12.7 100.0
2013-14 84.5 1.3 3.3 10.9 100.0
2014-15 83.8 1.1 4.2 10.8 100.0
2015-16 79.1 1.8 5.7 13.4 100.0
2016-17 83.8 2.0 6.5 7.7 100.0
2017-18 79.9 1.9 6.0 12.2 100.0
2018-19 86.2 1.3 6.3 6.1 100.0
2019-20 81.9 2.0 10.4 5.7 100.0
2020-21 84.9 2.0 6.3 6.8 100.0
2021-22RE 83.6 1.9 7.4 7.1 100.0
2022-23BE 82.1 1.8 7.9 8.1 100.0
~ 278 ~
__________________________________________________________________________________
8.90 The District Councils' rapidly increasing expenditures on salaries and

allowances, pensions and other benefits indicate the growing burden of
committed expenditures. The increasing committed expenditures have the
effect of restricting the District Councils' ability to fund even their mandated
activities for the socio-economic advancement of the populace. Therefore, if
this trend continues unchecked, it is feared that the District Council's social
and welfare services will be severely compromised.
Functional Classification of Expenditures
8.91 In general, the functional classification of governmental expenditure

comprises three main categories: general services, social services, and
economic services. Though the budget documents of the District Councils are
not aligned strictly with this classification, the major head-wise expenditures
of the Councils, such as establishment, maintenance, welfare, and capital
expenditure, are available. Considering the sub-items of these classifications
and the function and output they deliver, these classifications may be
considered the functional classification of the District Council’s expenditures.
Accordingly, establishment and maintenance, welfare expenditures, and
capital expenditures may be considered equivalent to the general, social, and
economic services, respectively. Thus, the functional classification of the
expenditures, including the composition in terms of percentage with respect
to the CADC, LADC, and MADC, are presented in Tables 8.39 to 8.44. It
should, however, be noted that these classifications are not comparable to the
functional classifications of State and Central Government expenditures and
should not be compared with or confused with them.
8.92 First, the establishment expenditures are primarily the Council’s expenditures
on the employees and office expenses, such as salary, allowances, pension,
office expenses, traveling, publicity, remunerations of Village Councils,
medical reimbursement, vehicles, training, protocol, etc. Second, the
maintenance expenditures include minor works for the repair of assets,
disaster management, sanitation, etc. Third, welfare expenditures include the
local area development fund of MDC, students’ scholarships, education
expenditure (excluding salaries of teachers), health (excluding salaries of
health workers), incentive awards, etc. Fourth, capital expenditure includes
land, buildings, roads, and bridges; rainwater harvesting; solid waste
management; and State or Central Government-sponsored development
projects.
8.93 It is observed from Table 8.39 that the expenditures on general services
(establishment and maintenance) in CADC have increased by more than 13%
per annum over the period, while the welfare expenses (social services) have
also increased by more than 11% during this period. At the same time, we
have seen a significant decline in expenditures on economic services. The
percentage breakup of the expenditure, as shown in Table 8.40, reveals the
~ 279 ~
__________________________________________________________________________________
absolute dominance of establishment expenditure with limited scope for other

services.
Table 8.39 Functional classification of expenditure of CADC

(₹ in lakh)
Establish- Mainte-
Welfare Capital Total
Years ment nance
Expenditure Expenditure Expenditure
Expenditure Expenditure
2010-11 3487.20 12.20 100.60 363.90 3964.00
2011-12 3602.30 3.50 42.10 484.60 4132.50
2012-13 3910.90 8.80 52.40 1132.90 5105.00
2013-14 4329.70 860.90 36.70 552.70 5780.00
2014-15 5388.10 1220.70 46.70 767.50 7422.90
2015-16 5776.70 148.40 0.00 838.10 6763.20
2016-17 6585.20 27.80 18.30 39.00 6670.20
2017-18 8179.40 70.30 67.70 247.90 8565.30
2018-19 9601.60 60.70 130.60 346.60 10139.40
2019-20 11093.60 169.60 148.00 14.90 11426.10
2020-21 10178.70 79.10 148.20 246.30 10652.20
2021-22RE 11529.30 64.90 166.60 0.00 11760.80
2022-23BE 15629.40 82.70 162.90 0.00 15875.10
CAGR (%) 13.45 13.62 11.72 -19.61 11.25
Table 8.40 Functional classification of CADC’s expenditure in percentage
Establish- Mainte-
Welfare Capital Total
Years ment nance
Expenditure Expenditure Expenditure
Expenditure Expenditure
2010-11 88.0 0.3 2.5 9.2 100
2011-12 87.2 0.1 1 11.7 100
2012-13 76.6 0.2 1 22.2 100
2013-14 74.9 14.9 0.6 9.6 100
2014-15 72.6 16.4 0.6 10.3 100
2015-16 85.4 2.2 0 12.4 100
2016-17 98.7 0.4 0.3 0.6 100
2017-18 95.5 0.8 0.8 2.9 100
2018-19 94.7 0.6 1.3 3.4 100
2019-20 97.1 1.5 1.3 0.1 100
2020-21 95.6 0.7 1.4 2.3 100
2021-22RE 98.0 0.6 1.4 0 100
2022-23BE 98.5 0.5 1 0 100
~ 280 ~
__________________________________________________________________________________
8.94 The increasing importance of the budget allocation for the establishment has
also been found in LADC (Table 8.41), which shows an annual growth of
11.52% since 2010–11, while the maintenance expenditure has also recorded
a fast increase at 15.5% during this period. At the same time, capital
expenditure has not shown a clear pattern. The share of establishment
expenditure has shot up to as much as 97% of the total expenditure in 2022–
2033 (Table 8.42) while the share of capital expenditure is comparatively less
over the years with the exception of 2012-13 and 2014-15.
Table 8.41 Functional classification of expenditure of LADC

(₹ in lakh)
Establish-
Maintenance Welfare Capital Total
Years ment
Expenditure Expenditure Expenditure Expenditure
Expenditure
2010-11 6140.10 1133.10 50.80 5.00 7328.90
2011-12 6891.70 762.20 38.20 5.00 7697.10
2012-13 7945.90 6.60 153.00 3598.80 11704.30
2013-14 8160.90 6.60 104.90 594.20 8866.60
2014-15 9234.00 7.50 80.50 2128.80 11450.80
2015-16 7905.70 3945.80 26.90 7.50 11885.90
2016-17 9133.10 2871.20 42.10 7.00 12053.40
2017-18 12818.40 2759.20 31.10 8.00 15616.70
2018-19 16225.40 1395.90 122.00 10.00 17753.30
2019-20 18304.40 748.70 186.00 8.00 19247.10
2020-21 18113.80 532.50 244.70 660.30 19551.30
2021-22RE 19981.10 187.80 232.80 404.60 20806.30
2022-23BE 20364.90 269.10 283.50 66.50 20984.00
CAGR (%) 11.52 15.5 14.05 4.0** 9.68

Source: Lai Autonomous District Council/** insignificant trend coefficient
~ 281 ~
__________________________________________________________________________________
Table 8.42 Functional classification of LADC’s expenditure in percentage

Establish-
Years ment
Expenditure
2010-11 83.8 15.5 0.7 0.1 100
2011-12 89.5 9.9 0.5 0.1 100
2012-13 67.9 0.1 1.3 30.7 100
2013-14 92.0 0.1 1.2 6.7 100
2014-15 80.6 0.1 0.7 18.6 100
2015-16 66.5 33.2 0.2 0.1 100
2016-17 75.8 23.8 0.3 0.1 100
2017-18 82.1 17.7 0.2 0.1 100
2018-19 91.4 7.9 0.7 0.1 100
2019-20 95.1 3.9 1 0 100
2020-21 92.6 2.7 1.3 3.4 100
2021-22RE 96.0 0.9 1.1 1.9 100
2022-23BE 97.0 1.3 1.4 0.3 100

8.95 Table 8.43 shows an increase in establishment expenditure even in the case
of MADC by 11.13% since 2011, while maintenance expenditure does not
increase during this period. The establishment expenditure occupies an
increasingly dominant position in budget allocation, reaching 95.1% in 2019-
20, while welfare and capital expenditures are kept on the sidelines.
8.96 The functional allocation of expenditures in the District Councils has shown
that the burgeoning establishment expenditure driven by salaries and
allowances has distorted the allocation of resources in these District Councils.
This has squeezed their fiscal space, and they have become unable to allocate
more resources to social services and create additional assets for development.
At the same time, large resource allocation for salary and allowances does not
necessarily imply spending money on non-productive purposes because
nearly half of District Councils' salary expenditures go to education, which is
the District Councils' primary function. Taking the case of LADC, 50.1% and
49.2% of the salary expenditures were spent on education and human
resources in 2017–18 and 2022–23 (BE), respectively. As long as spending on
education is viewed as an investment in future development, it is possible to
claim that significant resources have been spent on developmental efforts.
Meanwhile, it is expected that this has to go hand in hand with the growth of
other social services and the creation of necessary infrastructure through
capital expenditures.
~ 282 ~
__________________________________________________________________________________
Table 8.43 Functional classification of expenditure of MADC

(₹ in lakh)
Establish-
Years ment
Expenditure
2010-11 6140.10 1133.10 50.80 5.00 7328.90
2011-12 6891.70 762.20 38.20 5.00 7697.10
2012-13 7945.90 6.60 153.00 3598.80 11704.30
2013-14 8160.90 6.60 104.90 594.20 8866.60
2014-15 9234.00 7.50 80.50 2128.80 11450.80
2015-16 7905.70 3945.80 26.90 7.50 11885.90
2016-17 9133.10 2871.20 42.10 7.00 12053.40
2017-18 12818.40 2759.20 31.10 8.00 15616.70
2018-19 16225.40 1395.90 122.00 10.00 17753.30
2019-20 18304.40 748.70 186.00 8.00 19247.10
2020-21 18113.80 532.50 244.70 660.30 19551.30
2021-22RE 19981.10 187.80 232.80 404.60 20806.30
2022-23BE 20364.90 269.10 283.50 66.50 20984.00
CAGR (%) 11.13 -2.95 8.19 -15.46** 8.76
Source: Mara Autonomous District Council/** insignificant trend coefficient
Table 8.44 Functional classification of MADC’s expenditure in percentage

Establish-
Year ment
Expenditure
2010-11 83.8 15.5 0.7 0.1 100
2011-12 89.5 9.9 0.5 0.1 100
2012-13 67.9 0.1 1.3 30.7 100
2013-14 92.0 0.1 1.2 6.7 100
2014-15 80.6 0.1 0.7 18.6 100
2015-16 66.5 33.2 0.2 0.1 100
2016-17 75.8 23.8 0.3 0.1 100
2017-18 82.1 17.7 0.2 0.1 100
2018-19 91.4 7.9 0.7 0.1 100
2019-20 95.1 3.9 1 0 100
2020-21 92.6 2.7 1.3 3.4 100
2021-22RE 96.0 0.9 1.1 1.9 100
2022-23BE 97.0 1.3 1.4 0.3 100
~ 283 ~
__________________________________________________________________________________
8.97 In the current economic climate, especially given the fiscal shock brought on
by the Covid-19 pandemic, it is difficult for the Commission to provide an
accurate prediction for the revenue receipts and expenditures of the
Governments at all levels. There is a likelihood of post-pandemic gap-up
movement of either revenue or expenditures, and there are risks that the
important budget variables, such as revenues and expenditures, would not
definitely maintain their pre-pandemic pattern in the years to come. At this
juncture, it is unlikely that there is consensus among the experts and
policymakers on the methodology and modelling framework for projections of
budget variables. Considering all these issues, an attempt is made to make
projections on the own revenue and revenue expenditures of the District
Councils in Mizoram.
8.98 The time series econometric model of Auto-Regressive Integrated Moving

Average (ARIMA) is adopted to forecast own tax revenue (OTR) and own non-
tax revenues of the three District Councils. The selection of other regression
models for forecasting is likely to be affected by the base effect (i.e. high range
between end value and beginning value) and the uncertainties of the data
trend in recent years. So, the selection of the ARIMA model is considered
appropriate for forecasting as it captures the trend patterns and nature of
volatility. The table below shows the projection of own revenues of the three
district councils for the 5 years of the award period.
Table 8.45 Projections of Own Revenue Receipts of the District Councils

(₹ in lakh)
Sl.
Own revenues 2021-22 2022-23 2023-24 2024-25 2025-26
No.
Own tax revenues of
1. 83.77 74.78 81.21 85.63 90.4
CADC
Own tax revenues of
2. 156.44 152.1 167.98 177.32 184.18
LADC
Own tax revenues of
3. 107.98 123.36 132.59 136.97 141.86
MADC
Aggregate own tax
4. revenues of ADCs 348.19 350.24 381.78 399.92 416.44
[1+2+3]
Own non-tax
5. 33.17 57.59 54.41 61.22 70.38
revenues of CADC
Own non-tax
6. 98.85 103.4 113.49 120.78 127.58
revenues of LADC
Own non-tax
7. 85.07 97.83 124.75 154.21 198.13
revenues of MADC
Aggregate own non-
8. tax revenue of ADCs 217.09 258.82 292.65 336.21 396.09
[5+6+7]
~ 284 ~
__________________________________________________________________________________
Projections of revenue expenditures
8.99 The trend of the revenue expenditures in the three district councils is highly
sensitive to the will of the Government to increasingly control the
expenditures, while fiscal profligacy would leave the trend on a high trajectory.
As this is the case, we consciously desist from using standard ARIMA models
for forecasting the projections of revenue expenditures. We take the revenue
expenditures for the year 2020-21 as the base for making future projections.
We understand that the district councils have certain committed revenue
expenditures viz., salaries and allowances, wages, pensions and pension
contribution under the new pension scheme. While accommodating the
committed expenditures of the district councils and making room for
developmental expenditures, the Commission projects the revenue
expenditures of the three district councils as follows.
Table 8.46 Projections of Revenue Expenditures of the District Councils

(₹ in lakh)
Sl.
Items 2021-22 2022-23 2023-24 2024-25 2025-26
No
Projected revenue
expenditure
1 11881.47 12990.83 14171.71 15176.92 16220.02
requirements of
CADC
Projected revenue
expenditure
2 20409.81 22039.51 23101.47 24657.31 26063.33
requirements of
LADC
Projected revenue
expenditure
3 17669.28 18866.00 20197.70 21611.01 23135.30
requirements of
MADC
Aggregate revenue
expenditure
4 49960.56 53896.34 57470.89 61445.25 65418.65
requirements of
ADCs
8.100 With their own revenue receipts being too little at 1.2% of the total revenue
receipts on average since 2010–11, the three District Councils have to depend
on funds transferred from the State Government in the form of grants-in-aid
(GIA) for more than 98% of their expenditure requirements. The salary
component of GIA has constituted more than 92% of the total transfers, while
the non-salary component has shown a declining trend over time. The State
fund devolution to the District Councils for the creation of capital assets is
being shaped by the flow of funds for the implementation of CSS and other
Central-funded projects due to the limited financial capacity of the State
Government to devolve its own funds for capital expenditures. However, such
Central schemes were not continuous and experienced a secular decline,
especially after 2014 owing to the abolition of the Planning Commission, and
the District Councils can barely undertake development works today.
~ 285 ~
__________________________________________________________________________________
8.101 There was a significant increase in fund devolutions to the District Councils
in real terms during the 1st SFC/FC-XIV period (2015–20) compared with the
FC-XIII period (i.e., 2010–15). Moreover, comparing the two periods, the
increase in average annual real revenue transfer is the highest in LADC
(39.3%), followed by MADC (27.1%), and CADC (22.8%). The increasing
pattern post-FC-XIII is in line with the adopted criteria of the 1st SFC for
horizontal devolution. It can be asserted that the implementation of the 1 st
SFC recommendations has shaped the States' and District Councils’ fiscal
relations towards a rule-based pattern as per the recommended criteria, in
which the latter are in better positions in terms of the fund devolution they
received compared to the earlier regimes.
8.102 The three District Councils have achieved substantial progress on their own
tax revenue collection at a rate of 10% per annum since 2010-11, while the
inflation-adjusted own tax revenue receipts have also recorded substantial
increases. The progressive revenue efforts by the District Councils have
resulted in the generation of more revenue in recent years. The taxes levied by
the three District Councils are as follows:
CADC LADC MADC

(1) Professions Tax (1) Professions Tax (1) Professions Tax
(2) Land Revenue (2) Land Revenue (2) Land Revenue
(3) Trade License (3) Trade License (3) Trade License
(4) Tax on Boat (4) Motor Vehicles (4) Motor Vehicles
(Parking) (Parking)
(5) Tax on Entry of (5) Tax on Entry of
Vehicles Vehicles
(6) Tax on Entry Goods (6) Animal Tax
(7) Entertainment Tax
8.103 LADC has introduced the largest number of taxes. This includes a tax on the
entry of goods into the market and an entertainment tax, which are not
collected in other District Councils, while MADC is the only Council that has
introduced an animal tax. The effort of the LADC to mobilise more tax revenue
sources is commendable. In the meantime, MADC also introduced a
compensation cess under the MADC (Land and Revenue) Act, 2018, reshaping
the trend of its own tax revenues upward in recent years. The attempt of the
MADC in the introduction of an additional levy within the existing tax
structure is commendable. At the same time, the non-resilient nature of its
own tax revenue sources necessitates that CADC show more effort to further
mobilise tax revenues to enhance the Council's financial autonomy. The
Commission feels that it would be desirable to incentivise the efforts of the
District Councils to mobilise additional sources of revenues through grants
from the Consolidated Fund of Mizoram on the basis of well-defined criteria.
8.104 While emphasising the need to increase their own tax and non-tax revenue to
give the District Councils more financial autonomy, their performances in
~ 286 ~
__________________________________________________________________________________
financial metrics, which implicate revenue efforts, are of critical importance.

The Commission examines the tax and non-tax revenue efforts of the three
District Councils using three measures, such as own revenues as a percentage
of the Council’s total expenditure and State fund devolution, and own
revenues per person. These findings are presented in Tables 8.16, 8.17 and
8.18. The three District Councils show different performances across the three
measures. That is, the MADC has the highest average tax efforts relative to
the total expenditure and relative to State fund devolution, while the LADC
has the best performance as its average own revenues (tax and non-tax) per
person are the highest among the three District Councils.
8.105 In addition to the tax and non-tax efforts, the fiscal dependency of the District
Councils in comparison to fiscal autonomy is assessed. Tables 8.19 and 8.20
show that the fiscal dependency ratios are 98.89%, 98.85%, and 98.75% in
CADC, MADC, and LADC, respectively, while the fiscal autonomy index has
shown the reverse pattern, in which LADC has the highest autonomy followed
by MADC and CADC. The high dependency ratios of more than 98% in all
District Councils necessitate adequate fiscal policy discourses because they
implicate financial accountability issues on the part of the District Councils.
8.106 In view of the need to strengthen the financial position of the District Councils
through the mobilisation of more revenues from their own sources so that they
can have more financial autonomy, the Commission considers it prudent to
take into account the revenue efforts (tax or non-tax or own revenue efforts)
while deciding the criteria for horizontal fund devolution among the District
Councils.
8.107 The Commission observes a high buoyancy of tax and non-tax revenues in all
District Councils with respect to population growth. The major tax revenue
sources, namely the professions tax, land revenue, and trade license, are also
found buoyant to population growth. On the other hand, though significant,
the buoyancy coefficients for tax and non-tax revenues on GSDP are well
below one in all District Councils, indicating less than proportional responses
of their own revenues to economic growth. A look at the buoyancy estimates
of the major tax revenues also shows the same nature in most cases.
8.108 The buoyancy estimates show the significance of population on the own
revenue growth of the District Councils, and thus, it may be said that
population is a clear representation of the tax base in the areas. We consider
it fiscally prudent to adopt population as one of the key criteria with
substantial weight when it comes to the distribution of funds among the
District Councils.
8.109 At the same time, the non-buoyant revenue collection of the District Councils
on GSDP can be viewed as their inability to keep up with the pace of economic
growth in revenue collection. In other words, the existing tax structures in the
~ 287 ~
__________________________________________________________________________________
areas may not be resilient enough to leverage opportunities arising from

economic development - which brings about continuous changes in the nature
of occupations, housing, businesses, and lifestyles.
8.110 The professions tax is the most important source of tax revenue for all the
District Councils, accounting for nearly half of total tax revenue. As admissible
under article 276(2) of the Indian Constitution, the Councils collect this tax
by legislating their own regulations specifying rates for different income slabs
subject to the ceiling set by the Constitution, i.e., ₹2,500 per person per
annum. The ceiling, which was fixed well back in 1988, has failed to capture
the changing income distribution. This is one of the main reasons why the tax
revenue of the District Councils is responding to economic growth less than
proportionately. It is understood that revising the ceiling is beyond the
legislative competence of either the State or the District Councils as it would
involve a constitutional amendment. However, revision of the rate of tax for
various classes of persons engaged in different types of professions, trades,
and callings within the ceiling limit of ₹2,500/- is within the authority of the
respective District Councils. The State Government revised the rates of
professions tax for various classes of persons in 2011 via Notification
No.J.11020/1/05-TAX dated 23.05.2011 within the Constitutional ceiling
limit, resulting in a significant increase in tax collection. To boost the District
Councils' own revenue receipts, the Commission recommends that the
District Councils revise the rates of professions tax within the ceiling
limit imposed by the Constitution for different classes of persons on the
lines of the rates fixed by the State Government in the year 2011 not
later than the 31st March, 2024.
8.111 The non-revision of tax rates and user charges by the District Councils for a
long time is an issue that has to be addressed immediately by the Councils.
For example, the tax rates on entry of vehicles have not been revised since it
was introduced in 2005 and 2008 in MADC and LADC, respectively. The rates
of major taxes are not revised regularly and have not changed for many years.
Revision of tax rates at regular intervals is necessary keeping in view the price
escalation and increasing earnings among the people. Therefore, it is
recommended that the District Councils should review rates of taxes and
non-tax revenues at regular intervals of every three years as a measure
of fiscal prudence and efforts on their part.
8.112 Collecting tax revenues is a fundamental way for District Councils to generate
revenue that allows them to fund development efforts in education, sanitation,
infrastructure, and other social assets, giving them more financial autonomy.
Currently, the three District Councils in Mizoram levy nine taxes: seven in
LADC, six in MADC, and four in CADC. Each District Council must make an
effort to mobilise additional tax sources within its legislative competence and
administrative jurisdictions.
~ 288 ~
__________________________________________________________________________________
8.113 First, while property tax regime has not been implemented in the District
Councils, all the Councils collect building tax through the implementation of
their respective revenue assessment regulations. Typically, fixed tax rates are
imposed on building floors let out, with rates ranging from ₹10 to ₹100 per
year per floor depending on the type of building (pucca, semi-pucca and
katcha). This fixed rate structure, in the absence of a continuous review
mechanism, does not result in progressive revenue collection for the Council
in line with economic development, but rather in declining real revenue
collection over time. Meanwhile, MADC, by notification dated 7th February,
2022, under MADC (Taxes and Rent on Buildings) Regulation 2013, has
introduced building taxes with nominal fixed registration fees, with building
tax being assessed according to the floor areas. Separate rate structures have
been imposed in different locations (market area, other areas, and the
outskirts) for different building types (reinforced cement concrete, semi-RCC
type buildings, and others). Though the MADC is only in the assessment
process, this is a commendable effort and is considered a move in the right
direction towards mobilisation of additional tax revenues by the District
Council. This tax is not property tax per se, but it is seen as a part and parcel
of the coming of property taxes in the District Councils in a more organised
form in the foreseeable future. A study on the devolution of funds to
Autonomous District Councils, Urban Local Bodies and Rural Local Bodies
commissioned by us suggests the introduction of building taxes, determined
according to usage, having separate rates with progressive assessment for
different types of buildings in different locational zones, and rationalisation of
rates and administration at regular intervals in all the District Councils.
Paragraph 8(2) of the Sixth Schedule to the Constitution authorizes the
District Councils to make regulations for the levy of taxes on buildings too.
Considering that Property Tax is a buoyant source of revenue for local
bodies the world over and in view of an enabling provision in paragraph
8(2) of the Sixth Schedule to the Constitution, the Commission
recommends that an appropriate regulation for the levy and collection of
Property Tax be framed by all the District Councils not later than the 31st
March, 2024 on the lines of the Property Tax laws for urban local bodies
being in force under the State Government.
8.114 Second, stamp duties and registration fees have not been levied in all the
District Councils, but mortgage fees have been imposed on the land used as
collateral for loans obtained by government employees within their
jurisdictions. The District Councils also collect a nominal amount as a land
transfer fee in the process of land ownership transfer and name change in the
land settlement documents. Thus, it is clear that the District Councils collect
a certain amount of revenue on matters related to the transfer of land
ownership, mutation, and mortgage within their jurisdictions, which may be
brought under the Stamp and Registration regime. A study commissioned by
us finds the necessity of formalising revenue collections by the District
Councils on land ownership transfers, mutations, and registrations.
~ 289 ~
__________________________________________________________________________________
8.115 In this regard, it is observed that Section 1(2) of the Indian Stamp (Mizoram
Amendment) Act, 2016, which amended the Indian Stamp Act, 1899, extends
the coverage of the Act to the whole of the State of Mizoram without excluding
the District Councils. In the meantime, the Mizoram Registration Rules, 2015,
framed under Section 69 of the Registration Act, 1908, exclude the tribal areas
under the Sixth Schedule to the Constitution of India from the operation of
the rules and, in effect, from the operation of the Registration Act, 1908, within
the tribal areas of the three District Councils. With a view to augment the
own source revenue of the District Councils, the Commission
recommends that the Indian Stamp (Mizoram Amendment) Act, 2016,
which extends to the jurisdiction of the District Councils too, be
implemented in letter and spirit for the levy, collection, and
appropriation of Stamp Duty by the District Councils. Further, the
Registration Act, 1908, should also be extended to the District Councils
through a suitable amendment to the Mizoram Registration Rules, 2015,
for the levying, collection, and appropriation of registration fees by the
District Councils.
8.116 Third, in anticipation of the implementation of the State Government

notification, vide No.C.13016/3/2010-DCA dated 29.08.2011, which
entrusted the functions of collection of road tax, goods tax, and passenger tax
for the vehicles registered within the District Council areas subject to the
amendment of the relevant State rules, the three District Councils passed
regulations on motor vehicle taxations, viz., CADC (Motor Vehicle Taxation)
Regulation, 2014, LADC (Motor Vehicles Taxation) Regulation, 2013, and
MADC (Taxes on Motor Vehicles) Regulation, 2014. However, these regulations
have not been implemented to date, and no revenues have been generated
from them due to lack of concrete efforts on the part of the State government
to amend related State rules to facilitate implementation of these regulations.
In this aspect, the State Government in Transport Department observed that
the 1st State Finance Commission of Mizoram recommended sharing 15% of
the State’s own tax revenues with the local bodies consisting of the three
District Councils. In addition to that, a huge amount of funding has been
recommended as a "non-plan deficit grant." Moreover, plan funds over and
above the aforesaid grants ought to be given to the District Councils. On the
23rd May, 2015, a meeting between the Finance Department and the Transport
Department resolved that the Government notification dated 29.08.2011
issued by the District Council Affairs Department and published in the Official
Gazette had been superseded by the acceptance of the 1st State Finance
Commission's recommendation, and thus the sharing of receipts from motor
vehicles tax was deemed inappropriate. The views for and against the issue
are considered by the Commission in depth, along with the rationale for the
establishment of the District Councils. After due deliberation, the
Commission recommends that suitable amendments to the rules be made
~ 290 ~
__________________________________________________________________________________
by the State Government as per the Government notification of 2011

with a view to enabling the District Councils to levy, collect, and
appropriate motor vehicles tax within their respective jurisdictions.
8.117 Fourth, as noted earlier, the LADC has introduced a tax on the entry of goods
into the market for the scheduled items at a rate of 1-3% ad valorem based on
GST/VAT invoices. Although the business community is concerned about the
tax's impact on consumer prices, it is thought to have a significant buoyancy
with respect to economic growth. So, while appreciating the effort of the LADC
to levy an entry tax that is seen as having lucrative revenue potential in the
future, there is a need to have its rationalisation at regular intervals and
continued surveillance so as to prevent a heavy tax burden from passing on
to the consumers. The LADC has also recently introduced an entertainment
tax on all cable TV subscribers, which is common in other areas. In the age of
fast-growing technology, it is necessary to have active surveillance of the
revenue potentials from emerging lifestyles and new technology, which would
widen the scope of the existing tax levy. Further regulation and collection of
animal tax, though minimal as of now, in the MADC is a welcome move, as
this tax has an affinity with the lives of tribal people who have been practicing
domestication of animals (pigs, chickens, dogs, etc.) since unknown history
till date. Therefore, it is recommended that the following taxes be
introduced in the three District Councils in Mizoram viz. (1) tax on entry
of goods into the market; (2) entertainment taxes; and (3) animal tax.
8.118 The burgeoning revenue expenditure with a growing share of committed

expenditures on salary & allowances and pension & other benefits implicates
squeezing of the fiscal spaces of the District Councils towards creation of
capital assets. More than 90% of the revenue expenditure of the District
Councils is taken up by expenses on salaries and allowances as well as
pension and other retirement benefits. As such, a substantial amount of
resource allocation is directed towards non-productive expenditures. Thus,
the Commission recommends that expenditure control legislation may
be made by the District Councils with a clear set of fiscal rules
determining realistic short-term, medium-term, and long-term targets
for fiscal parameters to ensure transparency and accountability on the
allocation of public resources.
8.119 The three District Councils have different accounting formats in the
presentation of their annual budgets. For example, budgetary variables such
as own tax and own non-tax revenues are not segregated clearly, and a clear
classification of expenditures between revenue and capital heads is not seen
in the budget books of these District Councils. At the same time, no detailed
classification is made on the tax devolution, item-wise (GST, land revenue,
etc.), to the District Councils in the State Government budget, and the budgets
of the District Councils do not clearly reflect the detailed sources from which
~ 291 ~
__________________________________________________________________________________
funds were received. The State Government, in its demand for grants, simply
classifies fund devolution to the District Councils into four major categories:
GIA (salary), GIA (non-salary), grants for capital asset creation, and CSS. In
such an accounting system of the State Government as well as the District
Councils, it is rather difficult for the Commission to evaluate the
implementation of the recommendations of the 1st SFC, which recommended
the devolution of a share of taxes to the District Councils as well as grants-in-
aid. Also, it is impossible to conduct a detailed analysis of revenues from
various tax and non-tax sources. Therefore, the Commission recommends
that a uniform accounting format for the budget be adopted in all the
District Councils in consultation with the Accountant General of
Mizoram. At the same time, devolution of funds to District Councils may
be accorded in the detailed heads (share of tax revenues, GIA, etc.) of the
State Government budget too.
~ 292 ~
CHAPTER NINE
ASSESSMENT OF GAPS IN FINANCIAL RESOURCES AND SCHEME OF

FISCAL DEVOLUTION
9.1 This chapter is inevitably the core of the report of the 2nd State Finance
Commission of Mizoram, containing the very scheme for vertical devolution of
funds from the State Government to the local bodies along with the various
levels of horizontal devolution of funds between the different local bodies viz.
the rural local bodies (i.e. Village Councils), urban local bodies and the
Autonomous District Councils for the 5 years spanning between 2021-22 to
2025-26 as per our terms of reference.
9.2 It is considered pertinent to reiterate herewith the provisions in paragraph 3(1)

of the terms of reference which enjoin upon the Commission to make
recommendations regarding the principles governing
(i) the distribution between the State and the Rural Local Bodies, Urban
Bodies and the Autonomous District Councils of the net proceeds of the
taxes, duties, tolls and fees leviable by the State, which may be divided
between them to enable these bodies to perform the functions assigned,
and which may be assigned to it under any laws in force or orders, and
the allocation between the Rural Local Bodies, Urban Local Bodies and
the Autonomous District Councils at all levels of their respective shares
of such proceeds;
(ii) the determination of the taxes, duties, tolls and fees which may be
assigned to, or appropriated by, the Rural Local Bodies, Urban Local
Bodies and the Autonomous District Councils;
(iii) the grant-in-aid to the Rural Local Bodies, Urban Local Bodies and the
Autonomous District Councils from the Consolidated Fund of Mizoram.
9.3 The assessment of the pre-devolution revenue gaps in resources, composition

of the divisible pool for devolution to local bodies, the quantum of vertical
devolution and the horizontal distribution of resources across the local bodies
at various levels in various stages will form part of the scheme of devolution
that will be presented in this chapter.
Assessment of gaps in financial resources of local bodies
9.4 The first step towards framing the scheme of devolution for the local bodies is
undertaking an assessment of the gaps in the financial resources of the local
bodies at the aggregate level, with the resource gap to be filled through
devolutions from the State government. The resource gap in this context is the
revenue gap arrived at before the devolution of funds from the State.
~ 293 ~
__________________________________________________________________________________
9.5 To begin with, the projection of revenue expenditure requirements of the rural
local bodies, viz., village councils, at the aggregate level has already been made
in Chapter 6, and the methodology for assessment of revenue expenditure
requirements need not be elaborated again. The own source revenue for rural
local bodies, consisting of their own tax and non-tax component, has already
been assessed. The rural local body grants from the 15th Finance Commission
for the state of Mizoram are also readily available. Thus, the pre-devolution
revenue gap for the rural local bodies is assessed as shown in the table below.
Table 9.1 Assessment of revenue gap for rural local bodies

(₹ in lakh)
Sl.
Items 2021-22 2022-23 2023-24 2024-25 2025-26
No.
Projected non-
municipal population
1 997904 1017722 964943 984156 1003752
urban area for the
year 2021-22 and
2022-23 only)
Projected revenue
expenditure
requirements (₹ in
lakh) @₹900 per
2 8981.14 9709.07 9757.89 10549.27 11404.93
capita per year with
the rate enhanced by
6% per annum to
adjust for inflation
15th FC Rural Local
3 6900.00 7100.00 7200.00 7600.00 7400.00
Body Grants
Projected own tax
revenue of VCs
(Property tax
4 9.62 10.39 11.22 325.74 336.97
projected to be levied
and collected from
2024-25)
Projected own non-tax
5 622.93 685.22 753.75 829.12 912.03
revenues of VCs
Pre-devolution
revenue gap to be
6 filled from State 1448.58 1913.46 1792.92 1794.40 2755.92
devolution
(2-3-4-5)
9.6 Second, the projection of revenue expenditure requirements of the two urban
local bodies at the aggregate level has already been made in Chapter 7. The
own source revenue for urban local bodies has already been assessed. The
urban local body grants from the 15th Finance Commission for the state of
~ 294 ~
Chapter 9 : Scheme of fiscal devolution
__________________________________________________________________________________
Mizoram are also readily available. Thus, the pre-devolution revenue gap for
the urban local bodies is assessed as shown in the table below.
Table 9.2 Assessment of revenue gap for urban local bodies

(₹ in lakh)
Sl.
Items 2021-22 2022-23 2023-24 2024-25 2025-26
No.
Projected municipal
population
1 386724 396554 479277 490961 502930
urban town from
2023-24 and
onwards)
Projected revenue
expenditure
requirements of
ULBs (₹ in lakh)
2 @₹1300 per capita 5,027.41 5,464.52 7,000.70 7,601.65 8,254.19
per year with the
rate enhanced by
6% per annum to
adjust for inflation
Aggregate share of
Urban Local Body
3 grants from 15th 3400.00 3500.00 3700.00 3900.00 4000.00
Finance
Commission
Projected own tax
4 revenue of AMC 376.04 429.43 490.40 560.02 639.53
(Property Tax)
Projected own non-
5 321.60 370.42 439.06 476.94 509.77
tax revenue of AMC
Projected own tax
6 revenue of LMC 27.70 55.40 63.71
(Property Tax)
Projected own non-
7 30.91 61.83 66.16
tax revenue of LMC
Aggregate own
8 697.64 799.85 988.07 1154.19 1279.17
revenues of ULBs
Pre-devolution
revenue gap to be
9 929.77 1164.67 2312.63 2547.46 2975.02
filled from State
devolution [2-3-8]
9.7 We proceed towards making an assessment of the revenue gap of the three
autonomous district councils from the assessed revenue expenditure
requirements and their own source revenues as stated in Chapter 8. Since the
15th Finance Commission makes no recommendation for grants-in-aid to the
district councils, the figures for the same are zero throughout the award period
~ 295 ~
__________________________________________________________________________________
of 5 years. The pre-devolution revenue gap for the autonomous district

councils in aggregate is, thus, assessed as shown in the table below.
Table 9.3 Assessment of revenue gap for autonomous district councils
(₹ in lakh)
Sl.
Items 2021-22 2022-23 2023-24 2024-25 2025-26
No
Projected revenue
expenditure
1 11881.47 12990.83 14171.71 15176.92 16220.02
requirements of
CADC
Projected revenue
2 expenditure 20409.81 22039.51 23101.47 24657.31 26063.33
requirements of LADC
Projected revenue
expenditure
3 17669.28 18866.00 20197.70 21611.01 23135.30
requirements of
MADC
Aggregate revenue
4 expenditure 49960.56 53896.34 57470.89 61445.25 65418.65
requirements of ADCs
Projected own tax
5 83.77 74.78 81.21 85.63 90.40
revenues of CADC
Projected own tax
6 156.44 152.10 167.98 177.32 184.18
revenues of LADC
Projected own tax
7 revenues of MADC 107.98 123.36 132.59 136.97 141.86
Aggregate own tax

8 revenues of ADCs 348.19 350.24 381.78 399.92 416.44
[5+6+7]
Projected own non-
9 33.17 57.59 54.41 61.22 70.38
tax revenues of CADC
Projected own non-
10 tax revenues of LADC 98.85 103.40 113.49 120.78 127.58
Projected own non-

11 85.07 97.83 124.75 154.21 198.13
tax revenues of MADC
Aggregate own non-
12 tax revenue of ADCs 217.09 258.82 292.65 336.21 396.09
[9+10+11]
Grants from 15th
13 0.00 0.00 0.00 0.00 0.00
Finance Commission
Pre-devolution
revenue gap to be
14 filled from State 49395.28 53287.28 56796.46 60709.12 64606.12
devolution
[4-8-12-13]
~ 296 ~
__________________________________________________________________________________
Composition of the divisible pool
9.8 Perhaps the first crucial factor in determining the scheme of devolution of
resources to the local bodies is the decision on the specific taxes, duties, tolls,
and fees levied by the State that must be shared between the State and the
local bodies. In other words, a key concern for the Commission is determining
the divisible pool of resources that falls under the purview of the
Constitutional requirements. State goods and services tax, sales tax, taxes on
vehicles, land revenue, professions tax, passenger and goods tax, stamp duty
and registration fees, and state excise are the main sources of State’s Own Tax
Revenue. The State’s Own Non-Tax Revenues largely consist of revenues from
fiscal services, interest receipts, dividends and profits, revenue receipts from
general services, economic services as well as social services. The majority of
general service receipts come from state lotteries, departmental receipts in the
form of fees, fines, and penalties, as well as contributions and recoveries for
pension and other retirement benefits. Social services revenue mostly consists
of departmental receipts in the form of user charges, with water supply fees
serving as the major source of funding. Receipts from economic services
consist of receipts from environmental forestry and wildlife, tourism, roads
and bridges, mineral concession fees, rents and royalties and user charges
from the supply of electric power.
9.9 The National Institute of Public Finance and Policy (NIPFP), New Delhi in its
working paper series No. 263 titled “State Finance Commissions : How
successful have they been in empowering Local Governments?” analysed,
among others, the composition of the divisible pool as recommended by
various State Finance Commissions. The working paper reveals that majority
of the Commissions recommend sharing of a certain percentage of the net
proceeds of State’s own tax revenue with the local bodies. The 4th State Finance
Commission of Rajasthan, 5th State Finance Commission of Haryana, 4th State
Finance Commission of Odisha, 5th State Finance Commission of Bihar, 5th
State Finance Commission of Kerala, 5th State Finance Commission of Tamil
Nadu, 5th State Finance Commission of Punjab, 5th State Finance Commission
of Sikkim, 4th State Finance Commission of West Bengal are recent examples
of SFCs recommending net proceeds of State’s own tax revenue as the divisible
pool.
9.10 There are also Commissions recommending the sharing of a specified

percentage of the state’s own revenue receipts, which are inclusive of both tax
revenues and non-tax revenues. The 4th State Finance Commission of
Karnataka, the 4th State Finance Commission of Maharashtra, and the 4th
State Finance Commission of Uttar Pradesh recommend sharing a specified
percentage of their own revenue receipts with the local bodies. The insertion
of the word “fees” in clause 1(a) of article 243-I and clause 1(a) of article 243Y
of the Constitution apparently weighs the consideration of these Commissions
in favour of including non-tax revenues within the divisible pool of resources.
~ 297 ~
__________________________________________________________________________________
Besides, there are cases of SFCs recommending a portion of total revenue

receipts, comprising own revenues and tax devolutions from the Central
Government, within the divisible pool of resources. The 2nd State Finance
Commission of Gujarat and the 3rd State Finance Commission of Manipur are
some such examples.
9.11 In this context, the statutory provisions in section 3(1)(a) of the Mizoram
Finance Commission Act, 2010 read with the provisions in clause 1(a) of article
243-I and clause 1(a) of article 243Y of the Constitution of India allow sharing
of “the net proceeds of taxes, duties, tolls and fees leviable by the State”. The
determination of the divisible pool i.e., either own tax revenues or own non-
tax revenues for devolution to local bodies varies across States as can be seen
in the preceding paragraphs. The 1st State Finance Commission of Mizoram
recommended global sharing of 15% of the State’s Own Tax Revenues (SOTR)
between the State and local bodies to the exclusion of the State’s Own Non-
Tax Revenues.
9.12 We believe that taxes, duties, tolls, and fees levied by the State of Mizoram
that can be distributed between the state and local bodies essentially come
under the state’s own tax revenues. In fact, stamp duties and registration fees
levied for the transaction of properties are also classified under tax revenues
in the state budget. The state’s own non-tax revenues are basically in the form
of user charges collected for the provision of various services to citizens by the
state government, such as water tariffs, power tariffs, etc., wherein a
substantial amount of subsidy is provided for the provision of such services.
Hence, the Commission does not consider it appropriate to include the
proceeds from the state’s own non-tax revenues within the divisible pool of
resources for devolution to the local bodies. Thus, the divisible pool for
devolution will comprise taxes, duties, tolls, and fees that fall within the
own tax revenue of the state government.
Quantum of vertical devolution
9.13 After determining the composition of the divisible pool of resources, the next
question in framing the scheme of devolution is whether or not to apply the
principle of “net proceeds” for determination of the quantum of vertical
devolution on account of the comparatively low collections of State Own Tax
and Non-Tax Revenues vis-à-vis the high cost of collection of the taxes, duties,
and fees levied by the State. The 1st State Finance Commission of Mizoram
distributed the gross state’s own tax revenues without applying the “net
proceeds” of the divisible pool of resources. The Constitutional and statutory
provision is to distribute the “net proceeds” of the divisible pool of resources.
Article 279 of the Constitution defines the term “net proceeds” in relation to
any tax or duty as the proceeds thereof reduced by the cost of collection, and
the net proceeds have to be ascertained and certified by the Comptroller and
Auditor General of India. The Commission opines that the constitutional
~ 298 ~
__________________________________________________________________________________
provision has to be followed in determining the quantum of devolution

by applying the “net proceeds" i.e., proceeds of the state’s own tax
revenue minus the cost of collection of such taxes.
9.14 The cost of collection of taxes as determined by the Principal Accountant

General, Mizoram since the year 2015-16 up to 2020-21 is reflected in the
table below, registering a compound annual growth rate of 1.9% during the
six years under consideration.
Table 9.4 Cost of collection of taxes

(₹ in crore)
Sl.
Taxes 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
No.
1a Goods and Services Tax
1b Revenue collection NA NA 526.72 1388.36 1388.58 1355.82

Expenditure on
1c 0 0 0.94 0 0 0
collection
Cost of tax collection
1d NA 0 0.18 0 0 0
in %
2a Land Revenue
2b Revenue collection 8.88 8.58 8.29 8.64 9.05 20.74

Expenditure on
2c 18.75 18.54 21.32 22.05 24.87 23.69
collection
2d 211.15 216.08 257.18 255.21 274.81 114.22
in %
3a Stamp and Registration Fees

Expenditure on
3c 0.48 0.3 0.19 0.81 0.64 0.64
collection
3d 13.45 9.20 5.94 18.28 10.94 13.53
in %
4a State Excise

Expenditure on
4c 26.28 28.9 30.19 32.01 37.48 35.89
collection
4d 43.37 39.99 45.86 48.99 1372.89 3738.54
in %
5a Taxes on Sales, Trade, etc.

Expenditure on
5c 13.44 15.27 16.83 17.42 0.61 0.29
collection
5d 5.44 4.96 6.93 12.82 0.52 0.26
in %
~ 299 ~
__________________________________________________________________________________
Sl.
Taxes 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
No.
6a Taxes on Vehicles

Expenditure on
6c 8.84 8.7 10.22 10.4 13.21 13.41
collection
6d 45.47 33.79 32.36 27.11 32.49 46.23
in %
Total expenditure
on tax collection 67.79 71.71 79.69 82.69 76.81 73.92
(1c+2c+…+6c)
Source: Accounts at a Glance for the year 2019-20 and 2020-21 published by Accountant
General, Mizoram
9.15 The cost of collection of taxes for the years 2021-22 up to the year 2025-26
may be projected using the figures for 2020-21 (i.e. ₹73.92 crore) as the base
with a growth rate of 1.9% per annum. Thus, the projected cost of collection
of taxes that must be reduced from the gross state’s own tax revenue to arrive
at the net proceeds of state’s own tax revenue is determined as follows:
Table 9.5 Projections of cost of tax collection

(₹ in lakh)
Particulars 2021-22 2022-23 2023-24 2024-25 2025-26
Cost of tax collection 7532.45 7675.56 7821.40 7970.01 8121.44
9.16 The quantum of vertical devolution (or vertical sharing) of the net proceeds of
the taxes, duties, tolls, and fees leviable by the state between the state
government on the one hand and the local bodies consisting of the village
councils, urban local bodies, and autonomous district councils on the other
hand is indeed a key issue for the Commission to take a call. The quantum of
vertical devolution as recommended by State Finance Commissions appears
to vary significantly across different states, perhaps due partly to the variation
in the level of devolution of functions and functionaries across the country.
The table below shows the recommended devolution as a percent of State’s
own tax revenue across different States across the years.
~ 300 ~
__________________________________________________________________________________
Table 9.6 Recommended devolution as percent of States’ Own Tax Revenue
2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018-

State
11 12 13 14 15 16 17 18 19
Assam
16.61 4.01 4.05 4.91 5.82 6.59 6.46 8.30 7.27
(3rd-4th-5th)
Bihar
4.89 4.30 3.74 3.42 3.70 9.73 13.60 12.45 15.90
(3rd-4th-5th)
Chhattisgarh
5.25 5.19 6.65 6.93 7.25 7.63 7.88
(1st-2nd)
Haryana
3.90 2.45 2.53 2.76 2.97 3.08 5.68 4.88 5.02
(3rd-4th-5th)
Himachal
Pradesh 2.80 2.46 2.72 2.57 3.01 2.85 3.29 3.45 3.84
(3rd-4th-5th)
Karnataka
35.99 33.93 33.41 38.28 40.29 42.20 44.11 48.04 45.11
(3rd-4th)
Kerala
13.82 14.88 15.78 17.60 18.42 18.95 20.39 20.70 20.23
(3rd-4th)
Madhya
4.86 7.30 7.65 7.14
Pradesh (4th)
Manipur (3rd) 61.12 49.82 56.56 50.52 53.02 51.19 54.88 57.78
Mizoram (1st) 12.29 11.47 12.06 13.89
Odisha
8.01 6.67 5.96 5.31 4.52 2.92 2.88 2.48 2.31
(2nd-3rd-4th)
Punjab
2.56 4.25 4.01 4.27 4.55 4.95 4.48 3.77 3.52
(3rd-4th-5th)
Rajasthan
6.41 6.76 6.88 6.81 7.14 7.66 8.32
(3rd-4th)
Sikkim
1.75 0.84 0.57 0.47 0.47 1.85 1.84 1.95 2.03
(2nd-3rd-4th)
Tamil Nadu
8.22 7.51 8.93 10.05 10.97 12.50 12.97 11.01 11.43
(3rd-4th-5th)
Tripura
7.46 5.92 5.56 5.68 5.86
(2nd-3rd)
Uttar Pradesh
10.60 8.00 10.75 14.69 10.97 11.87
(3rd-4th)
Uttarakhand
14.81 9.33 9.42 9.48 9.65 9.91 11.54 11.08 11.80
(2nd-3rd)
West Bengal
4.24 3.59 2.73 3.14 3.19 2.60 2.79 3.21 3.71
(3rd-4th)
All States
11.59 11.18 11.53 13.08 13.19 13.43 15.02 15.85 15.66
average
Source: NIPFP working paper series No. 263 State Finance Commissions : How successful
have they been in empowering Local Governments?
9.17 The quantum of vertical devolution is indeed dependent upon various factors,
prominent among them being the level of devolution of functions and
functionaries to the local governments to facilitate them to deliver basic public
services, the size of the own tax revenue receipts of the respective States, the
population to be served by the respective local bodies, the level of committed
expenditure to be borne by the State governments on salaries, pensions and
interest payments, etc. The recommended percentage of devolution as shown
in Table 9.6 may not show the real picture unless the same is translated into
per capita terms. The table below, thus, highlights the per capita devolution
~ 301 ~
__________________________________________________________________________________
recommended by various State Finance Commissions during the regime of the

13th Finance Commission as well as the 14th Finance Commission.
Table 9.7 Per capita devolution recommended by State Finance Commissions
Average of
Sl.
States
No. 2010-11 to 2014-15 2015-16 to 2019-20
1 Andhra Pradesh (3rd) 250.19
2 Assam (3rd-4th-5th) 167.56 234.89
3 Bihar (3rd-4th-5th) 61.82 359.00
4 Chhattisgarh (1st-2nd) 309.77 504.32
5 Gujarat (2nd) 433.50
6 Haryana (3rd-4th-5th) 250.92 741.81
7 Himachal Pradesh (3rd-4th-5th) 182.54 368.04
8 Karnataka (3rd-4th) 3228.80 6101.04
9 Kerala (3rd-4th) 1407.86 3004.26
10 Madhya Pradesh (4th) 423.37
11 Maharashtra (3rd) 1088.14
12 Manipur (3rd) 700.76 1004.31
13 Mizoram (1st) 149.65
14 Odisha (2nd-3rd-4th) 209.41 146.75
15 Punjab (3rd-4th-5th) 289.21 456.96
16 Rajasthan (3rd-4th) 293.04 472.08
17 Sikkim (2nd-3rd-4th) 47.32 212.99
18 Tamil Nadu (3rd-4th-5th) 904.60 1427.74
19 Tripura (2nd-3rd) 153.02
20 Uttar Pradesh (3rd-4th) 317.52 449.53
21 Uttarakhand (2nd-3rd) 645.74 1367.70
22 West Bengal (3rd-4th) 111.71 152.72
All States average 597.62 1136.10

Source: NIPFP working paper series No. 263 State Finance Commissions : How successful
have they been in empowering Local Governments?
9.18 The above table reveals that the per capita devolution during the period from
2015-16 to 2019-20 in the case of Mizoram was the second lowest, next only
to the state of Odisha. The Commission understands that a fine balancing act
has to be undertaken while determining the quantum of vertical devolution
~ 302 ~
__________________________________________________________________________________
taking into account the major demands on the resources of the State
Government, especially on account of civil administration, maintenance of law
and order, debt servicing and other committed expenditures while at the same
time doing justice to the basic requirements of the local bodies to enable them
to have financial autonomy to perform functions analogous to the functions of
other local bodies constituted under Part IX (Panchayats) and Part IX-A
(Municipalities) of the Constitution.
9.19 The Commission understands that the 14th Finance Commission devolved
42% of the divisible pool with the State governments while the 15th Finance
Commission also followed the recommendations of its predecessor but
reduced the share of the State governments by 1 percentage point on account
of the creation of the Union Territory of Jammu & Kashmir and Ladakh, which
hitherto was a State.
9.20 The view of the State Government in Finance Department is also duly taken
into consideration by the Commission while determining the quantum of
vertical devolution to the local bodies. The State government is in favour of
increasing the vertical devolution from 15% of State’s own tax revenue to a
substantial level on the plea that the erstwhile 15% vertical devolution of
State's own tax revenue was made before the merger of Plan and Non-Plan
classification, wherein a separate sectoral allocation was expected to be made
under Plan Expenditure.
9.21 The Commission, thus, consciously recommends a vertical devolution of

42 percent of the net proceeds of the State's own tax revenue for the
award period of 2021-22 to 2025-26, taking into account the need to give
local bodies financial autonomy to perform tasks similar to those of other
local bodies created under Part IX (Panchayats) and Part IX-A
(Municipalities) of the Constitution while, at the same time,
understanding the State government's steadily growing committed
expenditure requirements.
9.22 The quantum of vertical devolution for the award period is, thus, projected in
the table below.
~ 303 ~
__________________________________________________________________________________
Table 9.8 Quantum of vertical devolution

(₹ in lakh)
Sl.
Items 2021-22 2022-23 2023-24 2024-25 2025-26
No.
Projections of
State's Own
1 85,393.00 97,180.00 1,08,430.00 1,19,313.00 1,21,883.00
Tax Revenue
(SOTR)
Projected Tax
2 collection 7,532.45 7,675.56 7,821.40 7,970.01 8,121.44
charges
Net proceeds
of State's
3 77,860.55 89,504.44 1,00,608.60 1,11,342.99 1,13,761.56
Own Tax
Revenue (1-2)
Vertical
devolution
4 32,701.43 37,591.86 42,255.61 46,764.06 47,779.86
@42% of net
SOTR
Horizontal devolution : 1st level
9.23 After determining the quantum of vertical devolution, the next issue in the
scheme of devolution is the horizontal distribution of the amount so devolved
between the three types of local bodies in aggregate viz., the rural local bodies
(i.e. Village Councils), the urban local bodies (i.e., the Municipalities) and the
autonomous district councils.
9.24 The Commission has already made a rigorous assessment of the revenue
expenditure requirements of the local bodies, grants from the 15th Finance
Commission and their own source revenues for the award period of 5 years,
leading to the pre-devolution revenue gap for the local bodies. With no grants
recommended by the 15th Finance Commission, it is observed that the pre-
devolution revenue gap of the autonomous district councils is indeed very high
as compared to that of the rural local bodies and urban local bodies. In the
1st level of horizontal devolution, the Commission first attempts to fill
100% of the pre-devolution revenue gap of the rural local bodies and
urban local bodies in aggregate from the divisible pool so devolved to the
local bodies. The balance from the vertical devolution will be used to fill
the pre-devolution revenue gap of the ADCs to the extent possible. The
revenue deficit that still exists with the ADCs after tax devolution from
the divisible pool is proposed to be filled up from post devolution revenue
deficit grants for all the ADCs.
9.25 The assessed pre-devolution revenue gaps for the local bodies in aggregate and
the method of filling up the same through the tax devolution in the 1st level of
horizontal devolution is shown in the table below.
~ 304 ~
__________________________________________________________________________________
Table 9.9 1st level horizontal devolution to local bodies in aggregate

(₹ in lakh)
Sl.
Items 2021-22 2022-23 2023-24 2024-25 2025-26
No.
Pre-devolution
revenue gap of
1 1,448.58 1,913.46 1,792.92 1,794.40 2,755.92
rural local
bodies
Pre-devolution
revenue gap of
2 929.77 1,164.67 2,312.63 2,547.46 2,975.02
urban local
bodies
Pre-devolution
revenue gap of
3 Autonomous 49,395.28 53,287.28 56,796.46 60,709.12 64,606.12
District
Councils
Total pre-
devolution
4 51,773.63 56,365.41 60,902.01 65,050.98 70,337.06
revenue gaps
(1+2+3)
Net State's
5 Own Tax 77,860.55 89,504.44 1,00,608.60 1,11,342.99 1,13,761.56
Revenue
Tax devolution
6 @42% of net 32,701.43 37,591.86 42,255.61 46,764.06 47,779.86
SOTR
Tax devolution
1,448.58 1,913.46 1,792.92 1,794.40 2,755.92
7 to rural local
(100%) (100%) (100%) (100%) (100%)
bodies
Tax devolution
929.77 1,164.67 2,312.63 2,547.46 2,975.02
8 to urban local
(100%) (100%) (100%) (100%) (100%)
bodies
Tax devolution
to
30,323.08 34,513.74 38,150.06 42,422.20 42,048.92
9 autonomous
(61.39%) (64.77%) (67.17%) (69.88%) (65.09%)
district
councils
Post-
devolution
10 19,072.20 18,773.54 18,646.39 18,286.92 22,557.20
revenue deficit
in ADCs
Note: Figures in parentheses in the rows at Sl. 7, 8 & 9 represent the percentage of pre-
devolution revenue gaps being filled up through tax devolution
~ 305 ~
__________________________________________________________________________________
Horizontal devolution : 2nd level (Stage 1 and 2)
9.26 The 2nd level of horizontal devolution revolves around distribution of the tax
devolution between the Village Councils across the 11 districts in two stages
i.e., distribution of tax devolution district-wise in the 1st stage and distribution
between Village Councils within a district in the 2nd stage of horizontal
devolution on the basis of the principles of need and equity.
9.27 In the 1st stage of the 2nd level of horizontal devolution, we have used three
criteria, representing the needs of the district (i.e., population and area) along
with equity criteria (i.e., deprivation index) for horizontal distribution of tax
devolution across the districts. Population in this context is the non-municipal
population according to the Census, 2011 since the terms of reference
specifically require us to use the figures of Census, 2011 whenever population
is used as a criterion for devolution of taxes and grants-in-aid. The non-
municipal population of a district represents the needs to undertake
expenditure for providing basic public services to its residents. It is a simple
and transparent indicator that has a significant equalising impact. We have
assigned a weight of 60% to the non-municipal population in the 1st stage of
2nd level horizontal devolution.
9.28 Area is another criterion in the horizontal devolution formula on the ground
of need – the larger the area, greater is the expenditure requirement for
providing comparable services. The area in this context is also the non-
municipal area that are served by the Village Councils. The figures for
geographical area are as per the data furnished by the Mizoram Remote
Sensing Application Centre (MIRSAC) under Planning & Programme
Implementation Department. We have assigned a weightage of 30% to the area
criterion.
9.29 The third criterion in horizontal distribution of tax devolution is the lone equity
criterion, i.e., the deprivation index constructed from the gaps in 20 basic
facilities across the 11 districts as per the report of the Mission Antyodaya
survey, 2020, undertaken by the Ministry of Rural Development, Government
of India, available at the website https://missionantyodaya.nic.in. We have
assigned a weight of 10% to the deprivation index. The primary objective of
Mission Antyodaya is to survey and collect village infrastructure and service
data for nearly 600,000 villages in the country. The data collected from the
villages is aggregated to rank gram panchayats and highlight the gaps in basic
infrastructure facilities across various parameters. The survey is carried out
in conjunction with the People’s Plan Campaign (PPC) of the Ministry of
Panchayati Raj, and its purpose is to lend support to the process of
participatory planning for the Gram Panchayat Development Plan (GPDP). The
Commission utilises the gap report in the following 20 basic facilities as
highlighted in the Mission Antyodaya survey, 2020, across the 11 districts:
~ 306 ~
__________________________________________________________________________________
i) Primary school
ii) Middle school
iii) Watershed development project
iv) Community rainwater harvesting system
v) Warehouse for foodgrain storage
vi) Drinking water
vii) All weather road
viii) Internal pucca roads
ix) Public transport
x) Electricity for domestic use
xi) Common service centre
xii) Panchayat bhawan
xiii) Libraries
xiv) Banks
xv) Business correspondent with internet facility
xvi) Post office/sub-post offices
xvii) Internet/broadband facility
xviii) Public distribution system
xix) Health sub-centre
xx) Anganwadi centre
9.30 The ratio of gap is calculated for each district against each of the 20 basic
facilities aforementioned by dividing the number of villages where the facility
is absent with the total number of villages in the district. The ratios so arrived
at for the 20 basic facilities are added together to arrive at the combined ratio
of gaps. The deprivation index for a district is calculated by dividing the
combined ratio of gaps with 20 i.e., the total number of facilities wherein the
gaps are assessed for each district. The deprivation index “di” for the ith district
may be presented using the formula mentioned below:
di = (di1 + di2+ ….+di20)/20
where di1 is the ratio of gap in the first facility in a i th district to the total
number of villages in the district, di2 is the ratio of gap in the second facility in
a ith district to the total number of villages in the district and so on.
9.31 The detailed calculation of deprivation indices across the 11 districts from the
gap report in 20 basic facilities of the Mission Antyodaya, 2020 for the years
2021-22 and 2022-23 can be seen at Annexure 9.1 and the calculations of
deprivation indices for the years 2023-24 up to the year 2025-26 can be seen
at Annexure 9.2.
9.32 In the 1st stage of the 2nd level of horizontal devolution, the Commission splits
the calculation of the district-wise share into two phases, i.e., for the years
2021–22 and 2022–23, wherein Lunglei notified town areas are still governed
by village councils and hence included in the calculation of non-municipal
population, non-municipal area, and the deprivation index. For the years
2023–24 onwards, when elections to the Lunglei municipal council were held
and the municipality starts to become functional, the Lunglei notified town
~ 307 ~
__________________________________________________________________________________
area is excluded in the calculation of non-municipal population, non-

municipal area, and the deprivation index to arrive at the district-wise share.
9.33 The 1st stage of the 2nd level horizontal devolution across the districts for the
year 2021-22 and 2022-23 is, therefore, determined as follows:
Table 9.10 1st stage of 2nd level horizontal devolution for Village Councils
district-wise for the years 2021-22 and 2022-23
Distribution of non-municipal area
Deprivation index (i.e. gaps in 20

60% weightage to non-municipal
Distribution of deprivation index

Non-municipal area (in square
basic facilities across villages
horizontal distribution criteria

10% weightage to deprivation
Distribution of non-municipal
Inter se share in % as per the

based on Mission Antyodaya
Non-municipal population
Survey report of 2020)

(Census 2011)
kilometres)
population
population
(4+7+10)
District
index
area
1 2 3 4 5 6 7 8 9 10 11
Aizawl 74015 0.092 5.52 1981.05 0.095 2.84 0.37 0.076 0.76 9.12
Lunglei 131736 0.164 9.83 3422.26 0.163 4.90 0.56 0.115 1.15 15.89
Kolasib 83955 0.104 6.27 1586.39 0.076 2.27 0.31 0.064 0.64 9.18
Champhai 71916 0.089 5.37 1564.46 0.075 2.24 0.39 0.080 0.80 8.41
Mamit 86364 0.107 6.45 3009.94 0.144 4.31 0.54 0.111 1.11 11.87
Serchhip 65387 0.081 4.88 1466.78 0.070 2.10 0.39 0.080 0.80 7.78
Saitual 50591 0.063 3.78 1757.34 0.084 2.52 0.35 0.072 0.72 7.01
Khawzawl 36870 0.046 2.75 1164.93 0.056 1.67 0.39 0.080 0.80 5.22
Hnahthial 28488 0.035 2.13 1029.56 0.049 1.47 0.41 0.085 0.85 4.45
Siaha 56574 0.070 4.22 1519.21 0.072 2.17 0.49 0.101 1.01 7.41
Lawngtlai 117894 0.147 8.80 2458.64 0.117 3.52 0.65 0.134 1.34 13.66
Total 803790 1.000 60.00 20960.56 1.000 30.00 4.85 1.000 10.00 100.00
9.34 The 1st stage of the 2nd level horizontal devolution across the districts for the
year 2023-24 and onwards is also presented in the table below.
~ 308 ~
__________________________________________________________________________________
Table 9.11 1st stage of 2nd level horizontal devolution for Village Councils
district-wise for the years 2023-24 and onwards
Distribution of non-municipal area
Deprivation index (i.e. gaps in 20

Distribution of deprivation index

basic facilities across villages

Distribution of non-municipal

based on Mission Antyodaya
Non-municipal population
Survey report of 2020)

(in square kilometres)
Non-municipal area
(Census 2011)
population
population
(4+7+10)
Districts
index
area
1 2 3 4 5 6 7 8 9 10 11
Aizawl 74015 0.099 5.95 1981.05 0.095 2.84 0.37 0.078 0.78 9.57
Lunglei 74725 0.100 6.00 3366.99 0.161 4.83 0.43 0.091 0.91 11.75
Kolasib 83955 0.112 6.75 1586.39 0.076 2.28 0.31 0.066 0.66 9.68
Champhai 71916 0.096 5.78 1564.46 0.075 2.25 0.39 0.083 0.83 8.85
Mamit 86364 0.116 6.94 3009.94 0.144 4.32 0.54 0.114 1.14 12.40
Serchhip 65387 0.088 5.25 1466.78 0.070 2.10 0.39 0.083 0.83 8.18
Saitual 50591 0.068 4.06 1757.34 0.084 2.52 0.35 0.074 0.74 7.33
Khawzawl 36870 0.049 2.96 1164.93 0.056 1.67 0.39 0.083 0.83 5.46
Hnahthial 28488 0.038 2.29 1029.56 0.049 1.48 0.41 0.087 0.87 4.63
Siaha 56574 0.076 4.55 1519.21 0.073 2.18 0.49 0.104 1.04 7.76
Lawngtlai 117894 0.158 9.47 2458.64 0.118 3.53 0.65 0.138 1.38 14.38
Total 746779 1.000 60.00 20905.29 1.000 30.00 4.72 1.000 10.00 100.00
9.35 Following the inter se shares arrived at for Village Councils across the districts
district-wise for the award period, the amount of tax devolution as
recommended by the 2nd State Finance Commission is presented in the table
below.
~ 309 ~
__________________________________________________________________________________
Table 9.12 Tax devolution to Village Councils district-wise in the 1st stage of
2nd level of horizontal devolution
(₹ in lakh)
Districts 2021-22 2022-23 2023-24 2024-25 2025-26 Total
Aizawl 132.16 174.57 171.65 171.79 263.84 914.00
Lunglei 230.13 303.98 210.61 210.78 323.73 1279.22
Kolasib 132.93 175.59 173.53 173.67 266.74 922.47
Champhai 121.85 160.95 158.66 158.79 243.88 844.14
Mamit 171.92 227.09 222.36 222.55 341.80 1185.73
Serchhip 112.76 148.95 146.74 146.87 225.56 780.89
Saitual 101.59 134.20 131.39 131.50 201.96 700.63
Khawzawl 75.67 99.95 97.90 97.98 150.48 521.98
Hnahthial 64.40 85.06 83.10 83.17 127.74 443.47
Siaha 107.31 141.74 139.20 139.31 213.96 741.52
Lawngtlai 197.87 261.37 257.78 257.99 396.23 1371.24
Total 1448.58 1913.46 1792.92 1794.40 2755.92 9705.29
9.36 The 15th Finance Commission, in its report in paragraph 7.67, recommended
the distribution of rural local body grants between the different entities on the
basis of population and area in the ratio of 90:10 OR as per the accepted
recommendation of the latest State Finance Commission. On the basis of the
above recommendation, the Commission determines the share of village
councils district-wise upon the rural local body grants duly recommended by
the 15th Finance Commission following the inter se share of districts arrived
at in tables 9.10 and 9.11.
Table 9.13 District-wise share of rural local body grants from 15th Finance
Commission
(₹ in lakh)
Districts 2021-22 2022-23 2023-24 2024-25 2025-26 Total
Aizawl 629.50 647.75 689.29 727.59 708.44 3402.58
Lunglei 1096.16 1127.93 845.75 892.74 869.25 4831.84
Kolasib 633.19 651.54 696.87 735.58 716.22 3433.40
Champhai 580.40 597.22 637.16 672.56 654.86 3142.19
Mamit 818.90 842.64 892.97 942.58 917.78 4414.87
Serchhip 537.12 552.69 589.30 622.04 605.67 2906.81
Saitual 483.92 497.94 527.62 556.94 542.28 2608.70
Khawzawl 360.43 370.88 393.14 414.98 404.06 1943.50
Hnahthial 306.74 315.63 333.72 352.26 342.99 1651.33
Siaha 511.13 525.95 558.99 590.04 574.51 2760.63
Lawngtlai 942.51 969.83 1035.19 1092.70 1063.94 5104.15
Total 6900.00 7100.00 7200.00 7600.00 7400.00 36200.00
~ 310 ~
__________________________________________________________________________________
9.37 In the 2nd stage of the 2nd level of horizontal devolution, the Commission
distributes the tax devolution between village councils within a district. We
have used two criteria, representing the needs of the village (i.e., population),
along with equity criteria (i.e., development distance), for the horizontal
distribution of tax devolution across the village councils in a district.
Population in this context is the population according to the data in Mission
Antyodaya, 2020, slightly diverging from our terms of reference since it has
been observed that several village councils have been created either by the
State Government or the concerned autonomous district councils subsequent
to the publication of the Census, 2011, thus making it difficult to assess the
population of the parent village and the new village. The population of a village
represents the need to undertake expenditures for providing basic public
services to its residents. It is considered a simple and transparent criterion
that has a significant equalising impact. We have assigned a weight of 80% to
population in the 2nd stage of 2nd level of horizontal devolution. We have
consciously dropped the area criterion at this stage on account of the
unavailability of official statistics pertaining to the area coverage of the more
than 800 village councils in Mizoram.
9.38 The other criterion in the 2nd stage of the 2nd level of horizontal devolution is
the “development distance” constructed from the ranking of gram panchayats
across multiple parameters according to the Mission Antyodaya survey of
2020. Survey data relating to the availability or otherwise of basic
infrastructures under 29 subjects mentioned in the 11th Schedule of the
Constitution are used for ranking gram panchayats/villages. Marks are given
to answers to each question which are aggregated to arrive at an overall score
for each gram panchayat/village out of a total score of 100. The basic
parameters/development indicators for ranking of gram panchayats/villages
in Mission Antyodaya survey, 2020 includes indicators pertaining to:
i) agriculture
ii) land improvement
iii) animal husbandry
iv) fisheries
v) rural housing
vi) drinking water
vii) roads
viii) rural electrification
ix) non-conventional energy
x) maintenance of community assets
xi) fuel and fodder
xii) libraries
xiii) cultural activities
xiv) financial and communication infrastructures
xv) public distribution system
xvi) education
xvii) vocational education
~ 311 ~
__________________________________________________________________________________
xviii) markets and fairs

xix) health and sanitation
xx) women and child development
xxi) social welfare
xxii) family welfare
xxiii) welfare of the weaker sections
xxiv) poverty alleviation programme
xxv) khadi, village and cottage industries
xxvi) social forestry
xxvii) minor forest produce
xxviii) small scale industries
xxix) adult and non-formal education
9.39 The development distance for a village in a district is obtained in two steps. In
the 1st step, the distance of a village from that of the highest score in a district
is calculated by subtracting the score of a village from the highest score in a
district. In the 2nd step, the development distance will be the same as the
distance of the village from that of the highest score as obtained in the 1st step
except for the villages scoring the highest and the second highest. Since the
development distance will be zero for the village having the highest score, the
development distance obtained for the village scoring the third highest is taken
as the development distance for the village having the highest and the second
highest score. The procedure for calculation of development distance from the
scores of villages in Mission Antyodaya survey, 2020 is illustrated from the
following example in an imaginary “A” district having 7 villages.
Table 9.14 Determination of development distance
Sl. Name of villages Scores from Distance of

Development
No. in “A” district Mission village from the
distance
Antyodaya, 2020 highest score
1 2 3 4 5
1. Village 1 56 80-56 = 24 24
2. Village 2 65 80-65 = 15 15
80
3. Village 3 80-80 = 0 10
(1st)
75
4. Village 4 80-75 = 5 10
(2nd)
5. Village 5 48 80-48 = 32 32
70 10
6. Village 6 80-70 = 10
(3rd)
7. Village 7 66 80-66 = 14 14
9.40 In the above table, the development distance so obtained for the third-rank
village “Village 6,” i.e., 10, is taken as the development distance for the 1st rank
village “Village 3” and the 2nd rank village “Village 4." We have assigned a
weight of 20% for the development distance criterion.
~ 312 ~
__________________________________________________________________________________
9.41 The inter se shares of villages within a district as per the 2nd stage of 2nd level
of horizontal devolution pertaining to horizontal distribution of tax devolutions
are presented district-wise in Annexures 9.3 to 9.13.
9.42 In the case of village councils created/established after the conduct of Mission
Antyodaya Survey, 2020, neither the official data pertaining to their
population nor their ranking scores is available. The Commission, therefore,
does not undertake separate calculations of the respective shares of the parent
village council and the new village council(s). The State government in Local
Administration Department may divide the share of the new village councils
with reference to their parent village councils as per the ratio of their existing
population from the amount arrived at after applying the combined inter-se
share. Similarly, in the case of new village councils under the Sixth Schedule
areas, the concerned autonomous district council may divide the share of the
new village councils with reference to their parent village councils as per the
ratio of their existing population from the amount arrived at after applying the
combined inter-se share. The calculation of the respective shares of the new
village councils vis-à-vis their parent village councils shall be done as per the
aforesaid procedure for the purpose of distribution of tax devolution as well as
rural local body grants.
9.43 Following the inter se share of villages arrived at in the 2 nd stage of the 2nd
level of horizontal devolutions, the amount of tax devolution as recommended
by the 2nd State Finance Commission for all the rural local bodies during the
award period of 2021-22 up to 2025-26 are presented in the Annexures 9.14
to 9.24.
9.44 It may be reiterated that the 15th Finance Commission, in its report in
paragraph 7.67, recommended the distribution of rural local body grants
between the different entities on the basis of population and area in the ratio
of 90:10 or as per the accepted recommendation of the latest State Finance
Commission. On the basis of the above recommendation, the Commission has
already determined the share of village councils district-wise upon the rural
local body grants duly recommended by the 15th Finance Commission at table
9.10. The inter se shares of village councils upon the rural local body grants,
according to the 2nd stage of the 2nd level of horizontal devolutions, have been
determined for each village council and presented at Annexures 9.25 to 9.35.
9.45 Village councils shall utilise their receipts of tax devolution primarily for
creation of capital assets, except for the remuneration of the members of
Village Councils as also the cost of office expenses, preferably from the plan
prepared by the Gram Sabha under the latest Gram Panchayat Development
Plan (GPDP).
~ 313 ~
__________________________________________________________________________________
Horizontal devolution : 3rd level (Stage 1 and 2)
9.46 The 3rd level of horizontal devolution pertains to distribution of the tax
devolution between the two urban local bodies (viz., Aizawl Municipal
Corporation and Lunglei Municipal Council) in two stages i.e., distribution of
tax devolution between the urban local bodies in the 1st stage and distribution
between Local Councils within an urban local body in the 2 nd stage of
horizontal devolution on the basis of the principles of need and equity.
9.47 In the 1st stage of the 3rd level of horizontal devolution, we have used three
criteria, representing the needs of the urban local bodies (i.e., population and
area) along with equity criteria (i.e., households living below poverty line) for
horizontal distribution of tax devolution across the urban local bodies.
Population in this context is the population of the notified urban area
according to the Census, 2011 since the terms of reference specifically require
us to use the figures of Census, 2011 whenever population is used as a
criterion for devolution of taxes and grants-in-aid. The population basically
represents the needs of the municipalities to undertake expenditure for
providing basic public services to its residents. It is an easy-to-understand
indicator with a big equalising effect. We have assigned a weight of 60% to
population in the 1st stage of 3rd level horizontal devolution.
9.48 Area is another criterion in the horizontal devolution formula on the ground
of need – the larger the area, greater is the expenditure requirement for
providing comparable services. The area in this context is the municipal area
that are served by the urban local bodies. The figures for geographical area
are as per the data furnished by the Mizoram Remote Sensing Application
Centre (MIRSAC) under Planning & Programme Implementation Department.
We have assigned a weightage of 30% to the area criterion.
9.49 The third criteria for horizontal distribution of tax devolution is the lone equity
criteria, i.e., households living below poverty line as per the BPL Baseline
Survey undertaken by the Directorate of Economics and Statistics under
Planning & Programme Implementation Department during the year 2015-16
(which is the latest figure), available at the website
https://des.mizoram.gov.in. We have assigned a weight of 10% to the
households living below poverty line criteria.
9.50 The 1st stage of the 3rd level horizontal devolution between the urban local
bodies is presented at the table below.
~ 314 ~
__________________________________________________________________________________
Table 9.15 1st stage of 3rd level horizontal devolution between urban local
bodies
Aizawl Lunglei
Sl.
Criteria Municipal Municipal Total
No.
Corporation Council
Population (Census 2011) 2,93,416 57,011 350427
1 Distribution of population 0.837 0.163 1.00
60% weightage to population 50.24 9.76 60.00
Area (in square kilometres) 120.40 55.27 175.67
2 Distribution of area 0.685 0.315 1.000
30% weightage to area 20.56 9.44 30.00

Households living below poverty line
3836.00 3100.00 6936.00
(BPL)
3 Distribution of households living
0.55 0.45 1.00
below poverty line
10% weightage to BPL households 5.53 4.47 10.00
76.33 23.67 100.00
9.51 Following the inter se shares arrived at for urban local bodies, the amount of
tax devolution as recommended by the 2nd State Finance Commission during
its award period is presented in the table 9.15 below. As in the case of
horizontal devolution between rural local bodies, devolutions for Lunglei
municipality are determined from the year 2023–24 onwards as elections to
the Lunglei municipal council were held and the municipality starts to become
functional henceforth.
Table 9.16 Tax devolution to urban local bodies in the 1st stage of 3rd level of
horizontal devolution
(₹ in lakh)
Name of ULBs 2021-22 2022-23 2023-24 2024-25 2025-26 Total
Aizawl Municipal
929.77 1164.67 1765.23 1944.49 2270.84 8075.00
Corporation
Lunglei Municipal
0.00 0.00 547.39 602.97 704.17 1854.53
Council
Total 929.77 1164.67 2312.62 2547.46 2975.02 9929.54
9.52 It may be reiterated that the 15th Finance Commission, in its report in
paragraph 7.132, recommended the intra-city distribution of urban local body
grants on the basis of recommendations of the latest State Finance
Commission. In case the SFC recommendation is not available for distribution,
allocations should be based on population and area in the ratio of 90:10. On
the strength of the above recommendation, the Commission determines the
share of each municipality upon the urban local body grants duly
~ 315 ~
__________________________________________________________________________________
recommended by the 15th Finance Commission as per the criteria in table

9.14.
Table 9.17 Share of municipalities upon the urban local body grants of
(₹ in lakh)
Name of ULBs 2021-22 2022-23 2023-24 2024-25 2025-26 Total
Aizawl Municipal
3400.00 3500.00 2824.23 2976.89 3053.22 15754.33
Corporation
Lunglei Municipal
0 0 875.77 923.11 946.78 2745.67
Council
Total 3400.00 3500.00 3700.00 3900.00 4000.00 18500.00
9.53 The Mizoram Municipalities Act, 2007 as amended provides for a third tier of
municipal administration in the context of Mizoram viz., the Local Councils in
every locality within a Ward, under sub-section (3) of section 23 of the Act, to
look after matters of local and internal nature according to the Mizo traditions,
customs and practices. The Local Councils essentially are at the interface of
citizen-municipal administration and thus, serve as an important agent of the
Municipality in the delivery of core civic services. The Commission deems it
appropriate to further devolve a certain percentage of the tax devolution
devolved upon the urban local bodies to their respective Local Councils.
Thus, we recommend that the Municipalities devolve 20% of the tax
devolution from the State Government to the local councils following the
inter se shares arrived at for the respective local councils in the 2nd stage
of the 3rd level of horizontal devolution.
9.54 In the 2nd stage of the 3rd level of horizontal devolution, the Commission, thus,
distributes the tax devolution between Local Councils within a municipality.
We have used two criteria, representing the needs of the village (i.e.,
population), along with equity criteria (i.e., households living below poverty
line), for the horizontal distribution of tax devolution across the Local Councils
within a municipality. Population in this context is the population of the
respective localities according to Census, 2011. The population of a locality
basically represents the need to undertake expenditures for providing basic
public services to its residents. We have assigned a weight of 80% to
population in the 2nd stage of 3rd level of horizontal devolution. As in the case
of horizontal devolution between village councils, we have consciously dropped
the area criterion at this stage on account of the unavailability of official
statistics pertaining to the area coverage of the localities even within the urban
areas of Mizoram.
9.55 The other criterion in the 2nd stage of the 3rd level of horizontal devolution is
the “households living below poverty line” of the respective localities as per the
BPL Baseline Survey undertaken by the Directorate of Economics and
~ 316 ~
__________________________________________________________________________________
Statistics during the year 2015-16. We have assigned a weight of 20% for this
criterion.
9.56 The inter se shares of local councils as per the 2nd stage of 3rd level horizontal
devolution within a municipality is determined on the basis of the above
criteria and presented in the following tables.
Table 9.18 2nd stage of 3rd level horizontal devolution across Local Councils
within Aizawl municipality
Distribution of population
Population of the locality
Households living below
Inter se share as per the

households living below

Name of Local Council
80% weightage to
20% weightage to
within the Ward
Name of Wards
Distribution of
(Census 2011)
criteria (6+9)
poverty line
poverty line
poverty line
population
Sl. No.
1 2 3 4 5 6 7 8 9 10
1 Selesih 882 0.0030 0.24 3 0.0008 0.02 0.26
2 Durtlang North 1756 0.0060 0.48 2 0.0005 0.01 0.49
3 Durtlang 4019 0.0137 1.10 8 0.0021 0.04 1.14
1 4 Durtlang Leitan
4598 0.0157 1.25 223 0.0581 1.16 2.42
5 Leitan Ramthar
6 Zuangtui 3912 0.0133 1.07 12 0.0031 0.06 1.13
7 Muanna Veng 2023 0.0069 0.62 0 0.0000 0.00 0.62
8 Chaltlang
9 Chaltlang Lily Veng 12632 0.0431 3.44 102 0.0266 0.53 3.98
Phunchawng
2 10
(from Ward no. 11)
11 Bawngkawn 8407 0.0287 2.29 32 0.0083 0.17 2.46
12 Bawngkawn South 2237 0.0076 0.61 8 0.0021 0.04 0.65
13 Ramhlun North 6428 0.0219 1.75 136 0.0355 0.71 2.46
14 Ramhlun Venglai 3073 0.0105 0.84 47 0.0123 0.25 1.08
3 15 Ramhlun Vengthar 3006 0.0102 0.82 6 0.0016 0.03 0.85

Ramhlun Sport
16 1013 0.0035 0.28 0 0.0000 0.00 0.28
Complex
17 Laipuitlang 1979 0.0067 0.54 5 0.0013 0.03 0.57
18 Ramhlun South 6424 0.0219 1.75 8 0.0021 0.04 1.79
19 Ramthar North 1928 0.0066 0.53 5 0.0013 0.03 0.55
4
20 Ramthar Veng 5258 0.0179 1.43 0 0.0000 0.00 1.43
21 Aizawl Venglai 2505 0.0085 0.68 0 0.0000 0.00 0.68
22 Electric Veng 6165 0.0210 1.68 3 0.0008 0.02 1.70
5
23 Chanmari 5626 0.0192 1.53 69 0.0180 0.36 1.89
~ 317 ~
__________________________________________________________________________________
24 Zarkawt 2620 0.0089 0.71 0 0.0000 0.00 0.71

25 Chanmari West 6302 0.0215 1.72 3 0.0008 0.02 1.73
6 26 Edenthar 2845 0.0097 0.78 88 0.0229 0.46 1.23
27 Hunthar 2680 0.0091 0.73 10 0.0026 0.05 0.78
28 Zemabawk
9983 0.0340 2.72 94 0.0245 0.49 3.21
29 Zemabawk South
7 30 Zemabawk North 3119 0.0106 0.85 36 0.0094 0.19 1.04
31 Falkland 1342 0.0046 0.37 3 0.0008 0.02 0.38
32 Thuampui 4021 0.0137 1.10 242 0.0631 1.26 2.36
33 Armed Veng 4083 0.0139 1.11 1 0.0003 0.01 1.12
8 34 Armed Veng South 4847 0.0165 1.32 12 0.0031 0.06 1.38
35 Chite 497 0.0017 0.14 9 0.0023 0.05 0.18
36 Dawrpui 3660 0.0125 1.00 7 0.0018 0.04 1.03
37 Saron Veng 3030 0.0103 0.83 7 0.0018 0.04 0.86
9
38 Chhinga Veng 7629 0.0260 2.08 6 0.0016 0.03 2.11
39 Tuithiang 2133 0.0073 0.58 116 0.0302 0.60 1.19
40 Chawnpui 3965 0.0135 1.08 6 0.0016 0.03 1.11
41 Zotlang 3018 0.0103 0.82 3 0.0008 0.02 0.84
10
42 Zonuam 2647 0.0090 0.72 2 0.0005 0.01 0.73
43 Ainawn Veng 1913 0.0065 0.52 52 0.0136 0.27 0.79
44 Luangmual 5466 0.0186 1.49 3 0.0008 0.02 1.51
45 Chawlhhmun 3092 0.0105 0.84 196 0.0511 1.02 1.86
46 Tanhril
11 2930 0.0100 0.80 182 0.0474 0.95 1.75
47 Tuivamit
48 Sakawrtuichhun 1425 0.0049 0.39 21 0.0055 0.11 0.50
49 Rangvamual 1342 0.0046 0.37 23 0.0060 0.12 0.49
50 Tuikual North 4702 0.0160 1.28 5 0.0013 0.03 1.31
12 51 Tuikual South 5768 0.0197 1.57 168 0.0438 0.88 2.45
52 Dinthar 6685 0.0228 1.82 215 0.0560 1.12 2.94
53 Dawrpui Vengthar 4095 0.0140 1.12 4 0.0010 0.02 1.14
13 54 Vaivakawn 3996 0.0136 1.09 110 0.0287 0.57 1.66
55 Kanan 3572 0.0122 0.97 1 0.0003 0.01 0.98
56 Khatla
7248 0.0247 1.98 43 0.0112 0.22 2.20
57 Khatla East
14
58 Khatla South 3727 0.0127 1.02 20 0.0052 0.10 1.12
59 Mission Vengthlang 4876 0.0166 1.33 44 0.0115 0.23 1.56
60 Bungkawn 4955 0.0169 1.35 54 0.0141 0.28 1.63
15 61 Bungkawn Vengthar 2346 0.0080 0.64 38 0.0099 0.20 0.84
62 Maubawk 4120 0.0140 1.12 223 0.0581 1.16 2.29
~ 318 ~
__________________________________________________________________________________
63 Lawipu 760 0.0026 0.21 49 0.0128 0.26 0.46

64 Nursery 2734 0.0093 0.75 135 0.0352 0.70 1.45
65 Bethlehem 4846 0.0165 1.32 102 0.0266 0.53 1.85
Bethlehem
16 66 7467 0.0254 2.04 252 0.0657 1.31 3.35
Vengthlang
67 College Veng 2904 0.0099 0.79 62 0.0162 0.32 1.12
68 Venghlui 4744 0.0162 1.29 5 0.0013 0.03 1.32
69 Republic Veng 4159 0.0142 1.13 13 0.0034 0.07 1.20
17
70 Upper Republic 2644 0.0090 0.72 6 0.0016 0.03 0.75
71 Republic Vengthlang 2412 0.0082 0.66 3 0.0008 0.02 0.67
72 Mission Veng
73 Tuikhuahtlang 8596 0.0293 2.34 2 0.0005 0.01 2.35
74 Model Veng
75 Salem Veng 4134 0.0141 1.13 52 0.0136 0.27 1.40
18
76 Dam Veng 1345 0.0046 0.37 0 0.0000 0.00 0.37
77 Venghnuai 2092 0.0071 0.57 1 0.0003 0.01 0.58
78 Thakthing 1297 0.0044 0.35 0 0.0000 0.00 0.35
79 ITI Veng 4440 0.0151 1.21 4 0.0010 0.02 1.23
80 Kulikawn 4978 0.0170 1.36 160 0.0417 0.83 2.19
81 Tlangnuam
4008 0.0137 1.09 195 0.0508 1.02 2.11
82 Tlangnuam Vengthar
19
83 Saikhamakawn 1463 0.0050 0.40 29 0.0076 0.15 0.55
84 Melthum 1110 0.0038 0.30 1 0.0003 0.01 0.31
85 Hlimen 2733 0.0093 0.75 49 0.0128 0.26 1.00
TOTAL 293416 1.0000 80.00 3836 1.0000 20.00 100.00
~ 319 ~
__________________________________________________________________________________
Table 9.19 2nd stage of 3rd level horizontal devolution across Local Councils
within Lunglei municipality
Distribution of population
Population of the locality
Inter se share as per the

Households living below

Name of Local Councils
80% weightage to
20% weightage to
within the ward
Name of Wards
Distribution of
(Census 2011)
criteria (6+9)
poverty line
poverty line
poverty line
population
Sl. No.
1 2 3 4 5 6 7 8 9 10
1 Pukpui 2958 0.0519 4.15 210 0.0677 1.35 5.51
1
2 Zotlang 2891 0.0507 4.06 160 0.0516 1.03 5.09
3 Serkawn 2762 0.0484 3.88 71 0.0229 0.46 4.33
2
4 Zohnuai 1520 0.0267 2.13 86 0.0277 0.55 2.69
5 Bazar Veng 4622 0.0811 6.49 211 0.0681 1.36 7.85
3
6 College Veng 1228 0.0215 1.72 124 0.0400 0.80 2.52
7 Venglai 3237 0.0568 4.54 103 0.0332 0.66 5.21
4
8 Venghlun 1988 0.0349 2.79 214 0.0690 1.38 4.17
9 Rahsi Veng 3759 0.0659 5.27 124 0.0400 0.80 6.07
5 10 Sazaikawn 551 0.0097 0.77 38 0.0123 0.25 1.02
11 Hauruang 1159 0.0203 1.63 72 0.0232 0.46 2.09
6 12 Electric Veng 4505 0.0790 6.32 200 0.0645 1.29 7.61
7 13 Chanmari 5391 0.0946 7.56 162 0.0523 1.05 8.61
14 Ramthar 3604 0.0632 5.06 206 0.0665 1.33 6.39
8
15 Farm Veng 1837 0.0322 2.58 96 0.0310 0.62 3.20
16 Lunglawn 4108 0.0721 5.76 77 0.0248 0.50 6.26
9
17 Salem Veng 1669 0.0293 2.34 65 0.0210 0.42 2.76
18 Sethlun 880 0.0154 1.23 61 0.0197 0.39 1.63
19 Luangmual 1865 0.0327 2.62 70 0.0226 0.45 3.07
10
20 Theiriat 1988 0.0349 2.79 175 0.0565 1.13 3.92
21 Hrangchalkawn 723 0.0127 1.01 42 0.0135 0.27 1.29
22 Lungpuizawl 600 0.0105 0.84 84 0.0271 0.54 1.38
11 23 Zobawk 'S'
3166 0.0555 4.44 449 0.1448 2.90 7.34
24 Zobawk 'N'
TOTAL 57011 1.0000 80.00 3100 1.0000 20.00 100.00
9.57 The population of local councils established after the publication of the 2011
Census is not available. The Commission, therefore, does not undertake
separate calculations of the respective shares of the parent local council and
the new local council(s). The concerned municipalities may divide the share of
the new local councils with reference to their parent local councils as per the
~ 320 ~
__________________________________________________________________________________
ratio of their existing population from the amount arrived at after applying the
combined inter-local share. For instance, LMC may divide the share of Zobawk
"S" and Zobawk "N" localities as per the ratio of their existing population from
the amount arrived at after applying the combined share of 7.34%.
9.58 The inter se shares of local councils upon 20% of the State tax devolution have
been determined for each local council according to the criteria in the 2nd stage
of the 3rd level of horizontal devolution and presented municipality-wise at
Annexures 9.36 (Aizawl municipality) and 9.37 (Lunglei municipality).
9.59 The municipalities and the local councils shall utilise the receipts from tax
devolution primarily for creation of capital assets within the functions
delegated to the municipalities under the 12th Schedule to the Constitution of
India.
Horizontal devolution : 4th level
9.60 The 4th level of horizontal devolution revolves around distribution of the tax
devolution between the three autonomous district councils on the basis of the
principles of need, performance and equity. We have used four criteria, two of
them representing the needs of the autonomous district councils (i.e.,
population and area), performance criteria (i.e., revenue efforts) and equity
criteria (i.e., deprivation index) for horizontal distribution of tax devolution
across the district councils.
9.61 Since the terms of reference specifically state that we must use the Census,
2011 figures whenever population is used as a criterion for devolution of taxes
and grants-in-aid, population in this context refers to the population as
reported in that census. A district council's population is an indicator of the
expenditures associated with delivering essential public services to its citizens.
It is an easy-to-understand indicator with a big equalising effect. We have
assigned a weight of 40% to population in the 4th level horizontal devolution.
9.62 The size of the area affects the amount of expenditure needed to provide
equivalent services, which is another factor in the horizontal devolution
scheme based on need. The area in this context is the one that the
autonomous district councils cover. The estimates for geographic area are
based on information provided by the Mizoram Remote Sensing Application
Centre (MIRSAC) under Planning & Programme Implementation Department.
The area criterion has a 30% weight, which we have assigned.
9.63 The third criteria for horizontal distribution of tax devolution is the lone
performance criteria, i.e., revenue efforts measured in terms of the average of
per capita own revenues generated by the district councils for 6 years from
2015-16 to 2020-21 in terms of ₹ per person. We have assigned a weightage
of 15% to the revenue effort criterion. This criterion basically aims at
~ 321 ~
__________________________________________________________________________________
rewarding the district councils on the basis of their own tax and own non-tax
revenue generation efforts, i.e., greater the own source revenue generation,
greater is the devolution of State taxes.
9.64 The fourth criteria in horizontal distribution of tax devolution is the equity
criteria, i.e., the deprivation index constructed from the gaps in 20 basic
facilities across the three district councils as per the report of the Mission
Antyodaya survey, 2020. We have assigned a weight of 15% to the deprivation
index.
9.65 The procedure for calculation of the deprivation index is the same as
elaborated in paragraphs 9.29 and 9.30 under the 2nd level of horizontal
devolution and need not be repeated here. The detailed calculation of
deprivation indices across the three district councils from the gap report in 20
basic facilities of the Mission Antyodaya, 2020 can be seen at Annexure 9.38.
9.66 The inter se shares as per the 4th level of horizontal devolution between the
autonomous district councils are, thus, determined as shown in the table
below.
Table 9.20 4th level of horizontal devolution across autonomous district

councils
Sl.
Criteria CADC LADC MADC Total
No.
Population (Census 2011) 45307 72587 56574 174468
1 Distribution of population 0.260 0.416 0.324 1.00
40% weightage to population 10.39 16.64 12.97 40.00
Area (in square kilometres) 677.00 1781.64 1519.21 3977.85
2 Distribution of area 0.170 0.448 0.382 1.00
30% weightage to area 5.11 13.44 11.46 30.00
Revenue efforts (i.e., average of
per capita own revenues for 6
109.08 221.94 141.07 472.08
years from 2015-16 to 2020-
3 21 in ₹ per person)
Distribution of revenue efforts 0.231 0.470 0.299 1.00
15% weightage to revenue
3.47 7.05 4.48 15.00
efforts
Deprivation index (i.e. gaps in
20 basic facilities across
villages within the district
0.73 0.58 0.49 1.80
councils based on Mission
Antyodaya Survey report of
4
2020)
Distribution of deprivation
0.405 0.322 0.273 1.00
index
6.08 4.83 4.10 15.00
index
Inter se share in % as per
the horizontal distribution 25.04 41.96 33.01 100.00
criteria
~ 322 ~
__________________________________________________________________________________
9.67 Following the inter se shares arrived at for autonomous district councils in
table 9.19 above, the amount of tax devolution as recommended by the 2 nd
State Finance Commission during its award period is presented in table 9.20
below.
Table 9.21 Tax devolution to autonomous district councils in the 4th level of
(₹ in lakh)
Sl. Name of
2021-22 2022-23 2023-24 2024-25 2025-26
No. ADC
1 CADC 7,591.65 8,640.82 9,551.21 10,620.78 10,527.32
2 LADC 12,723.15 14,481.50 16,007.25 17,799.78 17,643.15
3 MADC 10,008.27 11,391.42 12,591.61 14,001.64 13,878.44
Total 30,323.08 34,513.74 38,150.06 42,422.20 42,048.92
Grants-in-aid
9.68 The Commission is mandated as per the terms of reference to make

recommendations governing the principles for grant-in-aid to the rural local
bodies, urban local bodies and the autonomous district councils from the
Consolidated Fund of Mizoram. Grants-in-aid are essentially sums of money
(grants) given to the local bodies by the State Government over and above their
share of tax devolution for the fulfilment of specific works, plans and policies.
9.69 In the 1st level of horizontal devolution amongst the local bodies, the
Commission has already recommended that the revenue deficit that still exists
with the autonomous district councils after tax devolution from the divisible
pool be filled up from post-devolution revenue deficit grants for all three ADCs.
The post-devolution revenue deficit for a district council is calculated as the
difference between the assessed revenue expenditure requirement minus the
own revenue receipts and the tax devolution from the state government, i.e.,
Post devolution = assessed revenue expenditure requirement – own

revenue deficit revenue receipts – State tax devolution
9.70 In order to empower the district councils and enhance their level of
administration within the powers delegated to them under the Sixth
Schedule of the Constitution and the functions entrusted to them by the
State Government from time to time, the Commission deems it
appropriate to recommend post-devolution revenue deficit grants to the
three autonomous district councils within its award period of 5 years as
follows without any conditions attached to its release:
~ 323 ~
__________________________________________________________________________________
Table 9.22 Post-devolution revenue deficit grants to autonomous district

councils
(₹ in lakh)
Post-
Sl. devolution
2021-22 2022-23 2023-24 2024-25 2025-26
No. revenue deficit
grant
1 CADC 4,172.88 4,217.64 4,484.89 4,409.30 5,531.91
2 LADC 7,431.37 7,302.51 6,812.75 6,559.43 8,108.42
3 MADC 7,467.96 7,253.39 7,348.75 7,318.19 8,916.87
Total 19,072.20 18,773.54 18,646.39 18,286.92 22,557.20
9.71 The Commission recognises the need to incentivise both the rural local bodies
and their urban counterparts to raise their own source revenues and ensure
better delivery of basic public services to their residents. The municipalities
and the village councils are in fact at the forefront of the citizen-administration
interface. The Commission, thus, recommends performance grants to the
rural local bodies and urban local bodies from the financial year 2023-24
up to the end of the award period of 2025-26 subject to the fulfilment of
certain performance conditions on the part of the village councils and
municipalities.
9.72 The quantum of performance grants for the rural local bodies and urban local
bodies at the aggregate level from the year 2023-24 up to the year 2025-26 are
determined as shown in table 9.23 below:
Table 9.23 Performance grants to rural and urban local bodies

(₹ in lakh)
Sl. Name of local
2021-22 2022-23 2023-24 2024-25 2025-26
No. body
1 Village Councils 0 0 750.00 800.00 850.00
2 Municipalities 0 0 500.00 550.00 600.00
Total 0 0 1250.00 1350.00 1450.00
9.73 In order to avail the above performance grants, the Commission recommends
the fulfilment of the following performance conditions by the rural local bodies,
viz.
i) Receipts from collection of own non-tax revenues in the previous
financial year (including collection of user charges from assets created
under Central or State Government schemes) to be not less than 15
times the population of the village, with population figures as reported
in the Mission Antyodaya Survey, 2020, to be applied. For instance,
the population of Bulfekzawl village in Champhai district as per the
~ 324 ~
__________________________________________________________________________________
Mission Antyodaya Survey, 2020 stands at 429. To avail performance

grants in the year 2023-24, the village has to collect non-tax revenues
not less than 429 x 15 = ₹6,435/- in the previous financial year of
2022-23.
ii) Increase in collection of own non-tax revenues from the village at least
by 6% annually. This condition will be applicable from the year 2024-
25 onwards. For instance, in order to avail performance grants in the
year 2024-25, Bulfekzawl village in Champhai district has to increase
their collection of own non-tax revenues by 6% from the previous year
of 2023-24.
iii) Collection of property tax from at least 90% of the taxable units in a
village, as and when the rules are framed by the State Government.
iv) Maintenance and submission of an Asset Register as prescribed by the

State Government in Local Administration Department before the end
of every financial year. This condition will be applicable for availing
performance grants from the year 2024-25.
v) Maintenance of accounts as prescribed by the State government and

submission of updated accounts to the District Local Administration
Officer/Local Administration Officer. This condition will be applicable
for availing performance grants from the year 2025-26.
9.74 The Commission further recommends that performance grants be given only
to Village Councils fulfilling the aforesaid conditions, duly certified by the
concerned District Local Administration Officer/Local Administration Officer.
9.75 The amount of performance grants shall be first distributed district-wise as

per the criteria in the 2nd level horizontal distribution of tax devolution. The
inter se share of Village Councils in a district be worked out separately
amongst the villages fulfilling the criteria for performance grants ONLY on the
basis of (a) 80% population and, (b) 20% development distance from the score
obtained in Mission Antyodaya, 2020. The detailed procedure for disbursal of
the performance grant to village councils based on the above conditions be
designed by the State Government in Local Administration Department in
consultation with the Department of District Council & Minority Affairs.
9.76 Performance grants to rural local bodies shall be strictly utilised for creation
of capital assets only, preferably from the plan prepared by the Gram Sabha
under the latest Gram Panchayat Development Plan (GPDP).
9.77 With regard to the performance grants for urban local bodies, the Commission
believes that similar conditions for availing the grants between the two
municipalities may not be suitable since the municipality at Lunglei is only in
~ 325 ~
__________________________________________________________________________________
its infancy while the municipality at Aizawl has been in existence for more
than a decade with the ULB reaching the level of a municipal corporation. The
Commission, therefore, deems it appropriate to recommend different
performance conditions to be fulfilled by the municipalities at Aizawl and
Lunglei to avail performance grants. The conditions for availing performance
grants for Aizawl Municipal Corporation are as follows:
i) Capital expenditure not less than 40% of the total expenditure in the
previous financial year.
ii) Collection of property tax from at least 90% of the surveyed taxable
units in a municipal area in the previous financial year.
iii) Ensure segregation of wastes at source generated by waste generators

within the municipality into three separate streams, viz., bio-
degradable, non-biodegradable, and domestic hazardous wastes, and
hand them over to the local level waste collectors as per Rule 4 of the
Solid Waste Management Rules, 2016.
iv) Maintenance of accounts as per the National Municipal Accounts

Manual.
9.78 The conditions for availing performance grants in respect of the Lunglei
Municipal Council are as follows:
i) Frame bye-laws on solid waste management as per rule 15(e) of the

Solid Waste Management Rules, 2016 read with section 371 of the
Mizoram Municipalities Act, 2007 as amended not later than the 29th
February, 2024.
ii) Resolution of the Board of Councillors determining to levy the property

tax as per section 210 of the Mizoram Municipalities Act, 2007 as
amended not later than the 29th February, 2024.
iii) Collection of property tax from at least 90% of the surveyed taxable
units in a municipal area in the previous financial year. This condition
shall be applicable for availing performance grants from the year 2025-
26
iv) Ensure segregation of wastes at source generated by waste generators

within the municipality into three separate streams, viz., bio-
degradable, non-biodegradable, and domestic hazardous wastes, and
hand them over to the local level waste collectors as per Rule 4 of the
Solid Waste Management Rules, 2016. This condition shall be
applicable for availing performance grants from the year 2024-25.
~ 326 ~
__________________________________________________________________________________
9.79 The Commission also recommends that performance grants to be given only
to urban local bodies fulfilling the aforesaid conditions, duly certified by the
Director, Urban Development & Poverty Alleviation. The amount shall be
distributed as per the criteria in 3rd level horizontal distribution of tax
devolution between the ULBs fulfilling the performance conditions ONLY. The
detailed procedure for disbursal of the performance grant to municipalities
based on the above conditions be designed by the State Government in Urban
Development & Poverty Alleviation Department. In case some amount of the
performance grant remains after disbursement to the eligible municipality,
this undisbursed amount shall be distributed to the other municipality
fulfilling the performance conditions (since there are only two urban local
bodies in Mizoram for the time being).
9.80 Performance grants for urban local bodies shall be strictly utilised for creation
of capital assets within the functions delegated to the municipalities from the
Twelfth Schedule to the Constitution only.
9.81 The Commission also recognises the need to incentivise the autonomous
district councils to enhance their generation of own source revenues since they
are heavily dependent upon transfers from the State Government with almost
no regular inflows from the Central Government. Besides, the Commission
also understands the need of the district councils to augment their capital
expenditure within the functions delegated to them by the State Government
from time to time.
9.82 The quantum of performance grants for the autonomous district councils at
the aggregate level from the year 2023-24 up to the year 2025-26 are
determined as follows:
Table 9.24 Performance grants to autonomous district councils
(₹ in lakh)
Sl.
Grants-in-aid 2021-22 2022-23 2023-24 2024-25 2025-26
No.
Performance
1 0 0 1000 1250 1500
grants
9.83 With regard to the performance grants for district councils, the Commission
recommends fulfilment of the following performance conditions by the district
councils to avail the grants, viz.
i) To generate own revenue receipts, inclusive of own tax revenue and own
non-tax revenue, as projected by the Commission in the previous
financial year, i.e., to avail performance grants for the year 2023-24, a
district council must generate own revenue receipts as projected by the
Commission for the previous financial year of 2022-23 and so on. The
~ 327 ~
__________________________________________________________________________________
own revenue receipts projected to be generated by the respective district

councils for the award period are as follows:
Table 9.25 Projected own revenue receipts of autonomous district councils

(₹ in lakh)
Projections of own revenue
2021-22 2022-23 2023-24 2024-25 2025-26
receipts
Projected own tax revenues of
83.77 74.78 81.21 85.63 90.4
CADC
33.17 57.59 54.41 61.22 70.38
revenues of CADC
Projected own revenue receipts
116.94 132.37 135.62 146.85 160.78
of CADC
156.44 152.1 167.98 177.32 184.18
LADC
98.85 103.4 113.49 120.78 127.58
revenues of LADC
255.29 255.5 281.47 298.1 311.76
of LADC
107.98 123.36 132.59 136.97 141.86
MADC
85.07 97.83 124.75 154.21 198.13
revenues of MADC
193.05 221.19 257.34 291.18 339.99
of MADC
ii) Levy and collection of property tax from at least 90% of the taxable units
in the previous financial year. This condition shall become applicable
for district councils for the year 2025-26. In other words, to avail the
performance grant in the year 2025-26, a district council must levy and
collect property tax from at least 90% of the taxable units in the
previous financial year of 2024-25.
iii) To finalise the accounts of the district council within four months from
the close of the previous financial year and upload the financial
statement in the respective website of the district councils for the sake
of transparency. This condition shall become applicable for claiming
performance grants from the year 2024-25 onwards. For instance, to
avail performance grant for the year 2024-25, a district council must
finalise their accounts for the year 2023-24 not later than 31st July,
2024.
iv) To constitute the Study Group as recommended in paragraph 5.166 for

rationalising the expanding salary expenditures to avail performance
grant from the year 2024-25 not later than 31st March, 2024.
Subsequently, to avail the performance grant for the year 2025-26, a
district council must furnish the action taken report upon the
recommendation of the Study Group not later than the 31st March,
2025.
~ 328 ~
__________________________________________________________________________________
9.84 The Commission also recommends that performance grants to be given only
to district councils fulfilling the aforesaid conditions, duly certified by the
Secretary, District Council and Minority Affairs Department. The amount shall
be distributed amongst the district councils fulfilling all the above criteria
ONLY as per the criteria in 4th level horizontal distribution of tax devolution
between the district councils. In case some amount of the performance grant
remains after disbursement to the eligible district council(s), this undisbursed
amount shall be distributed on an equitable basis among the eligible district
councils. Performance grants shall be strictly utilised for creation of capital
assets only.
No separate assignment of taxes, duties, tolls and fees
9.85 The terms of reference include a provision that binds the Commission to make
recommendations pertaining to the principles for determination of the taxes,
duties, tolls and fees which may be assigned to, or appropriated by, the rural
local bodies, urban local bodies and the autonomous district councils. Article
243H of the Constitution empowers the State Legislature to make laws to
assign to a Panchayat such taxes, duties, tolls and fees levied and collected by
the State Government for such purposes and subject to such conditions and
limits. Similarly, article 243X also empowers the State Legislature to make
laws to assign to a Municipality such taxes, duties, tolls and fees levied and
collected by the State Government for such purposes and subject to such
conditions and limits. No such legislations have apparently been made till date
that assign taxes, duties, tolls and fees levied and collected by the State to the
rural local bodies or the municipalities for specific purposes. We consider the
import of the specific provision in the terms of reference relating to assignment
of taxes, duties, tolls and fees either to the rural local bodies or the urban local
bodies. Since we are recommending global sharing of the net proceeds of
all taxes, duties and fees levied and collected by the State government
with all the local bodies, separate assignment of taxes, duties, tolls and
fees with the rural local bodies, urban local bodies or the autonomous
district councils is not recommended by the Commission.
Separate heads for tax devolution and grants-in-aid in the budget
9.86 The transfers from the State government, as recommended by the 1st SFC, to
the local bodies are in the form of (a) devolutions from the State’s own tax
revenue and (b) grants-in-aid. The devolutions and grants-in-aid
recommended by the 1st SFC are mostly reflected in the budget documents as
“grants-in-aid general”. The grants-in-aid are further classified as grants-in-
aid general (salary) to meet salary expenditures and grants-in-aid general
(non-salary) to meet non-salary expenditures. We feel that the transfers to
local bodies should be duly reflected in the budget document in separate
heads, as recommended by the State Finance Commission, without clubbing
the tax devolutions and grants-in-aid into grants-in-aid general. This is
~ 329 ~
__________________________________________________________________________________
considered essential in order to assess the extent of implementation of the

recommendations of the State Finance Commission. Further, the classification
of grants-in-aid general into “salary” and “non-salary” components also
appears to be restrictive on the part of the budget controlling authority. The
classification of transfers to local bodies into “salary” and “non-salary”
components has not been recommended by the 1st SFC either. Thus, we
recommend that separate object heads for tax devolution to local bodies
viz., village councils, municipalities and autonomous district councils be
opened under suitable minor heads in addition to the existing object head
for grants-in-aid, with no further classification of grants-in-aid into salary
and non-salary components.
~ 330 ~
CHAPTER TEN
GENERAL OBSERVATIONS AND OTHER ISSUES IN THE

TERMS OF REFERENCE
Disaster management at village/local level
10.1 Paragraph 4(vi) of our terms of reference specifies that the Commission, while
making its recommendations, 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.
10.2 The Disaster Management Act, 2005 provides institutional mechanisms at the
National, State, District and Local levels for effective management of disasters.
The new institutional frameworks are expected to usher in a paradigm shift in
disaster management from relief centric approach to a proactive regime that
lays greater emphasis on preparedness, prevention and mitigation.
10.3 The District Disaster Management Authority (DDMA), chaired by the Deputy
Commissioner of the district, constituted by the State Government under
section 25 of the Act serves as the district planning, coordinating and
implementing body for disaster management and take all necessary measures
for the purposes of disaster management in accordance with the guidelines
laid down by the National Disaster Management Authority (NDMA) and State
Disaster Management Authority (SDMA). The DDMA has been given extensive
powers under section 34 of the Act to help, protect, or provide relief to the
affected community in the event of any threatening disaster situation or
disaster, including the authority to direct the release and use of resources
available with any Department of the Government and the local authority in
the district for disaster management as also demolition of structures which
may be hazardous to public. The DDMA also ensures that the guidelines for
prevention, mitigation, preparedness and response measures laid down by
NDMA and SDMA are followed by all Departments of the State Government,
at the District level and the Local Authorities in the District.
10.4 Section 48 provides for the establishment of State Disaster Response Fund
and State Disaster Mitigation Fund for meeting any threatening disaster
situation or disaster. There are, in fact, provisions for establishment of District
Disaster Response Fund as well as District Disaster Mitigation Fund in the
Act itself but the same have not been activated till now. The distribution of
funds from the SDRF to the DDMAs of the 11 districts is shown in the table
below.
~ 331 ~
__________________________________________________________________________________
Table 10.1 Distribution of State Disaster Response Fund to districts

(₹ in lakh)
Sl. Name of
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
No. District / DDMA
1 2 3 4 5 6 7 8 9
1 Aizawl 328.63 277.82 239.22 120.00 315.40 91.52 353.91
2 Lunglei 159.40 650.00 275.00 140.00 215.17 50.95
3 Siaha 15.00 42.00 175.00 44.50 145.00 78.17
4 Champhai 178.51 111.97 93.00 89.63 72.00 650.00 107.56
5 Kolasib 36.05 53.20 84.00 80.00 292.14 99.36
6 Serchhip 68.52 47.00 100.00 80.00 161.69 20.00 67.50
7 Mamit 45.27 109.51 80.00 90.00 87.90 50.00 64.00
8 Lawngtlai 33.00 452.49 784.28 129.55 89.00
9 Khawzawl 52.00 47.00
10 Saitual 65.00 50.00 46.00
11 Hnahthial 65.00 6.06 32.58
TOTAL 864.38 1743.99 1830.50 773.68 1471.30 867.58 1036.03
Source : DM&R Department
10.5 Since the State Disaster Mitigation Fund has been formalised with the
recommendation of the 15th Finance Commission, the distribution of the fund
across the DDMAs is also shown in the table below.
Table 10.2 Distribution of State Disaster Mitigation Fund to districts

(₹ in lakh)
2022-23
Sl. No Name of District / DDMA 2020-21 2021-22
(Projections)
1 2 3 4 5
1 Aizawl 0.00 62.40 64.80
2 Lunglei 0.00 46.80 48.60
3 Siaha 0.00 21.84 22.68
4 Champhai 0.00 21.84 22.68
5 Kolasib 0.00 21.84 22.68
6 Serchhip 0.00 21.84 22.68
7 Mamit 0.00 31.20 32.40
8 Lawngtlai 0.00 31.20 32.40
9 Khawzawl 0.00 15.60 16.20
10 Saitual 0.00 21.84 22.68
11 Hnahthial 0.00 15.60 16.20
TOTAL 0.00 312.00 324.00
Source : DM&R Department
~ 332 ~
Chapter 10 : General observations and other issues
__________________________________________________________________________________
10.6 The items and norms of assistance from the SDRF are specified by the
Government of India in Ministry of Home Affairs and expenses are largely
incurred by the DDMAs on the basis of the aforesaid norms. The trend in
utilization of SDRF as per the head-wise norms of assistance by the DDMAs
is also shown in table 10.3.
10.7 In the state of Mizoram, initiatives have been taken way back in the year 2003
to constitute Village Level Disaster Management Committee (VLDMC) for
better disaster response mechanism. The Deputy Commissioners have been
entrusted with the task of constituting such VLDMC within their respective
districts and the same have played significant roles in planning, coordinating
and implementing disaster management at the village level.
10.8 The role of the Village Councils/Village Level Disaster Management

Committees at the various stages of disaster management viz., prevention,
mitigation, preparedness, response, restoration and rehabilitation may be
highlighted here for a better understanding of their contribution.
i) Prevention: The Village Councils/Village Level Disaster Management

Committees have always played a crucial role in the prevention of disaster
within their respective jurisdiction. They clarify to the community the
gravity of any impending threats and potential disaster through public
announcement systems and social media platforms. They also identify
possible disaster threats especially where landslides are at risk to the
concerned DDMA.
ii) Mitigation: Since the implementation of State Disaster Mitigation Fund

(SDMF) in Mizoram, the Village Councils/Village Level Disaster
Management Committees proactively identify locations where mitigation
funds have to be utilized and intimate the same to the concerned DDMA’s.
The DDMA is responsible for submission of the same to the Appraisal
Committee.
iii) Preparedness: Village Councils/Village Level Disaster Management

Committees have been responsible for preparing Village Disaster
Management Plan. Under Preparedness and Capacity Building funding
windows of the State Disaster Response Fund (SDRF), the Village
Councils/Village Level Disaster Management Committees will be
responsible for preparing Village Disaster Management Plan.
iv) Response: In the event of a crisis, the Village Councils/Village Level

Disaster Management Committees are the first responders in their
communities. Their contribution is crucial for saving lives, reducing
deaths, and preventing additional disasters with low financial
ramifications because local responses are helped mostly through
voluntary effort and dedication by civil societies and non-governmental
organisations.
~ 333 ~
__________________________________________________________________________________
Table 10.3 Trends in utilisation of SDRF by District Disaster Management

Authorities
(₹ in lakh)
Name of items (head-
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
Sl.
wise) as per SDRF
No.
norms of assistance
1 2 3 4 5 6 7 8 9
1 Gratuitous Relief 10.88 38.86 70.30 88.05 37.01 33.51 90.93
Search and rescue
2 0.20 0.41 0.72 4.72 5.26 11.80 4.57
operation
3 Relief measures 6.88 21.40 46.91 22.78
Clearance of affected
4 92.44 75.39 70.70 144.19 28.14 44.10 84.71
areas
5 Agriculture 57.84 71.70 151.13 134.92 69.40 40.64 99.65
Animal Husbandry-
6 Assistance to small and 0.01 2.63 0.20 2.57 0.05 1.17 1.52
marginal farmers
7 Fishery 1.25 7.71 6.55 18.36 0.89 4.06 1.12
Handicrafts/handloom -
8 0.00 0.62 0.00 0.04 0.04 0.00 0.00
Assistance to artisans
9 Housing 354.44 237.67 447.62 470.05 484.94 362.40 168.85
Infrastructure -
repair/restoration (of
immediate nature) of (1)
roads and bridges (2)
drinking water supply
10 5.89 42.65 125.83 1011.67 153.78 62.52 75.32
works (3) irrigation (4)
power (5) Schools (6)
Primary Health Centres (7)
Community assets owned
by Panchayats.
Procurement of essential
search, rescue and
evacuation equipment
11 4.78 7.73 16.54 16.47 40.09 45.85 67.86
including communication
equipment, etc. for
response to disaster
12 Capacity Building 5.09 6.43 5.18 6.11 7.49 16.79 22.56
13 State specific disasters 0.00 4.00 6.00 0.00 8.00 0.00 6.00
Measures for quarantine,
sample collection and
14 0.00 0.00 0.00 0.00 10.41 524.18 311.21
screening (relating to
Covid-19)
Procurement of essential
15 equipment/labs for 0.00 0.00 0.00 0.00 6.08 65.17 23.77
response to Covid-19
TOTAL 539.71 495.79 900.76 1897.16 872.99 1259.09 980.84
Source: DCs of all districts
~ 334 ~
__________________________________________________________________________________
v) Restoration: Village Councils/Village Level Disaster Management

Committees, with the support of civil societies and non-governmental
organisations, play critical roles in the restoration of public and private
properties, particularly by constructing houses for natural disaster
victims, mostly through community work. Since Mizoram is prone to
landslides, roadways are frequently obstructed. In that case, the Village
Councils/Village Level Disaster Management Committees alert the DDMAs
and take the appropriate steps to clean the roads using machines.
vi) Rehabilitation: Village Councils/Village Level Disaster Management

Committees, with the support of civil societies and NGO's, play critical
roles in recovery, primarily through community work by providing food
and clothing to natural disaster victims, as SDRF assistance is
insufficient. Village Councils/Village Level Disaster Management
Committees are also in charge of immediate rehabilitation, which includes
selecting buildings where victims would be kept until a permanent
solution is found.
10.9 In the backdrop of the crucial role played by village level disaster management
committees, it is considered apt to understand the disbursal of funds to village
level authorities such as the Village Councils/Village Level Disaster
Management Committees or Local Councils/Local Level Disaster Management
Committees and NOT to individuals. The Commission sought data on the
above lines from all districts and the response may be seen in the table 10.4.
10.10 The table shows that the disbursal of SDRF to village and local level disaster
management authorities is quite minimal as compared to the amount of SDRF
received by the respective DDMAs in table 10.1. The figure in the case of seven
districts is NIL over the years under consideration. While the incidence of
disasters differs across districts and the norms of assistance do not specifically
prescribe that assistance be disbursed to village or local level authorities, it is
considered prudent for the DDMAs to disburse assistance as per the standing
norms to the village councils or village level disaster management committees
or local councils or local level disaster management committees depending
upon the nature of assistance provided since these local authorities are the
very first responders in any event of disasters or threatening disaster
situations affecting the community and who incur expenditures from their
own sources. We, therefore, urge the DDMAs to consider releasing
assistance as per norms to the village level disaster management
committees or local level disaster management committees, as the case
may be, depending upon the nature of assistance and the type of disaster
from the State Disaster Response Fund lying at their disposal.
~ 335 ~
__________________________________________________________________________________
Table 10.4 Trends in disbursal of SDRF to village/local level authorities
(₹ in lakh)
Name of item as per
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
SDRF norms upon which
District
assistance was
sanctioned
1 3 4 5 6 7 8 9 10
Clearance of debris in
Aizawl 0.92 2.94 0.18 0.12 5.25 0.00 0.00
public areas
Lunglei NIL 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Siaha NIL 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Champhai NIL 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Kolasib NIL 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Clearance of affected area 4.95 1.20 3.43 2.78 1.60 1.56 2.76
Infrastructure
immediate nature) of 1.20 2.48 0.30 0.00 0.00 0.00 0.00
damage infrastructure: (1)
Roads & Bridges
Infrastructure
Serchhip
immediate nature) of NIL 0.05 0.00 0.00 0.00 0.00 0.00
damage infrastructure:
(7) Anganwadi
Relief Measures 0.18 0.00 0.00 0.00 0.00 0.00 0.00
Search & Rescue
0.00 0.00 0.00 0.00 0.00 0.00 0.27
Operation (Forest Fire)
Lawngtlai NIL 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Mamit NIL 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Infrastructure
immediate nature) of 0.00 0.00 0.00 0.00 4.17 0.00 5.00
Saitual
damage infrastructure:
(1) Roads & Bridges
Clearance of Debris 0.00 0.00 0.00 0.00 0.00 7.50 0.00
Clearance of Debris 0.00 0.00 0.00 0.00 0.00 4.74 10.05
Infrastructure
Khawzawl repair/restoration (of
0.00 0.00 0.00 0.00 0.80 0.50 1.20
immediate nature) of
damage infrastructure
Hnahthial NIL 0.00 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL 7.25 6.66 3.91 2.90 11.82 14.30 19.28
Source: DCs of all districts
~ 336 ~
__________________________________________________________________________________
10.11 In view of the substantial amount of funds at the disposal of the

respective DDMAs as can be seen in table 10.1, we find that separate
grants-in-aid for the purpose of disaster management at the village or
local level may not be recommended from the Consolidated Fund of
Mizoram. We, however, recommend that village councils, municipalities
and autonomous district councils can utilise a portion of the tax
devolutions, not more than 20% in a year, for the purpose of
strengthening disaster mitigation efforts.
10.12 We find that the role of the village-level disaster management committees has
been very instrumental in the various stages of disaster management, from
disaster preparedness to rehabilitation efforts. The need to enhance their
capacity by imparting appropriate training at regular intervals cannot be
overemphasised since the members of the village-level disaster management
committees and the various disaster management teams in the respective
villages and localities keep changing. We acknowledge that different districts
impart appropriate training programmes to their VLDMCs. However,
considering the significant role of the VLDMCs/ LLDMCs and the need to
enhance their capacity on a regular basis, the Commission recommends
that the DDMAs organise capacity-building programmes for the members
of village-level disaster management committees and the different
disaster management teams at least on a yearly basis to enable them to
discharge their duties effectively in the various stages of disaster
management.
10.13 Since the Village Councils/Village Level Disaster Management Committees are
the first line of responders in any threatening disaster situation or disasters,
they must be equipped with essential logistical support for undertaking search
and rescue, first aid, etc. As the procurement of essential search, rescue
and evacuation equipment including communication equipment, etc. for
response to disaster is one of the permissible items for expenditure under
SDRF, we recommend that necessary logistical support as considered
necessary by the respective DDMAs be provided to the Village Level
Disaster Management Committees/ Local Level Disaster Management
Committees.
Management of ecology, environment and climate change at village/local level
10.14 Paragraph 4(vii) of our terms of reference specifies that the Commission, while
to the need to manage ecology, environment and climate change at the local
levels.
10.15 Mizoram is a state with a wide variety of wildlife. The state is covered in rolling
hills, with roughly 21 significant hill features running through it. The climate-
~ 337 ~
__________________________________________________________________________________
sensitive Himalayan eco-system includes streams, steep gorges, and evergreen

forests. The area is also extremely susceptible to the effects of a changing
climate, and occasionally it is subject to strange weather phenomena. Due to
the biophysical and socioeconomic constraints, it also has a relatively low
capacity for adaptation. The state has extensive forest coverage supported by
ongoing conservation efforts.
10.16 In fact, the forests are extremely vulnerable to both anthropogenic activity and
climate change. In the upper reaches, it remains comfortably chilly despite the
summertime heat and moisture in the valleys. It has a pleasant climate with
winter lows of 11°C and summer highs of 20–30°C. However, evidence
indicating an increase in mean and maximum temperature over the past 10
years or so indicates that the effects of global warming have been felt here.
Also frequently occurring in March and April are severe storms that originate
in the northwest. The average annual rainfall in Mizoram is about 3000 mm,
and it is evenly distributed. The region is not prone to drought or flood.
10.17 The importance of forests in the mitigation of climate change has been better
understood in recent years. Forests act as a sink for atmospheric carbon
dioxide; they are the biggest terrestrial reservoir of carbon on the planet.
However, they become a source of carbon dioxide and other greenhouse gases
(GHGs) if they are cut, burned, or destroyed. Forestry interventions, especially
afforestation and eco-restoration activities, play a significant role in the
mitigation of climate change.
10.18 According to the Indian State of Forest Report, 2021, a biennial report released
by Forest Survey of India, Dehradun, the State of Mizoram has 17,820 sq. km.,
or 84.53 percent of the total geographical area, covered in forest. Since the
forest contains a wide variety of species and is a part of the Indo-Myanmar
Biodiversity Hotspot, it is imperative that special effort be made to maintain
and conserve it. Throughout the State, there are 7894.22 sq. km of Reserved
Forests and around 1878 sq. km of Protected Areas, including 1 Tiger Reserve,
2 National Parks, and 7 Wildlife Sanctuaries.
10.19 The State Government has been implementing various schemes towards
management of the environment and tackling issues of climate change, some
of the schemes are given below:
Green India Mission (GIM)

10.20 The State of Mizoram has been blessed with a plethora of flora and fauna. The
Mizoram Vulnerability Assessment Report of 2021, however, reveals that the
forest in Mizoram is disappearing as a result of jhum cultivation, uncontrolled
forest fires, illegal felling, and other development activities. According to the
~ 338 ~
__________________________________________________________________________________
Indian State of Forest Report, 2021, Mizoram currently has 84.53 percent of
its land covered by forest, with only 0.7 percent of that area being covered by
very dense forest. Over the previous two years, the forest in Mizoram has also
shrunk by 1.03 percent. Most crucially, while having some of the highest levels
of forest cover in the nation, Mizoram's forest quality is not at the desired level.
Less than 40% of the forest cover is covered by a canopy.
10.21 The goal of the Green India Mission (GIM) is to expand the State's forest
wealth. In areas where GIM has been implemented during the past five years,
the fundamental goals of the mission—protecting, restoring, and increasing
India's dwindling forest cover and responding to climate change through
adaptation and mitigation measures—have been successfully met. GIM
emphasises several ecosystem services. Additionally, GIM offers a
comprehensive understanding of sustainability that goes beyond planting
trees. It incorporates cutting-edge technology, forestry science, and traditional
ecological knowledge of communities. The Mission works to improve the
carbon sinks in other ecosystems and sustainably maintains forests. With the
help of this Mission, vulnerable species and ecosystems can gradually adapt
to a changing climate, as well as communities that depend on forests.
Improving the quality of the forest cover on forest land is the main goal of this
mission in the State of Mizoram, which is followed by expanding the forest
cover on non-forest land.
10.22 GIM also facilitates improved coordination in developing forests and their
fringe areas holistically and sustainably. The involvement of grass-roots
organisations through VFDC and local communities in planning, decision-
making, implementation, and monitoring has paved the way to achieving the
main objective of this mission. The mission’s emphasis on the landscape
approach of forest and non-forest land provides a better opportunity to meet
targets as envisaged in the National Forest Policy. For the next 10 financial
years, it is imperative to continue the Green India Mission, considering the
benefits it has brought to the environment and the economic uplift of the
villagers it has already brought and will bring in the future.
National Afforestation Programme (NAP)
10.23 National Afforestation Programme (NAP) which is a Centrally Sponsored
Scheme (CSS) funded by National Afforestation and Eco-Development Board,
aims at rehabilitation of degraded forest and adjoining lands. The programme
is being implemented effectively in the State through Village Forest
Development Committees. Under this programme, plantations are carried out
in the degraded forests.
Nagar Van
10.24 The scheme primarily aims at the creation of “Nagar Vans” (city forests), each
of size 10–50 ha, in cities or towns having a municipal corporation or
municipality. The first aim is to protect forest land within cities or towns or its
fringes from degradation and encroachment and actively engage local
residents and different agencies in developing biodiverse forests for social and
~ 339 ~
__________________________________________________________________________________
environmental benefits in an urban landscape. In the event of the non-

availability of forest land, other public land may also be considered for the
creation of Nagar Van. The scheme is fully funded by the Government of India.
Two projects, one each for Aizawl and Champhai districts, have been approved
by the Government of India.
Project Tiger : Dampa Tiger Reserve
10.25 Tiger is considered as an umbrella species whose conservation indirectly

protects many other species at the ecosystem and landscape level. The Tigers
in India account for 70% of the world's total Tiger population (3,890). Project
Tiger was launched in 1973 to foster an exclusive tiger agenda in the core
areas of Tiger Reserves, with an inclusive people oriented agenda in the buffer.
This scheme is undertaken by an autonomous body, the National Tiger
Conservation Authority (NTCA).
10.26 Dampa Tiger Reserve has been selected as the 5th in the country in terms of
highest forest cover for tiger reserves, with an area of 988 sq. km. It is
recognised as an "important bird and biodiversity area" and supports around
60 species of mammals and around 250 species of avian fauna. Many of the
species found within the reserve are classified as rare and endangered. It has
one of the highest densities of clouded leopards (Neofelis nebulosa) and
marbled cats (Pardofelis marmorata) in mainland Southeast Asia. Recent
camera trappings have also confirmed the presence of tigers in the reserve,
which is a very important discovery that imposes the need to maintain the
reserve and enhance protection and patrolling duties.
Forest Fire Prevention & Management Scheme (FFP&MS)
10.27 This is a new scheme that focuses mainly on the control of forest fires and
their related issues. The Forest Fire Prevention and Management Scheme is
the only centrally funded programme specifically dedicated to assisting the
states in dealing with forest fires. The forests of the state are highly vulnerable
to forest fires, mainly due to the age-old agriculture practice of jhumming, and
hence the continuation of the scheme is vital and crucial. Under this scheme,
various works for fire prevention are conducted, such as the creation of a fire
line, maintenance of a fire line, controlled burning, the engagement of
firewatchers, etc.
National Plan for Conservation of Aquatic Eco-System (NPCA)
10.28 The National Action Plan for Conservation of Aquatic Ecosystems (NPCA) was
launched in 2013 by merging two erstwhile schemes, viz., the National Lake
Conservation Plan (NLCP) and the National Wetlands Conservation
Programme (NWCP). The idea was that a single programme would help
promote better synergy and avoid overlap in administrative functions.
~ 340 ~
__________________________________________________________________________________
Mizoram has two wetlands under this scheme, i.e., Tamdil Wetland and Pala
Wetland, for which an Integrated Management Plan (IMP) for a period of 5
years has been approved. There are nine other wetlands in the state that have
been identified and are being examined to bring them under the umbrella of
this scheme to conserve them.
10.29 From a survey of the schemes implemented by the State Government for
management of ecology and combating the effects of climate change, it
emerges that people’s participation is key to conservation of the environment
at the local level and hence, was spearheaded by the adoption of Joint Forest
Management Committees (JFMC) or Village Forest Development Committees
(VFDC) since the year 1998. The mechanism was envisaged to encourage the
active involvement of the local people in the enrichment, protection, and
sustainable management of the forests. This method of decentralised
governance has led to the implementation of projects by the committees in
their respective localities, where the benefits are shared with them while
contributing significantly to ecological equilibrium and environmental
stability.
10.30 From a broad understanding of the schemes implemented by the

Central/State Governments and the capacity of the local bodies along
with the effectiveness of people’s participation, we consider that the
intervention of the rural and urban local bodies including the district
councils along the following lines can be effective in management of
environment and tackling the effects of climate change at the local level:
i) With the goal of sustainable agriculture in view, local bodies may take
initiative for construction of hill slope terraces for conservation of moisture
and cultivation of food grains, vegetables, pulses and oilseed crops.
Promoting wet rice cultivation (WRC) on available lands having 0-10%
slope and improvement of existing WRCs is another crucial intervention.
Promotion of organic farming through usage of compost and vermi
compost will also be very important. All these strategies will help tackle
the perennial problem of jhum cultivation.
ii) Ecological restoration in terms of reforestation and afforestation of

degraded lands will reduce the ill effect of climate change. The local bodies
can play a pivotal role in the process of ecological restoration through
social forestry, agro-forestry, farm forestry, reforestation of urban lands
and soil moisture conservation measures.
iii) Promotion of clean energy in rural and urban areas, especially through
increased adoption of solar energy for the purpose of home lighting, water
heating, public lighting systems, etc. Local bodies will be particularly
helpful in raising awareness among citizens about the need for energy
efficiency measures, the benefits of energy-efficient star-rated devices,
their durability, and the application of energy-efficient devices in
infrastructure projects.
~ 341 ~
__________________________________________________________________________________
iv) Conservation of water through the construction of water harvesting

structures, dug-out ponds, farm ponds, terraces, etc. wherever feasible
since surface runoff of water is very high in a hilly area like Mizoram. Local
bodies can intervene in water body conservation for the fishery sector and
the establishment of fishery units in reservoirs and riverine areas.
v) As per Section 41(1) of the Biodiversity Act, 2022, every local body is
required to constitute a Biodiversity Management Committee (BMC) within
its area for the purpose of promoting conservation, sustainable use, and
documentation of biological diversity, including the preservation of
habitats, conservation of land races, folk varieties and cultivars,
domesticated stocks and breeds of animals and microorganisms, and the
chronicling of knowledge relating to biological diversity. As per Section
41(2), the National Biodiversity Authority and the State Biodiversity
Boards shall consult the Biodiversity Management Committees before
taking any decision relating to the use of biological resources and the
knowledge associated with such resources occurring within the territorial
jurisdiction of the Biodiversity Management Committee. As per Section
41(3), the Biodiversity Management Committees may levy charges by way
of collection fees from any person for accessing or collecting any biological
resources for commercial purposes from areas falling within their
territorial jurisdiction. As per the information furnished by the Local
Administration Department, 534 biodiversity management committees
have been formed so far across the state. The local biodiversity
management committees can play a significant role in biodiversity
conservation, provided they follow the Act in letter and spirit.
vi) Prevention of forest fires within the territorial limits of the respective local
bodies since it not only deprives rare biodiversity species of their habitat
but often goes out of control, setting even unintended territories on fire.
10.31 We do not recommend separate grants-in-aid to the local bodies for

maintenance of the environment and tackling issues of climate change in view
of the plethora of schemes funded by the Central/State government as
highlighted in the preceding paragraphs. We, however, recommend that
village councils, municipalities and autonomous district councils can
utilise a portion of the tax devolutions, not more than 10% in a year, for
the purpose of forest conservation, maintenance of ecological balance
and tackling issues of climate change, if considered necessary.
Innovative monitoring and appraisal system at the village/local level
10.32 Paragraph 4(viii) of our terms of reference specifies that the Commission, while
to the need to improve the quality of public expenditure to obtain better
~ 342 ~
__________________________________________________________________________________
outputs and outcomes through an innovative monitoring and appraisal system

at the local level.
10.33 There are standard mechanisms for monitoring and appraisal of the
expenditures incurred by local bodies under the State government, i.e., the
statutory audit undertaken by the Director of Local Fund Audit as per the
provisions of the Mizoram Local Funds (Accounts and Audit) Act, 2006 and
the corresponding rules/manuals. The Director Local Fund Audit is required
to conduct an audit on the accounts of the local authorities in accordance with
the Technical Guidance and Supervision of the Comptroller & Auditor General
of India, as per the provisions of rule 21 of the Mizoram Local Fund (Accounts
& Audit) Rules, 2012. The local authorities in this context include, among
others, village councils, local councils, municipalities and autonomous district
councils. The Annual Report on such audit must be duly laid before the State
Legislative Assembly. The Director of Local Fund Audit, who continues to work
under the administrative supervision of the Finance Department, will be in
charge of the statutory audit and certification of accounts for the local
authority. Additionally, audit reports on 5% of the audited local bodies are to
be sent by the Director of Local Fund Audit to the Accountant General,
Mizoram, for Technical Inspection.
10.34 The latest audit report of the Director of Local Fund Audit for the accounting
year ending 31st March, 2017 was laid before the State Legislature on the 12th
June, 2019 covering an audit of the accounts of (a) village councils under
LADC for the year 2012-13, (b) village councils under Kolasib district for the
years 2012-13 and 2013-14, (c) Aizawl Municipal Corporation including local
councils for the period from 01.10.2012 to 30.09.2014, and (d) Aizawl
Municipal Corporation for the period from October, 2014 up to March, 2016.
Expenditures of the local authorities beyond the aforesaid period have either
not been audited or the audit report have not been laid before the State
legislature. There appears to be huge gaps between the actual conduct of audit
and the laying of the audit report before the State legislature. Against this
backdrop, the importance of local fund audits towards ensuring integrity in
public expenditure cannot be overemphasised since the very objective of
audits is to help the local authorities to be prudent while spending public
money, to remain cautious, and to maintain integrity and uprightness in
financial transactions by making recommendations and suggestions in the
audit reports. Thus, we urge the Director of Local Fund Audit to expedite
the process of auditing the accounts of the village councils,
municipalities and the autonomous district councils for the remaining
period with the auditors available at their disposal to help ensure that
expenditures are incurred essentially for the purpose for which they were
sanctioned. In case the number of auditors at their disposal is
insufficient, it may bring the issue for consideration of the State
Government in Finance Department and seek the services of experienced
auditors who have retired from government service by re-employing them
~ 343 ~
__________________________________________________________________________________
on contract at a fixed remuneration since such retired officials below 65

years of age can largely perform such statutory duties efficiently.
10.35 The Accountant General has also come out with the Annual Technical
Inspection Report on the accounts of the rural local bodies and urban local
body for the year ended March, 2017 which was laid before the table of the
State Legislative Assembly on the 21st November, 2019. The Annual Technical
Inspection Report has been prepared in terms of the Technical Guidance and
Supervision under section 20(1) of the Comptroller & Auditor General of
India’s (Duties, Powers and Conditions of Service) Act, 1971. In addition, the
Accountant General also undertakes audit of the autonomous district councils
under paragraph 7(4) of the Sixth Schedule to the Constitution of India. We
are made to understand that the audit reports of the accounts of the three
autonomous district councils for the year 2015-16 are being laid before the
respective district councils as late as in the year 2022 with a significant part
of the period covered by the 1st State Finance Commission apparently not
being audited. In the light of the above position, we also urge the Accountant
General, Mizoram to expedite the process of auditing the accounts of the
three autonomous district councils since a significantly large chunk of
public funds have been utilised year after year in the administration of
the councils. Timely auditing will also ensure that the authorities in the
district councils are prudent while spending public money and remain
cautious while maintaining integrity and uprightness in financial
transactions.
10.36 The effectiveness and significance of the standard monitoring mechanisms

such as the statutory audit is well known. As prescribed in our terms of
reference, we may venture to explore some innovative monitoring and
appraisal methods which are both cost effective and can be implemented with
ease at the village/local level without much disruption. One such innovative
monitoring mechanism is the social audit of works. The system of social audit,
perhaps, is quite popular amongst the rural populace since several centrally
sponsored schemes for development of rural areas such as Mahatma Gandhi
National Rural Employment Guarantee Schemes, Pradhan Mantri Awaas
Yojana, Integrated Watershed Management Programme, etc. are subjected to
social audit.
10.37 Social Audit basically involves the examination and assessment of a

programme/scheme conducted with the active involvement of people and
comparing official records with actual ground realities. Social audit is indeed
a strong tool for social change, community involvement, and government
accountability. Along with assistance from an impartial social audit
organisation that supports the process, it is essential to encourage people to
participate in the audit. Social audit gives the public a voice in government by
allowing them to participate in the implementation of programmes and hold
officials accountable, making government schemes more transparent, and it
~ 344 ~
__________________________________________________________________________________
empowers people at the local level, strengthening decentralized governance.

We, therefore, recommend that social audits of works implemented by
local bodies with funds received from tax devolutions and grants-in-aid
from the State government be undertaken through an independent social
audit organisation, like the Social Audit Unit for auditing of Centrally
Sponsored Schemes under Ministry of Rural Development, with a view to
significantly improving the quality of public expenditure.
10.38 In a bid to improve transparency and enhance the accountability of the

local bodies, we also suggest that signboards be erected/installed on
every work executed under funds received from tax devolutions or grants-
in-aid from the State government, similar to the signboards erected by
Village Employment Councils while undertaking works under MGNREGS,
with the following details:
i) Name of work:
ii) Sanctioned amount:
iii) Source of fund:
iv) Date of start of work:
v) Date of completion of work:
vi) Unit of measurement (dimensions/area/length, etc.):
vii) Name of implementing agency:
viii) Name and contact no. of Local Body Ombudsman:
10.39 To ensure regular and periodic monitoring and appraisal of works

executed by local bodies, we also suggest that works executed by local
bodies with funds from tax devolutions and grant-in-aid from the state
government be included as one of the agenda items of the District
Development Coordination and Monitoring Committee (DISHA) formed
by the Ministry of Rural Development, Government of India, to undertake
monitoring of works executed under various centrally sponsored schemes
on a quarterly basis district-wise under the chairmanship of the hon’ble
Member of Parliament (Lok Sabha) with the hon’ble Member of Parliament
(Rajya Sabha) as the co-chairman.
10.40 DISHA is essentially formed with a view to fulfill the objective of ensuring a
better coordination among all the elected representatives in Parliament, State
Legislatures and Local Governments (Village Councils/Municipal
Bodies/Autonomous District Councils) for efficient and time-bound
development of districts in our country. These Committees could monitor the
implementation of the programmes in accordance with prescribed procedures
and guidelines and promote synergy and convergence for greater impact. The
periodic monitoring undertaken by the DISHA with the Deputy Commissioner
of the district as the member secretary carries much weight with follow-up
actions closely monitored by the Deputy Commissioner himself.
~ 345 ~
__________________________________________________________________________________
Timely constitution of State Finance Commissions
10.41 Section 3(1) of the Mizoram Finance Commission Act, 2010 envisages the
constitution of a State Finance Commission within one year from the
commencement of the Act (i.e., the Act received the assent of the Hon’ble
Governor on the 26th of October, 2010) and thereafter at the expiry “of every
fifth year." The constitutional provision relating to the constitution of State
Finance Commissions (SFC) as enshrined in clause (1) of Article 243-I is also
on the same lines. The First State Finance Commission, covering the period of
5 years from 2015-16 to 2019-20, was duly constituted by the State
Government vide Notification No. G.11021/13/93-FMC dated September 30,
2011.
10.42 The 2nd State Finance Commission of Mizoram, according to the constitutional
and statutory provisions, should have been constituted after the expiry of the
fifth year from the constitution of the 1st SFC, i.e., after 30th September, 2016,
covering the period from 2020–21 up to 2024–25. However, the State
Government came out with the notification for the constitution of the 2nd SFC,
vide Notification No. G.11021/1/2017-FMC dated 18th April, 2021, covering
the period from 2021–22 up to 2025–26. The State Government followed up
with a second notification for constitution of the 2 nd SFC vide
No.G.11021/1/2017-FMC dt. 24.09.2021 which enabled the Chairman and
Member Secretary to assume charge of their office on the 1st October, 2021.
10.43 In the case of States following the 73rd and 74th Constitutional Amendment
Acts, the constitution of a sixth SFC already becomes due by the year 2019-
20 but not many states have done so, with the exception of the State of Kerala
where the 6th SFC was constituted on the 31st October, 2019.
10.44 The above facts highlight the complacency regarding timely constitution of a
State Finance Commission, which is indeed a constitutional and statutory
requirement. Non-constitution of a SFC leaves the local bodies viz., the village
councils, municipalities and the autonomous district councils at the whims
and fancies of the executive with regard to devolution of their due share of
taxes, duties, tolls and fees leviable by the State. The recommendation of a
SFC ensures that the local bodies do receive their due share of taxes and
further results in an equitable distribution of tax devolution amongst the
different types of local bodies and between the local bodies at various levels.
The significance of the role of SFCs for local bodies and its timely constitution
cannot be overemphasized.
10.45 It has also been observed that State Finance Commissions also take
considerable period of time to make an assessment of the finances of the local
bodies and submit their recommendations to the Governor. The following table
highlights the time taken by various State Finance Commissions to submit
their recommendations.
~ 346 ~
__________________________________________________________________________________
Table 10.5 Time taken by State Finance Commissions to submit reports
Name of State Date of Time taken

Sl. Award Date of
Finance submission to submit
No. period appointment
Commission of report report
3rd Andhra Pradesh 2005-06 to 3 years 1
1. 23.12.2004 25.01.2008
SFC 2009-10 month
2nd Arunachal 2015-16 to 2 years 2
2. 23.08.2012 30.06.2014
Pradesh SFC 2019-20 months
2015-16 to 3 years 8
3. 5th Assam SFC 05.03.2013 30.11.2016
2019-20 months
2015-16 to 3 years 2
4. 5th Bihar SFC 13.12.2013 02.02.2016
2019-20 months
2 Chhattisgarh
nd 2012-13 to 1 year 7
5. 23.07.2011 March, 2013
SFC 2016-17 months
2007-08 to 2 years 4
6. 2nd Goa SFC 16.08.2005 31.12.2007
2011-12 months
2005-06 to 2 year 7
7. 2nd Gujarat SFC 19.11.2003 June, 2006
2009-10 months
2016-17 to 1 year 4
8. 5th Haryana SFC 26.05.2016 13.09.2017
2020-21 months
5th Himachal 2017-18 to 4 years 2
9. 19.11.2014 19.01.2018
Pradesh SFC 2021-22 months
1 Jammu &
st 2007-08 to 3 years 3
10. 18.08.2007 25.11.2010
Kashmir SFC 2011-12 months
2013-14 to 2 years 6
11. 4th Karnataka SFC 21.12.2015 July, 2018
2017-18 months
2016-17 to 2 years 3
12. 5th Kerala SFC 17.12.2014 March, 2016
2020-21 months
4 Madhya
th 2011-12 to January, 4 years 11
13. 27.01.2012
Pradesh SFC 2015-16 2017 months
4th Maharashtra 2011-12 to October, 6 year 8
14. 10.02.2011
SFC 2015-16 2017 months
2013-14 to 1 year 10
15. 3rd Manipur SFC 18.02.2013 15.12.2014
2017-18 months
2015-16 to 3 years 4
16. 1st Mizoram SFC 30.09.2011 19.02.2015
2019-20 months
2015-16 to September,
17. 4th Odisha SFC 31.10.2013 11 months
2019-20 2014
2016-17 to 2 year 8
18. 5th Punjab SFC 18.09.2013 29.06.2016
2020-21 months
2010-11 to September, 2 year 5
19. 4th Rajasthan SFC 13.04.2011
2014-15 2013 months
2020-21 to
20. 5th Sikkim SFC 17.08.2016 July, 2017 11 months
2024-25
2017-18 to
21. 5th Tamil Nadu SFC 01.12.2014 27.12.2016 2 years
2021-22
2009-10 to October, 1 years 7
22. 3rd Tripura SFC 28.03.2008
2014-15 2009 months
4th Uttar Pradesh 2011-12 to
23. 19.12.2011 16.12.2014 3 Years
SFC 2015-16
4 Uttarakhand
th 2016-17 to 1 year 4
24. 02.02.2015 31.05.2016
SFC 2020-21 months
4th West Bengal 2015-16 to February, 2 years 10
25. 30.04.2013
SFC 2019-20 2016 months
Source: “Overview of State Finance Commission Reports” by National Institute of Public
Finance and Policy, New Delhi (October, 2018).
~ 347 ~
__________________________________________________________________________________
10.46 The time taken, as highlighted in the above table, also points to the need to
constitute State Finance Commissions well before the onset of the award
period so that funds are devolved upon the local bodies for the award period
in full as recommended by an independent State Finance Commissions.
Submission of reports after the onset of the award period plus the time taken
by the State governments in submitting an action taken report before the State
legislature often results in undesirable delays in the release of devolutions,
with the local bodies suffering the most.
10.47 Considering the above points, we recommend that the State Government
follow the constitutional and statutory provisions regarding the timely
constitution of a State Finance Commission in letter and spirit and
proactively take steps for the constitution of the 3rd State Finance
Commission in the overall interest of the local governments in Mizoram.
State Finance Commission Cell in Finance Department
10.48 The 1st State Finance Commission in its report at paragraph 11.33
recommended that a permanent secretariat or cell of the State Finance
Commission be created in the Secretariat of Finance Department as a link
between the First Commission and the Second Commission with the existing
Secretariat staff headed by an officer. The rationale for establishment of a
permanent secretariat of SFC as recommended by the 1st SFC is very genuine
and deserves due consideration although the same had not been considered
by the State Government then.
10.49 In the absence of a permanent secretariat or cell of the State Finance

Commission, the 2nd SFC is compelled to start from scratch to acquire critical
financial information from the local bodies. The challenge of obtaining credible
information from the village councils pertaining to their finances is indeed very
real. The case of autonomous district councils and municipalities with
dedicated personnel handling finance and accounts is slightly better. Perhaps
the lack of a reliable database pertaining to the finances of panchayats and
municipalities is also apparently an issue across the country. The task of
obtaining information on the implementation of the accepted
recommendations of the 1st SFC of Mizoram is also not an easy one.
10.50 We, therefore, recommend that a permanent cell of the State Finance
Commission headed by a suitable officer be established in the Finance
Department to closely monitor the implementation of the accepted
recommendations of the State Finance Commission by various
stakeholders and obtain crucial information pertaining to the finances of
the local bodies regularly, at least on a quarterly basis. The information so
collected over a period of time will be subsequently handed over to the next
SFC, which will definitely be in a position to begin their work from day one
~ 348 ~
__________________________________________________________________________________
without having to spend a considerable period of time obtaining critical

information.
10.51 We consider it appropriate to lay down the broad format for the collection
of reliable databases by the proposed State Finance Commission Cell in
the Finance Department from the local bodies, right from the
autonomous district councils to the more than 800 village councils
across the state. Information may be collected starting from the year
2021–22, i.e., the starting year of the award period of the 2nd State
Finance Commission of Mizoram. The suggested formats for the
collection of information from the autonomous district councils are
enclosed at Annexures 10.1 to 10.6, the formats for municipalities at
Annexures 10.7 to 10.11, and the formats for village councils are
enclosed at Annexures 10.12 and 10.13. We reiterate that these formats are
only suggestive in nature, and the State government may alter, add, or
subtract from them as found necessary to best capture the finances of the
local bodies.
Grants for autonomous district councils from Union Finance Commission
10.52 The tribal areas under the Sixth Schedule to the Constitution, inclusive of the
areas governed by the three autonomous district councils of Lai, Mara, and
Chakma falling within Siaha and Lawngtlai districts, are exempted from the
operation of (a) Part IX (Panchayats) of the Constitution as per article 243M of
the Constitution, and (b) Part IX-A (Municipalities) of the Constitution as per
article 243ZC of the Constitution. In fact, the entire area of Mizoram is
exempted from the operation of Part IX (Panchayats) of the Constitution as per
article 243M. The entire area of Mizoram apparently falls under the so-called
“Excluded Areas”, in the parlance of the Union Finance Commissions with
respect to grants for rural local bodies.
10.53 The treatment of these so-called “Excluded Areas” with regard to grants for
local bodies differs across successive Union Finance Commissions. The 13th
Finance Commission recommended grants amounting to ₹15.11 crore for the
Excluded Areas in the state of Mizoram for the award period after considering
Parts IX and IX-A, Articles 244, 280 and 275 of the Constitution, and it further
recommended that the states may appropriately allocate a portion of their
share of the general basic grant and general performance grant, to the special
areas i.e., areas under Sixth Schedule, in proportion to the population of these
areas.
10.54 The 14th Finance Commission did not recommend rural local body grants to
the Excluded Areas. It instead urged the Union Government to consider a
larger, sustained and more effective direct intervention for the upgradation of
administration as well as development of the areas covered under the proviso
to Article 275(1) and excluded from the consideration of Finance Commissions
~ 349 ~
__________________________________________________________________________________
in the terms of reference, in order to bring such areas on par with other areas.
Subsequent to the above suggestion, the Central Government in Ministry of
Finance allocated one-time grants amounting to ₹4544.00 lakh for the
excluded areas of Mizoram, which were realised in 2017-18. Further, a sum
of ₹1624.00 lakhs for the Village Councils in excluded areas has been released
by the Union Government in the year 2019-20.
10.55 The 15th Finance Commission recommended that rural local body grants be
distributed to even those areas which are not required to have panchayats
(Fifth and Sixth Schedule areas and Excluded Areas) in order to augment the
resources available for providing basic services by their respective local level
bodies despite the fact that the terms of reference of the Commission do not
include the provisos to Article 275(1) relating to grants to the Sixth Schedule
areas and taking into account that the per capita grants are considered due
to every resident in India. A sum of ₹362.00 crore is recommended as rural
local body grants for the state of Mizoram for the period from 2021-22 up to
2025-26, which also covers the elected Village Councils in the Sixth Schedule
areas.
10.56 One pertinent point which emerges from the recommendations of successive
Union Finance Commissions is that grants for upgradation of administration
and development of the Sixth Schedule areas apportioned for the autonomous
district councils themselves is missing, presumably on account of the fact that
Terms of Reference of the Commission do not include the provisos to article
275(1) relating to grants to the Sixth Schedule areas. We feel that the
subsequent Union Finance Commissions should give due consideration
to grants to the autonomous district councils under the Sixth Schedule
for upgradation of administration and development in order to bring
them on par with other areas, although the terms of reference may not
have specific provisions pertaining to grants for the Sixth Schedule areas,
on account of the following reasons:
i) The autonomous district councils are indeed duly constituted

constitutional bodies whose territorial area finds mention in the
Sixth Schedule to the Constitution of India.
ii) Grants are due to every resident of India, irrespective of the nature
of the authorities governing the area.
iii) The quantum of assistance provided by the Union Government to

the Sixth Schedule areas under the proviso to article 275(1) of the
Constitution has been very limited.
iv) The tribal areas in the Sixth Schedule are the areas with the most
pressing need for assistance, on account of their geographical
disabilities and comparatively lower level of development.
~ 350 ~
__________________________________________________________________________________
v) The State government can hardly finance the developmental and

capital expenditure requirements of the district councils since a
substantial amount of transfers from the State has to go towards
meeting the committed revenue expenditures, as highlighted in
Table 8.1 of this report.
High Level Monitoring Committee
10.57 It is understood that the recommendations of the Commission will be duly

examined in detail by the State government, and the action taken report will
be tabled before the Legislative Assembly as required under Section 3(2) of the
Mizoram Finance Commission Act, 2010. While certain recommendations can
be accepted and implemented immediately, there can also be cases in which
recommendations are either accepted in principle for subsequent
implementation or rejected. We believe that monitoring the implementation of
the accepted recommendations of the Commission by a committee headed by
the Chief Secretary will go a long way in ensuring the effective and efficient
implementation of the recommendations, which will in the end help fulfil the
cherished goal of decentralised governance. We, therefore, recommend that
the State government constitute a High Level Monitoring Committee
under the chairmanship of the Chief Secretary to undertake periodic
monitoring of the implementation of the accepted recommendations of
the Commission with representatives from all concerned stakeholders.
The Principal Secretary/Secretary of Finance Department will be the
Member Secretary of the committee, while secretarial assistance can be
provided by Finance Department (Finance Commission and Monitoring
Cell) until a separate State Finance Commission Cell, as recommended in
para 10.50, is established by the State government. The terms of
reference of the Committee will be as follows:
i) To monitor the release of tax devolutions from the State’s own

tax revenue to the local bodies;
ii) To monitor the release of grants-in-aid from the Consolidated
Fund of Mizoram to the local bodies;
iii) To assess the utilization of tax devolutions and grants-in-aid by
the local bodies and suggest measures, if any, for improving the
quality of expenditure;
iv) To assess the generation of own source revenues by the local
bodies and suggest measures, if any, for enhancing the receipts
of own revenues;
v) Any other matter in the interest of sound finance for the local
bodies.
~ 351 ~
CHAPTER ELEVEN
SUMMARY OF RECOMMENDATIONS
Status of implementation of the recommendations of the First State Finance

Commission of Mizoram
11.1 To ensure that there are no ambiguities on the acceptance or otherwise of
the State Government on the multiple recommendations of the Commission,
we recommend that the Explanatory Memorandum as to the actions taken
on the recommendations of the State Finance Commission shall clearly
state whether or not the recommendations are either accepted or not
accepted or to be considered/examined in due course on all the
recommendations. In addition, a paragraph(s) on the implementation of the
accepted recommendations including the actions proposed to be taken on
the recommendations that are to be examined separately/in due course be
included in the Explanatory Memorandum as mandated by the
Constitution.
(para 2.8)
11.2 We would recommend that the State Government consider all of the State
Finance Commission's recommendations in the larger interest of local
governments, even after laying the Action Taken Report before the State
Legislature.
(para 2.10)
State finances
11.3 We urge the State government to consider periodic revision of user charges
from water in view of the growing cost of provision of water supply along the
lines of the periodic revision of power tariff to boost the non-tax revenue
receipts for the State Government.
(para 4.29)
11.4 The State needs to give concerted efforts for mobilisation of greater tax
revenues without being complacent on the non-tax revenues. With the
coming into force of the GST regime, the tax base needs to be broadened
into areas which were hitherto left untaxed such as GST on the flourishing
picnic spots, amusement parks, stone quarry, etc. The Professions Tax can
also be broadened by levying the stipulated rates from the holders of permits
for transport vehicles, be it taxis, two wheeler taxis, buses, trucks or light
commercial vehicles to enhance the own tax revenue although the rates of
the Professions Tax cannot be raised by the State Government since the
same requires a Constitutional Amendment. The levy and collection of
Passenger and Goods Tax on fares in respect of passengers and goods
carried in a taxable vehicle may also be strictly enforced to garner more tax
~ 352 ~
Chapter 11 : Summary of recommendations
__________________________________________________________________________________
revenues from the flourishing passenger transport business. Receipt from

land revenue is also sticky during the period under consideration, the State
Government may consider raising the rates of land revenue on a periodic
basis without making a quantum jump so that the same is not burdensome
for the tax payers.
(para 4.38)
11.5 We suggest that the State government contain revenue expenditures within
the limit of the total revenue receipts as financing of revenue expenditures
from debt capital receipts can be detrimental for the finances of the State.
(para 4.72)
11.6 The expanding committed expenditure on salaries and wages as also

pensions should be a cause for concern for the State in its effort to enhance
the limited fiscal space. We, therefore, urge the State government to initiate
steps to limit the fast growing committed expenditures to enhance the fiscal
space of the State for taking up pressing developmental expenditures.
(para 4.81)
11.7 The main contributor of liabilities under the Public Accounts are the State
Provident Fund and the deposits parked under the head “K. Deposits and
Advances”. The accumulations under these heads are classified as debt
outstanding to the State Government and it would be in the fitness of things
for the State to reduce the liabilities from Public Accounts in a gradual
manner within a given time frame.
(para 4.104)
11.8 Higher the public debt, higher the likelihood that the public debt is
unsustainable. Higher public debt implies that large primary fiscal surplus
is needed to service a high level of debt but having a large fiscal surplus is
an uphill task for a small State like Mizoram with narrow base for
generating own source revenues and limited size of the economy. Further,
high public debt is generally associated with higher borrowing requirements
and therefore, a risk in which the State will be unable to fulfil borrowing
requirements from the markets or being able to do so at very high interest
rates. High level of public debt is also detrimental to the growth of the
economy. We suggest that the State government ensures that debt remains
at a sustainable level so that the State is not forced to increase taxes at
exorbitant rates or decrease public spending resulting in a decline in
economic growth.
(para 4.108)

Average (ARIMA) is adopted to forecast/project GSDP till the year 2025-26.
The data published by the Planning & Programme Implementation
Department, Government of Mizoram, in its annual Economic Survey are
~ 353 ~
__________________________________________________________________________________
used in the forecasting. The projections of GSDP for the State of Mizoram
within the award period of 5 years up to the year 2025-26 is shown in table
4.23.
(para 4.128)
11.10 The Auto-Regressive Integrated Moving Average (ARIMA) is adopted to

forecast the State’s own tax revenue and own non-tax revenue for the award
period of 5 years. The projected figures are shown in table 4.27.
(para 4.136)
11.11 The Commission also makes projections of the revenue expenditure of the
State for the award period following the ARIMA model which has been
considered most reliable to forecast the figures of SOTR and SONTR too.
The expenditure requirements in particular, on account of civil
administration, maintenance of law and order, debt servicing and other
committed expenditure and liabilities are duly taken into consideration
while forecasting the revenue expenditures. The projected figures are shown
in table 4.28
(para 4.137)
Review of the status of decentralised governance and devolution
11.12 We consider it appropriate to expand the list of functional activities to be

devolved to the Village Councils from the earlier recommendations of the
First State Finance Commission in paragraph 2.25 of the report. Thus, the
subjects and functional activities as listed in Table 5.4 may be devolved
sooner than later to the Village Councils established under the State
Government and the Autonomous District Councils to enable them to
function as institutions of local self-government.
(para 5.52)
11.13 To improve the responsiveness of Village Councils and the management of

critical records at the village level, as well as to strengthen village
administration, we believe that a capable and competent Secretary of the
Village Council, also known as the "village writer," is the bare minimum.
We propose that one of the essential qualifications for appointment as the
Secretary of the Village Council be a minimum educational qualification of
at least a High School Leaving Certificate. The necessary changes may be
incorporated into the relevant Village Council Acts.
(para 5.57)
11.14 The Commission believes that in order to achieve the Constitutional goal of
transforming Municipalities into institutions of self-government at the local
level with the mandate to prepare plans for economic development and social
justice, the eighteen functions of Municipality as provided in Section 57 of
the Mizoram Municipalities Act, 2007 as amended in line with the functions
listed in the Twelfth Schedule of the Constitution be progressively
transferred to the Municipalities in letter and spirit within the next two to
three years, inclusive of all institutions, schemes, buildings, other
~ 354 ~
__________________________________________________________________________________
properties, assets and liabilities connected with the matters. Following such
transfer, the State Government may allot to the Municipality such funds
and personnel as are required to enable the Municipality to discharge the
functions and duties transferred in accordance with the provisions of sub-
section (1) of section 59 of the Mizoram Municipalities Act, 2007, as
amended. To be more specific, the funds previously allocated to the State
Government Departments for the execution of the transferred functions be
proportionately reduced, while grants-in-aid to the Municipalities are
proportionately increased, and the officials in the State Government
handling such functions are posted either on deputation or attached to the
Municipalities to ensure seamless delivery of civic services.
(para 5.86)
11.15 In order to work out the modalities for transfer of functions including funds
and functionaries to the Municipalities, a Committee headed by the
Secretary in the Department of Urban Development & Poverty Alleviation
with representatives from the (a) department(s) whose services are to be
transferred to the Municipalities, (b) Finance Department, and (c)
Department of Personnel & Administrative Reforms be constituted by the
State Government.
(para 5.87)
11.16 With a view to ensure progressive devolution of functions in letter and spirit
upon the Municipalities, the Commission recommends that the functions
of the Municipalities as specified in section 57 of the Mizoram Municipalities
Act, 2007 as amended be broken up into activities and the functional
domain of the Municipalities be clearly specified to prevent overlapping of
functions between the State Government and the third tier of Government.
The Committee as recommended in paragraph 5.87 may also undertake the
task of activity mapping/functional assignment of subjects to
Municipalities.
(para 5.88)
11.17 On the issue of devolution of functionaries, the Commission considers that

an optimal solution to facilitate the Municipality to perform the functions
analogous to the functions performed by other local bodies established
under Part IX-A of the Constitution is the deployment of officers and staff
from the State Government either by means of deputation to the
Municipality or attach the requisite officers and staff performing similar
functions under the Departments of the State Government to the
Municipalities with proportionate increase in the transfers from the State
Government to meet their salary expenditure with corresponding reduction
in the budgetary allocation of such Departments, resulting in a net zero
expenditure on account of the deployment of more personnel to the
Municipalities.
(para 5.122)
~ 355 ~
__________________________________________________________________________________
11.18 The Second Administrative Reforms Commission also recommended that

the State Governments should encourage local bodies to outsource specific
functions to public or private agencies, as may be appropriate, through
enabling guidelines and support. Outsourcing of activities should be backed
by development of in-house capacity for monitoring and oversight of
outsourced activities. The Commission also reiterates the recommendation
of the Second Administrative Reforms Commission with regard to
outsourcing of personnel to deliver various civic functions without
compromising on quality of services. This will free the Municipalities from
the burden of mounting salaries and pension payments in the long run.
(para 5.123)
11.19 The Commission recommends that the Department of Urban Development

and Poverty Alleviation, in consultation with the apex training body of the
State viz., Administrative Training Institute (ATI) and the Municipalities,
prepare and implement a structured capacity building programme for the
officers and staff of the Municipalities in a time bound manner. The
programme should not only be theoretical in nature but include a significant
proportion of practical aspects such as case studies, field visits, group
discussions, presentations, etc. Best practices in urban local governance,
project management, financial management, management information
system, etc. may invariably form a part of the programme. In addition, a
special capacity building programme be organized by the ATI covering the
entire gamut of municipal administration for the elected Councillors only to
enable them to discharge their duties effectively.
(para 5.125)
11.20 The Commission believes it critical for the State Government to create an
optimal number of posts for the Lunglei Municipal Council, in addition to
the posts already created in the year 2022, which may invariably consist of
the posts listed in Table 5.18. The State Government may finalise the
number of posts to be created in consultation with the Municipality
concerned, taking into account the functions to be performed.
(para 5.128)
11.21 The Commission recommends that the Government Notification of 29 th

August, 2011 entrusting functions to the three Autonomous District
Councils be implemented in letter and spirit in the best interest of the
Councils as also to fulfil the spirit of decentralised governance. The
Administrative Departments should ensure that the entrusted functions are
not undertaken by their respective offices in the Sixth Schedule areas to
eliminate duplicity of functions. The Chief Secretary should review the
implementation of the Government Notification with the administrative
heads of the concerned Departments at least half yearly so that the
~ 356 ~
__________________________________________________________________________________
entrustment of functions can fully materialise at the ground level sooner

than later.
(para 5.153)
11.22 The Commission believes that it is prudent for the three ADCs to proactively
limit recruitment of new officers and staff unless there is an overriding
consideration, and that such recruitment should be limited to purely
technical or specialised posts that cannot be discharged by the existing
officers and staff. Recruitment of lower-level staff whose functions appear
to be dispensable for the Councils, such as Peon/Chowkidar/Sweeper,
LDC, UDC, Drivers, and so on, may be prohibited for at least the next five
years.
(para 5.165)
11.23 With a view to rationalise the expanding salary expenditure, each ADC may
form a Study Group with specific terms of reference as shown below and
act upon the findings and recommendations of the Study Group
expeditiously:
a) to critically assess the availability of manpower in various

departments vis-à-vis the functions discharged;
b) to identify redundant or surplus staff in certain departments and
suggest measures for re-deployment of such surplus staff to other
departments on the basis of functional requirements;
c) to identify certain Group ‘C’ and Group ‘D’ posts suitable for
outsourcing to manpower agencies;
d) to identify redundant posts that can either be abolished or be
declared as withering posts;
e) to identify technical or specialised posts that need to be filled up in
the next three to five years whose services are of utmost importance,
limiting such proposals for recruitment to not more than 15-20 in a
financial year.
(para 5.166)
Finances of rural local bodies
11.24 The projection of the own source revenues of village councils is a difficult
one considering the lack of credible fiscal data over the years. However, we
proceed to forecast the own source revenues largely on the basis of the data
furnished by the village councils themselves although there may be certain
inconsistencies in the data. We assume that the data shows the trends in
generation of own source revenues across the more than 800 village
councils within the State. In the meantime, we have recommended
collection of property tax by village councils from the financial year 2024-
25 onwards since the same will go a long way in augmenting the own source
~ 357 ~
__________________________________________________________________________________
revenues of the village councils. The own source revenues of the village
councils are therefore, projected at table 6.9
(para 6.39, 6.41 & 6.43)
11.25 In order to efficiently deliver the core functions entrusted to the village
councils, the Commission estimates that a sum of ₹900 per capita per year
at the aggregate level will be the minimum essential for the village councils
at the start of the award period of 2021-22. The minimum requirement per
capita per year is proposed to be enhanced by 6% annually up to the final
year of the award period 2025-26 to offset the effect of inflation in delivery
of core services. The revenue expenditure requirement of the rural local
bodies is subsequently arrived at by multiplying the projected non-
municipal population with the sum of ₹900 per capita per year that is
estimated by the Commission to be the minimum essential for seamless
delivery of core services by the rural local bodies at the aggregate level. The
projected revenue expenditure requirement of rural local bodies for the 5
years of the award period are shown at table 6.10.
(para 6.46, 6.48 & 6.49)
11.26 The Commission recommends that initiative be taken by the State

Government in Local Administration Department to reorganise the
assessment and collection of Animal Tax by Village Councils with a view to
enhance the own tax revenue of the Village Councils.
(para 6.55)
11.27 The Commission recommends the levy, collection and appropriation of

property tax by Village Councils as permissible under clause (2) of section
15 of Lushai Hills District (Village Councils) Act, 1953, as amended to
augment their own source revenue starting from the financial year 2024-
25. To fulfil the above target, the State Government in Local Administration
Department shall frame the enabling rules immediately and not later than
the 31st March, 2024.
(para 6.57)
11.28 Collection of fees at varying rates for similar types of services is not
considered appropriate, and thus, the Commission recommends that the
State Government fix a reasonable rate of fees to be collected by Village
Councils for different types of services rendered, such as providing the
recommendation of the Village Council to avail various Government services
such as the issue of Scheduled Tribe Certificates, Residential Certificates,
Income Certificates, Hailing Certificates, Inner Line Permits, Vehicle
Permits, No Objection Certificates for various land revenue certificates, etc.
These fees will indeed form a regular source of own non-tax revenue for
Village Councils.
(para 6.58)
11.29 We recommend that the State Government fix a suitable rate of user charge
to be collected and appropriated by Village Councils, not later than the 31 st
~ 358 ~
__________________________________________________________________________________
March, 2024, from various services such as the supply of drinking water,
the collection and disposal of solid waste, the provision of community
toilets, community markets, etc. These user charges will be an important
source of non-tax revenue for the Village Councils if they are collected
properly.
(para 6.59)
11.30 It is recommended that all the VCs be mandated to maintain uniform

accounting standards prescribed by the State Government in consultation
with the Accountant General. All receipts into the Village Council Fund from
the higher governments in the form of grants, Centrally Sponsored
Schemes, State Government Schemes, own tax sources such as Animal Tax,
Property tax, etc. and own non-tax sources such as fees, user charges, etc.,
and expenditures charged upon the VC account should be clearly reflected
in the Book of Accounts. The Village Councils shall mandatorily submit
their accounts in a specified format to the State Government through the
District Local Administration Officer at the end of every financial year.
Maintenance and submission of accounts to the District Local
Administration Officer shall be pre-requisite for release of grants
recommended by the State Finance Commission. The State Government
shall compile and tabulate the financial information for further publication
in the form of the Annual Finance of the Village Councils. This will fill data
gaps on local rural finance to a great extent.
(para 6.60)
11.31 We recommend maintenance and submission of an Asset Register by all the

Village Councils at the end of every financial year capturing the basic details
of any assets created in the village using the State and Central funding
supports, and to make it available whenever the situation demands further
intervention. The format for the Asset Register shall be prepared by the
Local Administration Department in consultation with Rural Development
Department, Urban Development & Poverty Alleviation Department,
Finance Department and any other concerned Departments, if necessary,
before the 31st March, 2024. Maintenance and submission of an Asset
Register by the Village Councils at the end of every financial year shall be a
pre-requisite condition to avail grants recommended by the State Finance
Commission from the year 2024-25 onwards.
(para 6.61)
11.32 We recommend that a State Finance Commission Cell be established by the

State Government in Finance Department to coordinate the collection and
compilation of local body finances and other data. The cell will contribute
to closing the data gap on local finances and providing future Finance
Commissions with reliable data.
(para 6.62)
~ 359 ~
__________________________________________________________________________________
Finances of urban local bodies
11.33 The tax and non-tax revenues of the AMC are projected using the ARIMA
model for the 5 years of the award period while estimation of own source
revenues of LMC is made under the assumption that it will mobilise revenue
from sources as the AMC does. The LMC is projected to gradually reaches
the level of the AMC in terms of revenue collection by the year 2024-25. The
projections are shown in Table 7.15.
(para 7.42 and 7.43)
11.34 In order to efficiently deliver the core civic functions entrusted to the
municipalities, the Commission estimates that a sum of ₹1300 per capita
per year at the aggregate level will be the minimum essential for the
municipalities at the start of the award period of 2021-22. The minimum
requirement per capita per year is proposed to be enhanced by 6% annually
up to the final year of the award period 2025-26 to offset the effect of
inflation in delivery of core civic services. The revenue expenditure
requirement of the municipalities is subsequently arrived at by multiplying
the projected municipal population with the sum of ₹1300 per capita per
year that is estimated by the Commission to be the minimum essential for
seamless delivery of core civic services by the municipalities at the aggregate
level. The projections of revenue expenditures are shown at table 7.16
(para 7.45, 7.47 & 7.48)
11.35 The Commission recommends that the base of property tax be enhanced by
enabling the municipal property tax levy on vacant lands as permissible
under section 214 of the Mizoram Municipalities Act, 2007 as amended and
following the procedure for valuation prescribed in the Mizoram
Municipalities (Property Tax) Management Rules, 2014. The State
Government may actively consider lifting the suspension order to enable the
Municipalities to generate more own source revenue.
(para 7.54)
11.36 To make property tax resilient to the economic development with the ever-
expanding construction sector in the State, we recommend that the State
Government may, on the recommendation of the State Property Tax Board,
revise the minimum floor rate of property tax at regular intervals to bring it
as closely as possible to the market prices of properties.
(para 7.55)
11.37 In order to ensure greater financial autonomy for the urban local bodies, we
recommend levy of Entertainment Tax by Municipalities within their
respective jurisdiction by inserting an enabling provision through an
amendment in the Mizoram Municipalities Act, 2007 as amended.
(para 7.57)
~ 360 ~
__________________________________________________________________________________
11.38 The Commission suggests that rates for user charges may be fixed at
regular intervals and be linked with the cost-of-living index, at least
partially, to make it progressive in the face of price escalations.
(para 7.59)
11.39 It is recommended that the Corporation invest its idle funds, not meant for
immediate use, in assets with better returns as it is permissible under the
Municipality Act. The scope of investing the funds in short-term fixed
government securities, such as Treasury Bills, Sovereign Bonds, etc., may
be looked into to increase interest earnings.
(para 7.60)
11.40 The Commission recommends that the State Government should frame a
suitable expenditure policy with measurable parameters to control
increasing revenue expenditure due to the expansion of the establishment
and administration of the Corporation and to ensure adequate allocation
towards operation & maintenance and capital expenditure for the provision
of quality civic infrastructure and services.
(para 7.62)
11.41 It is recommended that guidelines be laid to regulate the implementation of

schemes and works under the Councillor Ward Development Fund and that
the roles of the Ward Committee and Local Council be defined clearly. The
economic nature of expenditures may also be prescribed to enable accurate
booking of the works/services implemented through CWDF on revenue and
capital heads of the account.
(para 7.64)
Finances of district councils
11.42 It is recommended that each item of tax levy within the District Council be
assigned to the appropriate head of account in the budget books.
Furthermore, the possibility of introducing an entertainment tax and a tax
on the entry of goods into the market may be explored, as well as expediting
the assessment process of taxes on buildings in order to increase the
Council's revenue base.
(para 8.43)

Average (ARIMA) is adopted to forecast own tax revenue (OTR) and own non-
tax revenues of the three District Councils for the 5 years of the award
period as shown in table 8.45
(para 8.98)
11.44 We understand that the district councils have certain committed revenue
expenditures viz., salaries and allowances, wages, remuneration of village
~ 361 ~
__________________________________________________________________________________
council members, pensions and pension contribution under the new

pension scheme. While accommodating the committed expenditures of the
district councils and making room for developmental expenditures, the
Commission projects the revenue expenditures of the three district councils
as shown in table 8.46
(para 8.99)
11.45 To boost the District Councils' own revenue receipts, the Commission
recommends that the District Councils revise the rates of professions tax
within the ceiling limit imposed by the Constitution for different classes of
persons on the lines of the rates fixed by the State Government in the year
2011 not later than the 31st March, 2024.
(para 8.110)
11.46 It is recommended that the District Councils should review rates of taxes
and non-tax revenues at regular intervals of every three years as a measure
of fiscal prudence and efforts on their part.
(para 8.111)
11.47 Considering that Property Tax is a buoyant source of revenue for local
bodies the world over and in view of an enabling provision in paragraph 8(2)
of the Sixth Schedule to the Constitution, the Commission recommends
that an appropriate regulation for the levy and collection of Property Tax be
framed by all the District Councils not later than the 31st March, 2024 on
the lines of the Property Tax laws for urban local bodies being in force under
the State Government.
(para 8.113)
11.48 With a view to augment the own source revenue of the District Councils,
the Commission recommends that the Indian Stamp (Mizoram Amendment)
Act, 2016, which extends to the jurisdiction of the District Councils too, be
implemented in letter and spirit for the levy, collection, and appropriation
of Stamp Duty by the District Councils. Further, the Registration Act, 1908,
should also be extended to the District Councils through a suitable
amendment to the Mizoram Registration Rules, 2015, for the levying,
collection, and appropriation of registration fees by the District Councils.
(para 8.115)
11.49 The Commission recommends that suitable amendments to the rules be

made by the State Government as per the Government notification of 2011
with a view to enabling the District Councils to levy, collect, and appropriate
motor vehicles tax within their respective jurisdictions.
(para 8.116)
~ 362 ~
__________________________________________________________________________________
11.50 It is recommended that the following taxes be introduced in the three

District Councils in Mizoram viz. (1) tax on entry of goods into the market;
(2) entertainment taxes; and (3) animal tax.
(para 8.117)
11.51 The Commission recommends that expenditure control legislation may be

made by the District Councils with a clear set of fiscal rules determining
realistic short-term, medium-term, and long-term targets for fiscal
parameters to ensure transparency and accountability on the allocation of
public resources.
(para 8.118)
11.52 The Commission recommends that a uniform accounting format for the
budget be adopted in all the District Councils in consultation with the
Accountant General of Mizoram. At the same time, devolution of funds to
District Councils may be accorded in the detailed heads (share of tax
revenues, GIA, etc.) of the State Government budget too.
(para 8.119)
Assessments of gaps in financial resources and scheme of fiscal devolution
11.53 The pre-devolution revenue gap for the rural local bodies is assessed by
deducting the rural local body grants from 15th Finance Commission along
with the own source revenues of the rural local bodies from the projected
revenue expenditure requirements and shown in table 9.1.
(para 9.5)
11.54 The pre-devolution revenue gap for the urban local bodies is assessed by
deducting the urban local body grants from 15th Finance Commission along
with the own source revenues of the urban local bodies from the projected
revenue expenditure requirements and shown in table 9.2.
(para 9.6)
11.55 The pre-devolution revenue gap for the autonomous district councils is
assessed by deducting the own source revenues of the district councils
along with grants, if any, from the 15th Finance Commission from the
projected revenue expenditure requirements and shown in table 9.3.
(para 9.7)
11.56 The divisible pool for devolution will comprise taxes, duties, tolls, and fees
that fall within the own tax revenue of the State government.
(para 9.12)
11.57 The Commission opines that the constitutional provision has to be followed
in determining the quantum of devolution by applying the “net proceeds"
~ 363 ~
__________________________________________________________________________________
i.e., proceeds of the state’s own tax revenue minus the cost of collection of
such taxes.
(para 9.13)
11.58 The Commission consciously recommends a vertical devolution of 42

percent of the net proceeds of the State's own tax revenue for the award
period of 2021-22 to 2025-26, taking into account the need to give local
bodies financial autonomy to perform tasks similar to those of other local
bodies created under Part IX (Panchayats) and Part IX-A (Municipalities) of
the Constitution while, at the same time, understanding the State
government's steadily growing committed expenditure requirements.
(para 9.21)
11.59 The quantum of vertical devolution for the award period is projected as
shown in table 9.8.
(para 9.22)
11.60 In the 1st level of horizontal devolution, the Commission first attempts to fill
100% of the pre-devolution revenue gap of the rural local bodies and urban
local bodies in aggregate from the divisible pool so devolved to the local
bodies. The balance from the vertical devolution will be used to fill the pre-
devolution revenue gap of the ADCs to the extent possible. The revenue
deficit that still exists with the ADCs after tax devolution from the divisible
pool is proposed to be filled up from post devolution revenue deficit grants
for all the ADCs. The assessed pre-devolution revenue gaps for the local
bodies in aggregate and the method of filling up the same through the tax
devolution in the 1st level of horizontal devolution is shown at table 9.9
(para 9.24 & 9.25)
11.61 The 2nd level of horizontal devolution revolves around distribution of the tax
devolution between the Village Councils across the 11 districts in two stages
i.e., distribution of tax devolution district-wise in the 1st stage and
distribution between Village Councils within a district in the 2 nd stage of
horizontal devolution on the basis of the principles of need and equity. In
the 1st stage of the 2nd level of horizontal devolution, we have used three
criteria, representing the needs of the district (i.e., non-municipal
population with 60% weightage and non-municipal area with 30%
weightage) along with equity criteria (i.e., deprivation index derived from
gaps in 20 basic facilities as per the Mission Antyodaya Survey, 2020 with
a weightage of 10%) for horizontal distribution of tax devolution across the
districts. The inter se shares for village councils district wise in the 1st stage
of the 2nd level of horizontal devolution are shown in tables 9.10 and 9.11.
(para 9.26, 9.27, 9.33 & 9.34)
~ 364 ~
__________________________________________________________________________________
11.62 The 15th Finance Commission, in its report in paragraph 7.67,

recommended the distribution of rural local body grants between the
different entities on the basis of population and area in the ratio of 90:10
OR as per the accepted recommendation of the latest State Finance
Commission. On the basis of the above recommendation, the Commission
determines the share of village councils district-wise upon the rural local
body grants duly recommended by the 15th Finance Commission following
the inter se share of districts in table 9.13.
(para 9.36)
11.63 In the 2nd stage of the 2nd level of horizontal devolution, the Commission
distributes the tax devolution between village councils within a district. We
have used two criteria, representing the needs of the village (i.e., population
of a village with 80% weightage), along with equity criteria (i.e., development
distance determined from the ranking scores of village under Mission
Antyodaya Survey, 2020 carrying 20% weightage), for the horizontal
distribution of tax devolution across the village councils in a district.
Population in this context is the population according to the data in Mission
Antyodaya, 2020, slightly diverging from our terms of reference since it has
been observed that several village councils have been created either by the
State Government or the concerned autonomous district councils
subsequent to the publication of the Census, 2011, thus making it difficult
to assess the population of the parent village and the new village.
(para 9.37)
11.64 The inter se shares of villages within a district as per the 2nd stage of 2nd
level of horizontal devolution pertaining to horizontal distribution of tax
devolutions are presented district-wise in Annexures 9.3 to 9.13.
(para 9.41)
11.65 Following the inter se share of villages arrived at in the 2nd stage of the 2nd
level of horizontal devolutions, the amount of tax devolution as
recommended by the 2nd State Finance Commission for all the rural local
bodies during the award period of 2021-22 up to 2025-26 are presented in
the Annexures 9.14 to 9.24.
(para 9.43)

recommended the distribution of rural local body grants between the
different entities on the basis of population and area in the ratio of 90:10 or
as per the accepted recommendation of the latest State Finance
Commission. On the basis of the above recommendation, the Commission
has already determined the share of village councils district-wise upon the
rural local body grants duly recommended by the 15th Finance Commission
at table 9.10. The inter se shares of village councils upon the rural local
body grants, according to the 2nd stage of the 2nd level of horizontal
~ 365 ~
__________________________________________________________________________________
devolutions, have been determined for each village council and presented
at Annexures 9.25 to 9.35.
(para 9.44)
11.67 Village councils shall utilise their receipts of tax devolution primarily for
creation of capital assets, except for the remuneration of the members of
Village Councils as also the cost of office expenses, preferably from the plan
prepared by the Gram Sabha under the latest Gram Panchayat
Development Plan (GPDP).
(para 9.45)
11.68 The 3rd level of horizontal devolution pertains to distribution of the tax
devolution between the two urban local bodies (viz., Aizawl Municipal
Corporation and Lunglei Municipal Council) in two stages i.e., distribution
of tax devolution between the urban local bodies in the 1 st stage and
distribution between Local Councils within an urban local body in the 2 nd
stage of horizontal devolution on the basis of the principles of need and
equity. In the 1st stage of the 3rd level of horizontal devolution, we have used
three criteria, representing the needs of the urban local bodies (i.e.,
municipal population carrying 60% weightage and municipal area with 30%
weightage) along with equity criteria (i.e., households living below poverty
line on the basis of the BPL Baseline Survey of Directorate of Economic &
Statistics having 10% weightage) for horizontal distribution of tax
devolution across the urban local bodies. The 1st stage of the 3rd level
horizontal devolution between the urban local bodies is presented at table
9.14.
(para 9.46, 9.47 & 9.50)
11.69 Following the inter se shares arrived at for urban local bodies, the amount
of tax devolution as recommended by the 2nd State Finance Commission
during its award period is presented in table 9.15.
(para 9.51)

recommended the intra-city distribution of urban local body grants on the
basis of recommendations of the latest State Finance Commission. In case
the SFC recommendation is not available for distribution, allocations
should be based on population and area in the ratio of 90:10. On the
strength of the above recommendation, the Commission determines the
share of each municipality upon the urban local body grants duly
recommended by the 15th Finance Commission as shown in table 9.16.
(para 9.52)
11.71 The Commission deems it appropriate to further devolve a certain

percentage of the tax devolution devolved upon the urban local bodies to
their respective Local Councils. Thus, we recommend that the
~ 366 ~
__________________________________________________________________________________
Municipalities devolve 20% of the tax devolution from the State Government
to the local councils following the inter se shares arrived at for the respective
local councils in the 2nd stage of the 3rd level of horizontal devolution.
(para 9.53)
11.72 In the 2nd stage of the 3rd level of horizontal devolution, the Commission
distributes the tax devolution between Local Councils within a municipality.
We have used two criteria, representing the needs of the village (i.e.,
population of the local council having 80% weightage), along with equity
criteria (i.e., households living below poverty line with 20% weightage), for
the horizontal distribution of tax devolution across the Local Councils
within a municipality. The inter se shares of local councils as per the 2nd
stage of 3rd level horizontal devolution within a municipality is determined
on the basis of the above criteria and presented in tables 9.17 and 9.18.
(para 9.54 & 9.56)
11.73 The inter se shares of local councils upon 20% of the State tax devolution
have been determined for each local council according to the criteria in the
2nd stage of the 3rd level of horizontal devolution and presented municipality-
wise at Annexures 9.36 (Aizawl municipality) and 9.37 (Lunglei
municipality).
(para 9.58)
11.74 The municipalities and the local councils shall utilise the receipts from tax
devolution primarily for creation of capital assets within the functions
delegated to the municipalities under the 12th Schedule to the Constitution
of India.
(para 9.59)
11.75 The 4th level of horizontal devolution revolves around distribution of the tax
devolution between the three autonomous district councils on the basis of
the principles of need, performance and equity. We have used four criteria,
two of them representing the needs of the autonomous district councils (i.e.,
population with 40% weightage and area having 30% weightage),
performance criteria (i.e., revenue efforts with 15% weightage) and equity
criteria (i.e., deprivation index carrying 15% weightage) for horizontal
distribution of tax devolution across the district councils.
(para 9.60)
11.76 The inter se shares as per the 4th level of horizontal devolution between the
autonomous district councils is determined as shown in table 9.19.
(para 9.66)
~ 367 ~
__________________________________________________________________________________
11.77 Following the inter se shares arrived at for autonomous district councils in
table 9.19, the amount of tax devolution as recommended by the 2nd State
Finance Commission during its award period is presented in table 9.20.
(para 9.67)
11.78 In order to empower the district councils and enhance their level of
administration within the powers delegated to them under the Sixth
Schedule of the Constitution and the functions entrusted to them by the
State Government from time to time, the Commission deems it appropriate
to recommend post-devolution revenue deficit grants to the three
autonomous district councils within its award period of 5 years as follows
without any conditions attached to its release as per the figures in table
9.21.
(para 9.70)
11.79 The Commission recommends performance grants to the rural local bodies
and urban local bodies from the financial year 2023-24 up to the end of the
award period of 2025-26 subject to the fulfilment of certain performance
conditions on the part of the village councils and municipalities with the
amount as shown in table 9.23.
(para 9.71 & 9.72)
11.80 In order to avail the performance grants, the Commission recommends the
fulfilment of the following performance conditions by the rural local bodies,
viz.
i) Receipts from collection of own non-tax revenues in the previous
financial year (including collection of user charges from assets
created under Central or State Government schemes) to be not less
than 15 times the population of the village, with population figures
as reported in the Mission Antyodaya Survey, 2020, to be applied.
For instance, the population of Bulfekzawl village in Champhai
district as per the Mission Antyodaya Survey, 2020 stands at 429. To
avail performance grants in the year 2023-24, the village has to
collect non-tax revenues not less than 429 x 15 = ₹6,435/- in the
previous financial year of 2022-23.
ii) Increase in collection of own non-tax revenues from the village at

least by 6% annually. This condition will be applicable from the year
2024-25 onwards. For instance, in order to avail performance grants
in the year 2024-25, Bulfekzawl village in Champhai district has to
increase their collection of own non-tax revenues by 6% from the
previous year of 2023-24.
iii) Collection of property tax from at least 90% of the taxable units in a
village, as and when the rules are framed by the State Government.
~ 368 ~
__________________________________________________________________________________
iv) Maintenance and submission of an Asset Register as prescribed by

the State Government in Local Administration Department before the
end of every financial year. This condition will be applicable for
availing performance grants from the year 2024-25.
i) Maintenance of accounts as prescribed by the State government and

submission of updated accounts to the District Local Administration
Officer/Local Administration Officer. This condition will be applicable
for availing performance grants from the year 2025-26.
(para 9.73)
11.81 Performance grants to rural local bodies shall be strictly utilised for creation
of capital assets only, preferably from the plan prepared by the Gram Sabha
under the latest Gram Panchayat Development Plan (GPDP).
(para 9.76)
11.82 The Commission deems it appropriate to recommend different performance

conditions to be fulfilled by the municipalities at Aizawl and Lunglei to avail
performance grants. The conditions for availing performance grants for
Aizawl Municipal Corporation are as follows:
i) Capital expenditure not less than 40% of the total expenditure in

the previous financial year.
ii) Collection of property tax from at least 90% of the surveyed taxable
units in a municipal area in the previous financial year.
iii) Ensure segregation of wastes at source generated by waste

generators within the municipality into three separate streams, viz.,
bio-degradable, non-biodegradable, and domestic hazardous
wastes, and hand them over to the local level waste collectors as per
Rule 4 of the Solid Waste Management Rules, 2016.
iv) Maintenance of accounts as per the National Municipal Accounts

Manual.
(para 9.77)
11.83 The conditions for availing performance grants in respect of the Lunglei
Municipal Council are as follows:
i) Frame bye-laws on solid waste management as per rule 15(e) of the

Solid Waste Management Rules, 2016 read with section 371 of the
Mizoram Municipalities Act, 2007 as amended not later than the
29th February, 2024.
~ 369 ~
__________________________________________________________________________________
ii) Resolution of the Board of Councillors determining to levy the

property tax as per section 210 of the Mizoram Municipalities Act,
2007 as amended not later than the 29th February, 2024.
iii) Collection of property tax from at least 90% of the surveyed taxable
units in a municipal area in the previous financial year. This
condition shall be applicable for availing performance grants from
the year 2025-26
iv) Ensure segregation of wastes at source generated by waste

generators within the municipality into three separate streams, viz.,
bio-degradable, non-biodegradable, and domestic hazardous
wastes, and hand them over to the local level waste collectors as per
Rule 4 of the Solid Waste Management Rules, 2016. This condition
shall be applicable for availing performance grants from the year
2024-25.
(para 9.78)
11.84 Performance grants for urban local bodies shall be strictly utilised for
creation of capital assets within the functions delegated to the
municipalities from the Twelfth Schedule to the Constitution only.
(para 9.80)
11.85 The Commission also recognises the need to incentivise the autonomous
district councils to enhance their generation of own source revenues since
they are heavily dependent upon transfers from the State Government with
almost no regular inflows from the Central Government. Besides, the
Commission also understands the need of the district councils to augment
their capital expenditure within the functions delegated to them by the State
Government from time to time. The quantum of performance grants for the
autonomous district councils are determined as shown in table 9.23.
(para 9.81 & 9.82).
11.86 With regard to the performance grants for district councils, the Commission
recommends fulfilment of the following performance conditions by the
district councils to avail the grants, viz.
i) To generate own revenue receipts, inclusive of own tax revenue and

own non-tax revenue, as projected by the Commission in the
previous financial year, i.e., to avail performance grants for the year
2023-24, a district council must generate own revenue receipts as
projected by the Commission for the previous financial year of 2022-
23 and so on.
ii) Levy and collection of property tax from at least 90% of the taxable
units in the previous financial year. This condition shall become
~ 370 ~
__________________________________________________________________________________
applicable for district councils for the year 2025-26. In other words,
to avail the performance grant in the year 2025-26, a district
council must levy and collect property tax from at least 90% of the
taxable units in the previous financial year of 2024-25.
iii) To finalise the accounts of the district council within four months
from the close of the previous financial year and upload the
financial statement in the respective website of the district councils
for the sake of transparency. This condition shall become applicable
for claiming performance grants from the year 2024-25 onwards.
For instance, to avail performance grant for the year 2024-25, a
district council must finalise their accounts for the year 2023-24
not later than 31st July, 2024.
iv) To constitute the Study Group as recommended in paragraph 5.166

for rationalising the expanding salary expenditures to avail
performance grant from the year 2024-25 not later than 31st March,
2024. Subsequently, to avail the performance grant for the year
2025-26, a district council must furnish the action taken report
upon the recommendation of the Study Group not later than the
31st March, 2025.
(para 9.83)
11.87 Since we are recommending global sharing of the net proceeds of all taxes,
duties and fees levied and collected by the State government with all the
local bodies, separate assignment of taxes, duties, tolls and fees with the
rural local bodies, urban local bodies or the autonomous district councils
is not recommended by the Commission.
(para 9.85)
11.88 We recommend that separate object heads for tax devolution to local bodies
viz., village councils, municipalities and autonomous district councils be
opened under suitable minor heads in addition to the existing object head
for grants-in-aid, with no further classification of grants-in-aid into salary
and non-salary components.
(para 9.86)
General observations and other issues in the terms of reference
11.89 We urge the DDMAs to consider releasing assistance as per norms to the
village level disaster management committees or local level disaster
management committees, as the case may be, depending upon the nature
of assistance and the type of disaster from the State Disaster Response
Fund lying at their disposal.
(para 10.10)
~ 371 ~
__________________________________________________________________________________
11.90 In view of the substantial amount of funds at the disposal of the respective
DDMAs as can be seen in table 10.1, we find that separate grants-in-aid for
the purpose of disaster management at the village or local level may not be
recommended from the Consolidated Fund of Mizoram. We, however,
recommend that village councils, municipalities and autonomous district
councils can utilise a portion of the tax devolutions, not more than 20% in
a year, for the purpose of strengthening disaster mitigation efforts.
(para 10.11)
11.91 Considering the significant role of the VLDMCs/ LLDMCs and the need to
enhance their capacity on a regular basis, the Commission recommends
that the DDMAs organise capacity-building programmes for the members
of village-level disaster management committees and the different disaster
management teams at least on a yearly basis to enable them to discharge
their duties effectively in the various stages of disaster management.
(para 10.12)
11.92 As the procurement of essential search, rescue and evacuation equipment

including communication equipment, etc. for response to disaster is one of
the permissible items for expenditure under SDRF, we recommend that
necessary logistical support as considered necessary by the respective
DDMAs be provided to the Village Level Disaster Management Committees/
Local Level Disaster Management Committees.
(para 10.13)
11.93 From a broad understanding of the schemes implemented by the

Central/State Governments and the capacity of the local bodies along with
the effectiveness of people’s participation, we consider that the intervention
of the rural and urban local bodies along the following lines can be effective
in management of environment and tackling the effects of climate change
at the local level:
i) With the goal of sustainable agriculture in view, local bodies may take
initiative for construction of hill slope terraces for conservation of
moisture and cultivation of food grains, vegetables, pulses and oilseed
crops. Promoting wet rice cultivation (WRC) on available lands having
0-10% slope and improvement of existing WRCs is another crucial
intervention. Promotion of organic farming through usage of compost
and vermi compost will also be very important. All these strategies will
help tackle the perennial problem of jhum cultivation.
ii) Ecological restoration in terms of reforestation and afforestation of

degraded lands will reduce the ill effect of climate change. The local
bodies can play a pivotal role in the process of ecological restoration
through social forestry, agro-forestry, farm forestry, reforestation of
urban lands and soil moisture conservation measures.
~ 372 ~
__________________________________________________________________________________
iii) Promotion of clean energy in rural and urban areas, especially through
increased adoption of solar energy for the purpose of home lighting,
water heating, public lighting systems, etc. Local bodies will be
particularly helpful in raising awareness among citizens about the
need for energy efficiency measures, the benefits of energy-efficient
star-rated devices, their durability, and the application of energy-
efficient devices in infrastructure projects.
iv) Conservation of water through the construction of water harvesting

structures, dug-out ponds, farm ponds, terraces, etc. wherever
feasible since surface runoff of water is very high in a hilly area like
Mizoram. Local bodies can intervene in water body conservation for
the fishery sector and the establishment of fishery units in reservoirs
and riverine areas.
v) As per Section 41(1) of the Biodiversity Act, 2022, every local body is
required to constitute a Biodiversity Management Committee (BMC)
within its area for the purpose of promoting conservation, sustainable
use, and documentation of biological diversity, including the
preservation of habitats, conservation of land races, folk varieties and
cultivars, domesticated stocks and breeds of animals and
microorganisms, and the chronicling of knowledge relating to
biological diversity. As per Section 41(2), the National Biodiversity
Authority and the State Biodiversity Boards shall consult the
Biodiversity Management Committees before taking any decision
relating to the use of biological resources and the knowledge
associated with such resources occurring within the territorial
jurisdiction of the Biodiversity Management Committee. As per Section
41(3), the Biodiversity Management Committees may levy charges by
way of collection fees from any person for accessing or collecting any
biological resources for commercial purposes from areas falling within
their territorial jurisdiction. As per the information furnished by the
Local Administration Department, 534 biodiversity management
committees have been formed so far across the state. The local
biodiversity management committees can play a significant role in
biodiversity conservation, provided they follow the Act in letter and
spirit.
vi) Prevention of forest fires within the territorial limits of the respective
local bodies since it not only deprives rare biodiversity species of their
habitat but often goes out of control, setting even unintended
territories on fire.
(para 10.30)
~ 373 ~
__________________________________________________________________________________
11.94 We recommend that village councils, municipalities and autonomous

district councils can utilise a portion of the tax devolutions, not more than
10% in a year, for the purpose of forest conservation, maintenance of
ecological balance and tackling issues of climate change, if considered
necessary.
(para 10.31)
11.95 We urge the Director of Local Fund Audit to expedite the process of auditing
the accounts of the village councils, municipalities and the autonomous
district councils for the remaining period with the auditors available at their
disposal to help ensure that expenditures are incurred essentially for the
purpose for which they were sanctioned. In case the number of auditors at
their disposal is insufficient, it may bring the issue for consideration of the
State Government in Finance Department and seek the services of
experienced auditors who have retired from government service by re-
employing them on contract at a fixed remuneration since such retired
officials below 65 years of age can largely perform such statutory duties
efficiently.
(para 10.34)
11.96 We also urge the Accountant General, Mizoram to expedite the process of
auditing the accounts of the three autonomous district councils since a
significantly large chunk of public funds have been utilised year after year
in the administration of the councils. Timely auditing will also ensure that
the authorities in the district councils are prudent while spending public
money and remain cautious while maintaining integrity and uprightness in
financial transactions.
(para 10.35)
11.97 We recommend that social audits of works implemented by local bodies with
funds received from tax devolutions and grants-in-aid from the State
government be undertaken through an independent social audit
organisation, like the Social Audit Unit for auditing of Centrally Sponsored
Schemes under Ministry of Rural Development, with a view to significantly
improving the quality of public expenditure.
(para 10.36)
11.98 In a bid to improve transparency and enhance the accountability of the local
bodies, we also suggest that signboards be erected/installed on every work
executed under funds received from tax devolutions or grants-in-aid from
the State government, similar to the signboards erected by Village
Employment Councils while undertaking works under MGNREGS, with the
following details:
i) Name of work:
ii) Sanctioned amount:
~ 374 ~
__________________________________________________________________________________
iii) Source of fund:

iv) Date of start of work:
v) Date of completion of work:
vi) Unit of measurement (dimensions/area/length, etc.):
vii) Name of implementing agency:
viii) Name and contact no. of Local Body Ombudsman:
(para 10.38)
11.99 To ensure regular and periodic monitoring and appraisal of works executed
by local bodies, we also suggest that works executed by local bodies with
funds from tax devolutions and grant-in-aid from the state government be
included as one of the agenda items of the District Development
Coordination and Monitoring Committee (DISHA) formed by the Ministry of
Rural Development, Government of India, to undertake monitoring of works
executed under various centrally sponsored schemes on a quarterly basis
district-wise under the chairmanship of the hon’ble Member of Parliament
(Lok Sabha) with the hon’ble Member of Parliament (Rajya Sabha) as the
co-chairman.
(para 10.39)
11.100 We recommend that the State Government follow the constitutional and
statutory provisions regarding the timely constitution of a State Finance
Commission in letter and spirit and proactively take steps for the
constitution of the 3rd State Finance Commission in the overall interest of
the local governments in Mizoram.
(para 10.47)
11.101 We recommend that a permanent cell of the State Finance Commission

headed by a suitable officer be established in the Finance Department to
closely monitor the implementation of the accepted recommendations of the
State Finance Commission by various stakeholders and obtain crucial
information pertaining to the finances of the local bodies regularly, at least
on a quarterly basis.
(para 10.50)
11.102 We consider it appropriate to lay down the broad format for the collection
of reliable databases by the proposed State Finance Commission Cell in the
Finance Department from the local bodies, right from the autonomous
district councils to the more than 800 village councils across the state.
Information may be collected starting from the year 2021–22, i.e., the
starting year of the award period of the 2nd State Finance Commission of
Mizoram. The suggested formats for the collection of information from the
autonomous district councils are enclosed at Annexures 10.1 to 10.6, the
formats for municipalities at Annexures 10.7 to 10.11, and the formats for
village councils are enclosed at Annexures 10.12 and 10.13.
(para 10.51)
~ 375 ~
__________________________________________________________________________________
11.103 We feel that the subsequent Union Finance Commissions should give due
consideration to grants to the autonomous district councils under the Sixth
Schedule for upgradation of administration and development in order to
bring them on par with other areas, although the terms of reference may
not have specific provisions pertaining to grants for the Sixth Schedule
areas, on account of the following reasons:
i) The autonomous district councils are indeed duly constituted

constitutional bodies whose territorial area finds mention in the
Sixth Schedule to the Constitution of India.
ii) Grants are due to every resident of India, irrespective of the nature
of the authorities governing the area.
iii) The quantum of assistance provided by the Union Government to
the Sixth Schedule areas under the proviso to article 275(1) of the
Constitution has been very limited.
iv) The tribal areas in the Sixth Schedule are the areas with the most
pressing need for assistance, on account of their geographical
disabilities and comparatively lower level of development.
v) The State government can hardly finance the developmental and
capital expenditure requirements of the district councils since a
substantial amount of transfers from the State has to go towards
meeting the committed revenue expenditures, as highlighted in
Table 8.1 of this report.
(para 10.56)
11.104 We recommend that the State government constitute a High Level

Monitoring Committee under the chairmanship of the Chief Secretary to
undertake periodic monitoring of the implementation of the accepted
recommendations of the Commission with representatives from all
concerned stakeholders. The Principal Secretary/Secretary of Finance
Department will be the Member Secretary of the committee, while
secretarial assistance can be provided by Finance Department (Finance
Commission and Monitoring Cell) until a separate State Finance
Commission Cell, as recommended in para10.50, is established by the State
government.
(para 10.57)
(LALMALSAWMA) (F. VANLALRUATA)

Member Secretary Chairman
Second State Finance Commission of Mizoram
Aizawl, the 20th July, 2023
~ 376 ~
ANNEXURES
~ 377 ~
__________________________________________________________________________________
Annexure 1.1
(Para 1.5)
The Mizoram Gazette

EXTRA ORDINARY
Published by Authority
RNI No. 27009/1973 Postal Regn. No. NE-313(MZ) 2006-2008 Re. 2/- per issue
VOL – XXXIX Aizawl, Thursday 18.11.2010 Kartika 27, S.E. 1932, Issue No. 458
NOTIFICATION
No. H.12018/21l/10-LJD)/Pt the 12thNovember, 2010. The following Act of

theMizoram Legislative Assembly, which received the assent of the Governor
ofMizoramis hereby published for general information.
The Mizoram Finance Commission Act, 2010 (Act No. 17 of 2010)
(Received the assent of the Governor of Mizoram on 26.10.2010.)
Sd/- P. Chakraborty
Commissioner/Secretary to the Govt, of
Mizoram.
~ 378 ~
Annexures
__________________________________________________________________________________
AN
ACT
to constitute a State Finance Commission and, to determine the qualifications

requisite for appointment as members of the Finance Commission and the manner
in which they shall be selected, and to prescribe their powers.
Whereas it is expedient to make all the local bodies of the state to have
financial autonomy to further democratic decentralization for which constitution of
a state finance commission to consider and recommend the principle which will
govern the distribution of revenue between the state government and the local
bodies is necessary;
And whereas Part IX exempted the state of Mizoram from its purview, and
whereas Part IX-A of the Constitution of India exempted the tribal areas of the state
of Mizoram from its purview;
And whereas it is expedient to constitute a single State Finance Commission

for all the local bodies which will also be suitable to local bodies exempted by the
aforementioned provisions of the Constitution on the basis of the existing
administrative arrangements to enable all the local bodies to have financial
autonomy to perform functions analogous to the functions of other local bodies
constituted under Constitution Part IX and Part IX-A while retaining the distinctive
tribal identity protected by the Sixth Schedule to the Constitution of India which is
foundational to the local bodies of the state;
It is enacted by the Legislature of the State of Mizoram in the Sixty first Year
of the Republic of India as follows:-
1. Short title.-
(1) This Act maybe called the Mizoram Finance Commission Act, 2010.
(2) It shall come into force with immediate effect.
2. Definitions.-
(a) “Commission” means the Mizoram Finance Commission constituted by the

Governor pursuant to sub-section (1) of section 3 of this Act.
(b) “Governor” means the Governor of Mizoram;
(c) “members” of the Commission means members of the Mizoram Finance
Commission including the chairperson, other members, and include the
member-secretary appointed by the Governor pursuant to sub-section (1) of
section 3 of this Act;
(d) “state” means the state of Mizoram;
(e) “State Government” means the Government of Mizoram;
(f) “State Legislative” means the Mizoram State Legislative Assembly
~ 379 ~
__________________________________________________________________________________
3. Constitution of a State Finance Commission.-
(1) The Governor of Mizoram shall, as soon as may be within one year from the
commencement of this Act, and thereafter at the expiry of every fifth year,
constitute a body to be known as the Mizoram Finance Commission to review the
financial position of the Village Councils, Municipalities or Municipal Boards
notwithstanding any term by which urban local bodies are called in the state,
and also the autonomous district councils as the governor may deem it
neccessary and to make recommendations to the Governor as to-
(a) The principles which should govern-
(i) The distribution between the state and the Village

Council/Municipalities/Municipal Boards/the Autonomous district
councils of the net proceeds of the taxes, duties, tolls and fees leviable by
the State, which may be divided between them to enable these bodies to
perform the functions assigned, and which may be assigned, to it under
any laws in force or orders, and the allocation between the Village
Councils, municipalities and the autonomous district councils at the all
levels of their respective shares of such proceeds;
assigned to, or appropriated by, the Village Councils, the municipalities,
and the autonomous district councils;
(iii) the grant-in-aid to the Village Councils, the municipalities and, the
autonomous district councils from the Consolidated Fund of Mizoram;
(b) The measures needed to improve the financial position of the Village Councils,
the municipalities, and the autonomous district councils;
(c) any other matter referred to the Commission by the Governor in the interests of
sound finances of the Village Councils, municipalities, and the autonomous
district councils.
(2) The Governor shall cause every recommendation made by the Commission
under this section together with an explanatory memorandum as to the action
taken thereon to be laid before the State Legislature
4. The composition and qualifications for appointment as, and the manner of
selection of, members of the Commission.- The Commission shall consist of –
(a) a chairperson who shall be selected from among persons who have had
experience in public affairs;
(b) and the members not exceeding four in numbers who shall be selected from
among persons who-
~ 380 ~
Annexures
__________________________________________________________________________________
(i) have special knowledge of the finances and accounts of Government;

(ii) have had wide experience in financial matters and in administration; or
(iii) have special knowledge of economics.
5. Personal interest to disqualify members.- Before appointing a person to be a

member of the Commission, the Governor shall satisfy himself that that person
will have no such financial or other interest as is likely to affect prejudicially his
functions as a member of the Commission, and the Governor shall also satisfy
himself from time to time with respect to every member of the Commission that
he has no such interest and any person who is, or whom the Governor proposes
to appoint to be, a member of the Commission shall, whenever required by the
Governor to do so, furnish to him such information as the Governor considers
necessary for the performance by him of his duties under this section.
6. Disqualifications for being a member of the Commission.- A person shall be

disqualified for being appointed as, or for being, a member of the Commission.-
(a) if he is of unsound mind
(b) if he is an undischarged insolvent;
(c) if he has been convicted of an offence involving moral turpitude;
(d) if he has such financial or others interest likely to affect prejudicially his
functions as a member of the Commissions.
7. Term of office of members and eligibility for reappointment.- Every member

ofthe Commission shall hold office for such period as may be specified in the
order of the Governor appointing him, but shall be eligible for reappointment;
Provided that he may, by letter addressed to the Governor, resign his office.
8. Conditions of service and salaries and allowances of members.- The

members of the Commission shall render whole-time or part-time service to the
Commission as the Governor may in each case specify, and there shall be paid to
the members of the Commission such fees or salaries and such allowances as
the State Government may, by rules, determine.
9. Procedures and powers of the Commission.-
(1) The Commission shall determine their procedure-
Provided that the Commission may consider for its adoption the template for
reports of the State Finance Commissions recommended by the Thirteenth
Finance Commission of India.
(2) The Commission, in the performance in their functions, shall have all the
powers of a civil court under the Code of Civil Procedure, 1908 (5 of 1908),
while trying a suit in respect of the following matters, namely:-
(a) summoning and enforcing the attendance of witness;

~ 381 ~
__________________________________________________________________________________
(b) requiring the production of any document;

(c) requisitioning any public record from any court or office;
(3) The Commission shall have power to require any person to furnish
information on such points or matters as in the opinion of the Commission
may be useful for, or relevant to, any matter under the consideration of the
Commission and any person so required shall, notwithstanding anything
contained in any law for the time being in force, be deemed to be legally
bound to furnish such information within the meaning of the provisions of
Indian Penal Code (45 of 1860).
~ 382 ~
Annexures
__________________________________________________________________________________
Annexure 1.2
(Para 1.8)
GOVERNMENT OF MIZORAM
FINANCE DEPARTMENT
ORDER
Dated Aizawl the 18th April, 2021
No.G.11021/1/2017-FMC: In pursuance of sub-section (1) of section 3 of the

Mizoram Finance Commission Act, 2010 (Act No.17 of 2010), the Governor of
Mizoram is pleased to constitute the Second Mizoram Finance Commission
consisting of Pu Lalthansanga, MFAS (Rtd) as the Chairman and Pu F.Vanlalruata,
MFAS (Rtd) as Member Secretary.
2. The Chairman and the Member Secretary shall assume Office during the first
week of May, 2021, and shall hold office upto the date of submission or report
or 30th day of June, 2022 whichever is earlier.
3. The Commission shall make recommendation as to the following matters,

namely:-
(1) The principles which should govern-
(i) the distribution between the State and the Rural Local Bodies, Urban
Local Bodies and the Autonomous District Councils of the net
proceeds of the taxes, duties, tolls and fees leviable by the State,
which may be divided between them to enable these bodies to perform
the functions assigned, and which may be assigned to it under any
laws in force or orders, and the allocation between -the Rural Local
Bodies, Urban Local Bodies and the , Autonomous District Councils at
all levels of their respective shares ofsuch proceeds;
assigned to, or appropriated by, the Rural Local Bodies, Urban Local
Bodies and the Autonomous DistrictCouncils;
(iii) the grant-in-aid to the Rural Local Bodies, Urban Local Bodies and
the Autonomous District council, from theConsolidated Fund of
Mizoram;
(2) the measures needed to improve the financial position of the Rural Local
4. In making its recommendation, the Commission shall have regard, among

other consideration, to-
(i) the resources of the State Government, for five years commencing on
01.04.2021, on the basis levels of taxation and non-revenues likely to be
reached at the end of March, 2021;
~ 383 ~
__________________________________________________________________________________
(ii) the demands on the resources of the State Government, in particular, on

and other committed expenditure and liabities;
(iii) the objectives of State’s fiscal consolidation road map recommended by
the Fifteenth-Finance Commission, which bind the managementof public
finance of Mizoram;
(iv) the functions which may be transferred to the Rural Local Bodies, Urban
Local Bodies and the Autonomous District Councils for the coming five
years with the effect from 1st April, 2021 and the manner in which the
existing functionaries of the State Government, who are at the time of
making recommendations are performing the functions recommended
for transfer to the local bodies, shall be transferred to the Rural Local
(v) the taxation efforts of the State Government in relation to levy of all
types property tax by the local bodies for additional resource
mobilization to enhance the financial independence and capacity of the
local bodies to perform the functions assigned to them;
(vi) the need to enhance disaster management at the local levels so as to
avoid minor disasters as such as landslips, etc at the local levels;
(vii) the need to manage ecology, environment and climate change at the
local levels;
(viii) 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;
(ix) The Commission may submit Interim Report for the Financial Year
2O21- 22 in the, month of November, 2O21;
5. In making its recommendations on various matters, the Commission shall use

the population data of 2011, in all such cases where population is a factor for
determination of devolution of taxes and duties and grants-in-aids.
6. The Commission shall indicate the basis on which it has arrived at its findings
and make available the estimates of receipts and expenditure of the State
Government and each of the local bodies.
7. The Commission shall make its report available latest by 30th day of June
2022, covering the period of five years commencing on the 1stday of April,
2021, including the Interim Report period.
Sd/- P. S. SREEDHARAN PILLAI

Governor of Mizoram
~ 384 ~
Annexures
__________________________________________________________________________________
Memo. No.G.11021/1/2017-FMC : Dated Aizawl, the 18th April, 2021

Copy to :
1. Secretary to the Governor

2. PS to Chief Minister
3. PS to Deputy Chief Minister
4. PS to Speaker/Deputy Speaker
5. PS to all Minister/Minister of State
6. PPS to Chief Secretary, Government of Mizoram
7. All Administrative Departments
8. Accountant General, Mizoram, Aizawl
9. Secretary, Mizoram Legislative Assembly
10. All heads of Deparments
11. All the Deputy Commissioners
12. Executive Secretary, LADC/MADC/CADC
13. Municipal Commissioner, Aizawl Municipal Corporation
14. Controller, Printing & Stationeries with 6 (six) spare copies for
immediate publication in the Official Gazette Extra-ordinary issue.
15. Guard File
Sd/- LALTHANSANGA
Finance Secretary
Government of Mizoram
~ 385 ~
__________________________________________________________________________________
Annexure 1.3
(Para 1.9)
FINANCE DEPARTMENT
NOTIFICATION
No.G.11024/1/2017-FMC: dated the 24th September, 2021: In partial

modification of Order issued vide memo No.G.11021/1/2017. FMC dated Aizawl
the 18th April, 2021 and in pursuance of sub-section (1) of Section 3 of the Mizoram
Finance Commission Act, 2010 (Act No 17 of 2010), the Governor of Mizoram is
pleased to appoint Pu F. Vanlalruata, MFAS (Rtd) as Chairman and Pu
Lalmalsawma, MFAS (Rtd) as Member Secretary of the Second Mizoram Finance
Commission.
Further, the Governor is pleased to amend. and substitute para 2, 4(ix) and
7 of his order published vide No.G.11021/1/2017.FMC dated 18th April, 2021with
the following namely-
1. “2. The Chairman and Member Secretary shail assume office during the first
week of October, 2021 and sha1l hold office upto the date of submission of
Report or 31st day of December, 2022 whichever is earlier”.
2. “4(ix), deleted”
3. “7. The Commission shall make its report available latest by 31st day of
December, 2022 covering the period of five years commencing on the 1 st day
of April, 2021.
The terms of reference, etc. already published vide order referred to above
remain unchanged.
Sd/- LALTHANSANGA
Finance Secretary
~ 386 ~
Annexures
__________________________________________________________________________________
Memo No.G.11024/1/2017-FMC: Dated Aizawl, the 24th Sept, 2021

Copy to :

3. PS to Deputy Chief Minister
4. PS to Speaker/Deputy Speaker
5. PS to all Minister/Minister of State
8. Accountant General, Mizoram, Aizawl
9. Secretary, Mizoram Legislative Assembly
10. All heads of Deparments
14. Controller, Printing & Stationeries with 6 (six) spare copies for
immediate publication in the Official Gazette Extra-ordinary issue.
15. Pu F. Vanlalruata, MFAS (Rtd), Ramhlun North, Aizawl.
16. Pu Lalmalsawm, MFAS (Rtd), Chawnpui, Aizawl.
17. Guard File
Sd/- C. LUNGMUANPUIA
Under Secretary to the Govt. of Mizoram
Finance Department (FC&MC)
~ 387 ~
__________________________________________________________________________________
Annexure 1.4
(Para 1.10)
The Mizoram Gazette

EXTRA ORDINARY
Published by Authority
RNI No. 27009/1973 Postal Regn. No. NE-313(MZ) 2006-2008 Re. 1/- per issue
VOL – XL Aizawl, Friday 1.4.2011 Chaitra 11, S.E 1933, Issue No. 154__
NOTIFICATION
No.G.11021/13/93/FCC-, the 29th March, 2011: Whereas section 8 of the

Mizoram Finance Commission Act, 2010 (Act No.17 of 2010) empowers the
Governor of Mizoram to make rules to determine fees, salaries and allowances of
the Chairman and other members of the Mizoram Finance Commission;
Now, therefore, in exercise of the powers conferred by Section 8 of the

said Act, the Governor of Mizoram hereby makes the following rules, namely:-
1. Short title and commencement:-
(1) These rules may be called the Mizoram Finance Commission (Salaries and
Allowances) Rules, 2010.
(2) They shall come into force on the date of their publication in the Official
Gazette.
2. Salary and Allowances of the Chairman:-
(1) If the Chairman appointed to render whole time service is given the rank of a
Cabinet Minister, he may exercise the following options, either:-
a) to draw pay (less pension in case of retired officials), dearness
allowance and perquisites of the Chief Secretary to the Government of
Mizoram and status of a Cabinet Minister; and to draw traveling
allowance, including daily allowance, for any journey performed by
him as Chairman, at such rates as are admissible to the Chief
Secretary to the Government of Mizoram; or
b) to draw pay, daily allowance, perquisites and status applicable to a

Cabinet Minister (plus pension without dearness relief in case of
retired officials); and to draw traveling allowance, including daily
allowance, for any journey performed by him as Chairman, at such
~ 388 ~
Annexures
__________________________________________________________________________________
rates as are admissible to the Cabinet Minister of the Government of

Mizoram;
(2) 1(a) If the Chairman is not given a status of a Cabinet Minister and if he is a
retired Government servant, he shall be entitled to draw the pay and all
allowances including travelling allowance, daily allowance, medical facilities,
perquisite and status as admissible to the Chief Secretary to the
Government of Mizoram, less pension, including the pensionary equivalent
of any other form of retirement benefit.
(2) (b) If a Chairman is not given a status of a Cabinet Minister and if he is not
retired Government servant, he shall be entitled to draw the pay and all
allowances including travelling allowances, daily allowance, medical
facilities, perquisite and status as admissible to the Chief Secretary to the
Government of Mizoram.
(3) A person appointed to render whole time service as the Chairman of the
Commission shall also be entitled to:-
a) the use of a fully furnished residence in Aizawl throughout his term of
office and for a further period of 15 days immediately thereafter; and
b) to no amount by way of any compensatory allowance.
(4) A person appointed to render part-time service as the Chairman of the

Commission, notwithstanding any status given to him, shall draw a daily
allowance of ₹2,000.00 per day for the period spent by him on duty as
Chairman and he shall further be entitled to draw traveling allowance (but
not daily allowance) for journeys performed by him as the Chairman at the
rate as is admissible to the Chief Secretary to the Government of Mizoram.
provided that where the person so appointed is a Member of Mizoram

Legislative Assembly or a Member of Parliament, he shall in lieu of the
allowances provided for in this sub-rule, draw a daily allowance for each day
spent by him on duty as Chairman of the Commission at the same rate as is
admissible to him as a Member of Mizoram Legislative Assembly or a
Member of Parliament, and he shall further be entitled to draw traveling
allowance for any journey performed by him as such Chairman at the same
rate as is admissible to him as a Member of Mizoram Legislative Assembly or
a Member of Parliament, as the case may be.
3. Salaries & Allowances of other Members:-
(1) If the Member appointed to render whole time service is given the rank of a
Minister of State, he may exercise the following options, either:-
1
Sub-rule (2) of rule 2 substituted by the Mizoram Finance Commission (Salaries and
Allowances) (Amendment) Rules, 2012 and the Mizoram Finance Commission (Salaries and
Allowances) (Amendment) Rules, 2021.
~ 389 ~
__________________________________________________________________________________
a) to draw pay (less pension in case of retired officials), dearness

allowance and perquisites of the Commissioner & Secretary to the
Government of Mizoram and status of a Minister of State; and to draw
traveling allowance, including daily allowance, for any journey
performed by him as a Member, at such rates as are admissible to the
Commissioner & Secretary to the Government of Mizoram; or
b) to draw pay, daily allowance, perquisites and status applicable to a

Minister of State (plus pension without dearness relief in case of
retired officials); and to draw traveling allowance, including daily
allowance, for any journey performed by him as a Member, at such
rates as are admissible to the Minister of State of the Government of
Mizoram;
(2) 2(a) If the Member or Member Secretary is not given a status of a Minister of
State, and if he is a retired Government servant, he shall be entitled to draw
the pay and all allowances including travelling allowance, daily allowance,
medical facilities, perquisite and status as admissible to the Principal
Secretary to the Government of Mizoram, less pension, including the
pensionary equivalent of any other form of retirement benefit.
(2) (b) If a Member or Member Secretary is not given a status of a Minister of

State, and if he is not retired Government servant, he shall be entitled to
draw the pay and all allowances including travelling allowances, daily
allowance, medical facilities, perquisite and status as admissible to the
Principal Secretary to the Government of Mizoram.
(3) A person appointed to render part-time service as the Member shall draw a
daily allowance of ₹1,500.00 per day for the period spent by him on duty as
the Member, and he shall further be entitled to draw traveling allowance (but
not daily allowance) for journeys performed by him as the Member, if he is
given the status of a Minister of State, at the rate as admissible to a Minister
of State or if he is not given the status of a Minister of State, at the rates
admissible to the Officer drawing a Grade Pay of ₹9,500 per mensem.
(4) A person in service under the Government of Mizoram or Central

Universities appointed to render whole-time or part-time service as a
Member of the Commission shall be entitled to, in addition to the salary and
all other entitlements enjoyed by him as an employee of the
Government/Central University, a fixed honorarium at the rate of ₹700.00
per day for the period spent by him on duty as the Member and, he shall
further be entitled to draw traveling allowance (but not daily allowance) for
2
Sub-rule (2) of rule 3 substituted by the Mizoram Finance Commission (Salaries and
Allowances) (Amendment) Rules, 2012 and the Mizoram Finance Commission (Salaries and
Allowances) (Amendment) Rules, 2021.
~ 390 ~
Annexures
__________________________________________________________________________________
journeys performed by him as such Member at the rates admissible to him

under the organization to which he belongs.
4. Other entitlements:- The Chairman and other Members of the Commission

shall be entitled:-
i) to medical treatment and hospital facilities as available to the status given to

him under rule 2 and rule 3 of these rules;
ii) to all kinds of leave as are admissible under the Central Civil Services
(Leave) Rules, 1972;
By order, etc.
Sd/ LALMALSAWMA
Finance Secretary
~ 391 ~
__________________________________________________________________________________
Annexure 1.5
(Para 1.11)
FINANCE DEPARTMENT
NOTIFICATION
No.G.11020/5/2021-FMC: Dated the 5th December, 2022 : In the interest of

public service, the Governor of Mizoram is pleased to extend the term of Office of
the 2nd Mizoram Finance Commission upto the date of submission of Reports or
30th day of June, 2023 whichever is earlier.
This refers to Government of Mizoram Order No.G.11021/1/2017-

FMCDt.18.4.2021 and No.G.11024/1/2017-FMC Dt.24.9.2021.
Sd/- VANLAL CHHUANGA

Principal Secretary to Government of Mizoram
Finance Department
Memo No.G.11020/5/2021-MFC : Dated Aizawl, the 5th December, 2022
Copy to :
1. Secretary to the Governor, Mizoram.
2. PS to Chief Minister, Mizoram.
3. PS to Deputy Chief Minister, Mizoram.
4. PS to Speaker/Deputy Speaker, Mizoram.
5. PS to all Ministers/Minister of State, Mizoram.
6. PPS to Chief Secretary, Government of Mizoram.
7. Chairman, 2nd Mizoram Finance Commisison.
8. Member Secretary, 2nd Mizoram Finance Commission.
9. All Administrative Head of Departments.
10. Accountant General, Mizoram, Aizawl.
11. Secretary, Mizoram Legislative Assembly.
12. All Head of Departments.
13. All Deputy Commissioners.
14. Executive Secretary, LADC/MADC/CADC.
15. Municipal Commissioner, Aizawl Municipal Corporation.
16. Controller, Printing & Stationeries with 6 (six) spare copies for immediate
publication in the Official Gazette Extra-ordinary issue.
17. Guard File.
~ 392 ~
Annexures
__________________________________________________________________________________
Annexure 1.6
(Para 1.11)
FINANCE DEPARTMENT
*****
NOTIFICATION
Dated Aizawl, the 5th June, 2023
No.G.11020/5/2021-FMC: In the interest of public service and in continuation of

Government of Mizoram Order No.G.11020/5/2021-FMC. Dt 5.12.2022, the
Government of Mizoram is pleased to further extend the term of office of the 2 nd
Mizoram Finance Commission by another one month from 30 th June, 2023 to 31st
July, 2023.
Sd/- VANLAL CHHUANGA

Principal Secretary
Finance Department.
Memo No.G.11020/5/2021-FMC: Dated Aizawl, the 5th June, 2023

Copy to :-
1. Secretary to the Governor, Mizoram.
2. PS to Chief Minister, Mizoram.
3. PS to Deputy Chief Minister, Mizoram.
4. PS to Speaker/Deputy Speaker, Mizoram.
5. PS to all Ministers, Minister of State, Mizoram
6. PPS to Chief Secretary, Government of Mizoram.
7. Chairman, 2nd Mizoram Finance Commission.
8. Member Secretary, 2nd Mizoram Finance Commission.
9. All Administrative Heads of Department.
10. Accountant General, Mizoram, Aizawl.
11. Secretary, Mizoram Legislative Assembly.
13. All Deputy Commissioners.
14. Executive Secretary, LADC/MADC/CADC.
16. Chief Executive Officer, Lunglei Municipal Council.
17. Controller Printing and Stationeries with six (6) spare copies for
publication in the Official Gazette Extra-Ordinary issue.
18. Guard File.
~ 393 ~
__________________________________________________________________________________
Annexure 1.7
(Para 1.13)
FINANCE DEPARTMENT
(FC&MC)
NOTIFICATION
Dated Aizawl, the 26th Nov, 2021
No.A.11020/2/2011-MFC : In the interest of public service, the Governor of

Mizoram is pleased to order revalidation of 27 (twenty seven) numbers of various
categories of post created for the Mizoram Finance Commission vide Memo
No.A.11020/2/2011-FMC Date 16.2.2012 co-terminus with the Commission as
follows:-
Sl Name of Post No. of Pay Band GP Mode of filling up

No. (Equivalent Post under Post
Govt. of Mizoram)
1 Secretary (Equivalent 1 PB-4 8,900 On need base

to Addl. Secretary 37,400-67000 and on
deputation
2 Deputy Secretary 1 PB-3 7,600 On need base
15,600-39,100 and on
deputation
3 Under Secretary-cum- 1 PB-3 6,600 On need base
Senior Research 15,600-39,100 and on
Officer (Under deputation
Secretary)
4 Research Officer 2 PB-3 4,400 On need base
(Entry Grade of Group 15,600-39,100 and on
‘A’) deputation
5 Research Investigator 6 PB-2 4,400 On need base
(Inspector of Statistic) 9,300-34,800 and on
deputation
6 Computer 3 PB-1 2,800 On need base
Operator/Data Entry 5,200-20,200 and on
Operator (10+2) with 6 deputation
months Diploma
Certificate)
7 Assistant 1 PB-2 4,400 On need base
9,300-34,800 and on
deputation
8 UDC 2 PB-2 4,200 On need base
9,300-34,800 and on
deputation
9 Driver 4 PB-1 1,900 On need base
5,200-20,200 and on MR basis
~ 394 ~
Annexures
__________________________________________________________________________________
@ Rs.240/-p.d.
10 IV Grade 6 -1S 1,650 On need base

4,400-7,440 and on MR
(Unskilled) basis
@ Rs.170/-p.d.
This issues with the approval of DP&AR(ARW) vide I.D. No.ARW/MFC/2021-

2022/B-164 dt. 11.11.2021
The Commission is authorized to make necessary recruitment within the

time frame whether it is on deputation, contract or any other status so as to
expedite the works of the Commission as the time is short as per concurrence of
Finance Department vide I.D.No.Fin(E)301/2021 dt.24.11.2021. In the case of
deputation, existing instructions of Government regarding deputation may be
followed.
Sd/- LALTHANSANGA
Secretary to Govt. of Mizoram
Finance Department
Memo No.A.11020/2/2011-FMC Dated Aizawl, the 26th Nov, 2021
Copy to :-
1. Secretary to Governor, Mizoram

2. P.S. to Chief Minister, Government of Mizoram
3. P.S. to Minister/Minister of State Government of Mizoram
4. P.S. to Speaker/Deputy Speaker
5. Sr. P.P.S. to Chief Secretary, Government of Mizoram
6. All Administrative Department, Government of Mizoram
7. All Heads of Department, Government of Mizoram
8. All Deputy Commissioner, Mizoram
9. Secretary, Mizoram Public Service Commission
12. Controller of Printing and Stationeries, Mizoram with 6(six) spare copies
for publication in Mizoram Gazetted Extraordinary
13. Guard File
Finance Department
(FC&MC)
~ 395 ~
__________________________________________________________________________________
Annexure 1.8
(Para 1.13)
No.A.11020/1/2021-FC&MC
FINANCE DEPARTMENT
(Finance Monitoring Cell)
Dated Aizawl, the 20th Dec, 2021

To,
Member Secretary
2nd Mizoram Finance Commission
Mizoram : Aizawl
Subj:- Engagement of 8 member of various category of employee on Contract

and Muster Roll basis for personal staff of the officers of the 2 nd
Mizoram Finance Commission.
Sir,
I am directed convey sanction of the Government for engagement of 8
members of various category of employee on Contract and Muster Roll basis for
personal staff of the officers for the newly established 2nd Mizoram Finance
Commission on Co-terminus basis with the Commission w.e.f. the actual date of
engagement up to 31.12.2022 as detailed shown below :-
Sl. Name of Post Personal Staff No. of Mode of

No. personal engagement
staff
1 Chairman 1. Private Secretary 1 Contract basis
2. LDC 1 MR basis (Skilled-
II)
3. IV Grade 1 MR basis
(Unskilled)
2 Member 1. Private Secretary 1 Contract basis
Secretary 2. LDC 1 MR basis (Skilled-
II)
(Unskilled)
3 Deputy 1. Stenographer Gr. 1 Contract basis
Secretary III
(Unskilled)
TOTAL 8
This issued with the approval of DP&AR (ARW) conveyed

I.D.No.ARW/MFC/2021-2022/B-180 dt. 1.12.2021 and concurrence of Finance
department ID.No.Fin(e) 346/2021 dt. 14.12.2021.
Finance (FC&MC)
~ 396 ~
Annexures
__________________________________________________________________________________
Memo No.A.11020/1/2021-FC&MC : Dated Aizawl, the 20th Dec, 2021

Copy to :-
1. Under Secretary, DP&AR (ARW), Mizoram, Aizawl

2. Under Secretary, Finance Department (E), Aizawl, Mizoram
3. Treasury Officer, Aizawl South
4. Guard File.
Finance (FC&MC)
~ 397 ~
__________________________________________________________________________________
Annexure 1.9
(Para 1.14)
LIST OF OFFICERS AND STAFF IN SECOND STATE FINANCE COMMISSION OF
MIZORAM
Sl.No. Name Designation Contact No.
1 F.Vanlalruata Chairman 9436140947
2 Lalmalsawma Member Secretary 9436140310
3 Lalrohlua Deputy Secretary 9436363171
4 C. Lungmuanpuia Under Secretary 8474094939
[attached from Finance
Department (FC&MC/APF) as
an additional charge]
5 Robert Lalramhluna Assistant 8258077474
[attached from Directorate of
IF&SL]
6 Lalpiangthari Zote Data Entry Operator [attached 9774016484
from Directorate of Local Fund
Audit and Pensions]
Designated as P.A to Member
Secretary
7 Jenny Lawmsangpuii P.A to Chairman [Contract co- 9089525288
terminus]
8 Biakhluni LDC [attached from Directorate 9862845254
of IF&SL]
9 K. Lalthanchami LDC [Muster Roll co-terminus] 9150495842
Designated as P.A to Deputy
Secretary
10 F. Vanlalhruaitluanga LDC [Muster Roll co-terminus] 8730977699
11 Zothansangi LDC [Muster Roll co-terminus] 9862153713
12 Lalrinmawia Driver [Provisional Employee 9612216834
attached from Directorate of
Accounts & Treasuries]
13 Lallawmzuala Driver [Muster Roll co- 7085413528
terminus]
14 Lalsiammawia Driver [Muster Roll co- 7225832369
terminus]
15 Vanlaldika Driver [Muster Roll co- 8014790136
terminus]
16 Lalrintluanga Peon [Muster Roll co-terminus] 8413039713
17 Lalramzuala Peon [Muster Roll co-terminus] 7641037658
18 V. Lalhmingliana Peon [Muster Roll co-terminus] 9612876517
19 H. Lalmuanawma Peon [Muster Roll co-terminus] 8794141496
20 V. Lalfamkimi Peon [Muster Roll co-terminus] 9366355313
21 Lalnunhlui Peon [Muster Roll co-terminus] 9366486996
22 H. Lalramnghaki Sweeper [Muster Roll co- 9612522296
terminus]
23 Lalnunthari Sweeper [Muster Roll co- 8257945740
terminus]
~ 398 ~
Annexures
__________________________________________________________________________________
Annexure 1.10
(Para 1.16)
MIZORAM FINANCE COMMISSION
MIZORAM : AIZAWL
Dated Aizawl, the 21st February,2022
CIRCULAR
No.A.11013/1/2022-MFC : It is circulated for information of all concerned

that the Second Mizoram Finance Commission consisting of Pu F.Vanlalruata as its
Chairman and Pu Lalmalsawma as its Member Secretary has started functioning
on full-time basis.
2. The Office address and the contact numbers of the Commission are given as
below-
Office Address :
1st& 2nd Floor, Directorate of Accounts and Treasuries Building,

Chanmari, Ramhlun Road, Aizawl, Mizoram.
Contact Numbers:
Name Designation Contact Number Contact

(Office) Number
(Residence)
1 2 3 4
Pu F.Vanlalruata Chairman 2343381 2345246
Pu Lalmalsawma Member Secretary 2343303 2340436
Website : http//mfc.mizoram.gov.in.in
E-mail : mizofincom22@gmail.com
3. The Commission would like to request all the interested persons to feel free
to give suggestions, etc in connection with its Terms of Reference, the full text of
which was available in the Commission's website. The suggestions so offered may
be sent to the email address provided above.
4. Over and above the information, suggestions, etc which may be received
from general public, the Commission shall require inputs from various
Departments of the Government. In this instance, the Commission would like to
draw the attention of all concerned to the provisions of sub-section (2) of Section 9
of the Mizoram Finance Commission Act, 2010 (Act No.17 of 2010) which confer all
the powers of a Civil Court to the Mizoram Finance Commission under the Code of
Civil Procedure, 1908 while trying a suit in respect of the following matters,
namely-summoning and enforcing the attendance of witnesses; requiring the
production of any document; and requisitioning any public record from any court
or office.
Sd/- LALROHLUA
Deputy Secretary
Ph: 0389-2346162
~ 399 ~
__________________________________________________________________________________
No.A.11013/1/2022-MFC Dated Aizawl, the 21st February, 2022
Copy to:
1. Secretary to Governor, Mizoram.
2. Addl. CS to Chief Minister, Mizoram.
3. PS to Speaker/all Ministers/Dy. Speaker/ Minister of State/
Parliamentary Secretaries, Mizoram.
4. PS to Vice Chairman, SPB.
5. PS to Govt. Deputy Chief Whip, Mizoram.
6. Sr. PPS to Chief Secretary, Mizoram.
7. Accountant General, Mizoram Aizawl.
8. All Administrative Department, Govt. of Mizoram.
9. Resident Commissioner, Government of Mizoram, New Delhi.
10. Commissioner & Secretary, Mizoram Legislative Assembly.
11. Secretary, MPSC, MIC, SEC, Lok Ayukta.
12. Executive Secretary, Lai Autonomous District Council, Mara
Autonomous District Council, Chakma Autonomous District Council.
14. Registrar, Guwahati High Court, Aizawl Bench.
15. All Heads of Department.
16. Chief Controller of Accounts, Accounts & Treasuries, MINECO, Aizawl.
17. Joint/Deputy Resident Commissioner Mizoram House, Kolkata/
Guwahati/ Shillong/ Silchar/ Mumbai/ Bengaluru.
18. Guard File.
Sd/- LALROHLUA
Deputy Secretary
Ph: 0389-2346162
~ 400 ~
Annexures
__________________________________________________________________________________
Annexure 2.1
(Para 2.6)
FINANCE DEPARTMENT
(Finance Commission & Monitoring Cell)
EXPLANATORY MEMORANDUM AS TO THE ACTION TAKEN ON THE

RECOMMENDATIONS MADE BY THE FIRST MIZORAM FINANCE COMMISSION
IN ITS REPORT SUBMITTED TO THE GOVERNOR ON FEBRUARY 2, 2015.
1. The Mizoram Finance Commission (hereafter referred to as the Commission)

was constituted by the Governor on September 30, 2011 to give
recommendations in the line and spirit of the 73rd and 74th constitutional
amendments for devolution of Funds, Functions and Funtionaries to the 3
Autonomous District Councils, the Aizawl Municipal Council and the Village
Councils in the States including those in the autonomous Districts covering a
period of five years (2015-2020). The Commission submitted its report to the
Governor on February 2, 2015 covering all aspects of its mandate.
2. The report of the Commission (hereafter referred to as the Report) covering the
five year period commencing from April 1, 2015, together with this Explanatory
Memorandum on the action taken on the recommendations of the Commission
is being laid on the Table of the House, in pursuance of clause (4) of the Article
243-I of the Constitution. Summary of the main recommendations of the
Commission relating to the sharing of net proceeds of taxes, duties, tolls and
fees between the State and the Aizawl Municipal Councils, Autonomous District
Councils and the village Councils, grants-in-aid to the Aizawl Municipal
Counncils, Autonomous District Councils and the Village Councils from the
consolidated Fund of Mizoram are contained in Chapter 12 of the Report of the
Commission.
3. The Policy of the Central Government has all along been to strengthen and to
empower the elected bodies at the Village and Municipalities. In other words,
the Central Government desired that those elected bodies should function as a
mini-government as part of decentralization and democratization process.
4. As per the report, the Commission recommended certain changes for

devolution of Funds, Funtions and Funtionaries to local bodies in Paras 2.26,
9.7 and 9.22 :-
a) Para 2.26 : “…a Secretary at the rank of Assitant Grade may be posted to
look after bigger Village Councils of 301 households or more, and a cluster
of two or more Village Councils in other cases.”
b) Para 9.7 :”…we have recommended 15 per cent vertical transfer of State
Taxes (with additional 5 per cent of the excise duty from the date of actual
levy) to all the local bodies in aggregate. As per our recommended vertical
~ 401 ~
__________________________________________________________________________________
transfer mechanism 15 per cent of those tax revenues are to be transferred

to the local bodies in each year.”
c) Para 9.22 : “…we recommended that in our deficit financing mechanism the
recommended State tax devolution together with the grants-in-aid by the
State Government should axceed the amount of Salary expenditure of the
individual ADC in a given year”
5. The report of the Commission, after careful examination by Finance

Department, was submitted alongwith observations to the Hon’ble Finance
Minister and was further placed before the Council of Ministers.
6. The Council of Ministers in its meeting held on 14.12.2015 at 2:30 PM

expressed its appreciation as follows :-
“The Council of Ministers expressed appreciation of the work done by

the Commission. The recommendations will be taken up for
examination/implementation on a case to case basis.”
It is proposed that the report of the first Mizoram Finance Commission be

laid in the ensuing Budget session. Since the Cabinet has already considered the
report in general, the same may not need to be considered by the Cabinet again for
laying it in the House.
The proposed was approved by the Hon’ble Chief Minister on 26.1.2016.
Aizawl February 16, 2016

LALSAWTA
Finance Minister
~ 402 ~
Annexures
__________________________________________________________________________________
Annexure 2.2
(Para 2.9)
No.B.13017/114/2021-UD&PA
URBAN DEVELOPMENT & POVERTY ALLEVIATION DEPARTMENT
MIZORAM NEW CAPITAL COMPLEX ( MINECO)
Office Phone No. 0389-2323257 Email:udpamizoram&gmail.com
******
NOTIFICATION
Dated Aizawl, the 1st March, 2022
In continuation to this Department’s Notification of even no. dt.

22.11.2021 and in exercise of powers conferred under Section 6 of the Mizoram
Municipalities Act, 2007 (Act No. 6 of 2007), the Governor of Mizoram, after
consideration of objections and suggestions from interested parties, hereby
constitutes the areas specified in the enclosed Annexure to be the Lunglei
Municipal Area under the said Act with immediate effect and until further orders.
Sd/- K. LALTHAWMMAWIA
Secretary to the Govt. of Mizoram
Urban Development & Poverty Alleviation Department
Memo No.B.13017/114/2021-UD&PA : Dated Aizawl, the 1st March, 2022
Copy to :-
1. Secretary to the Governor, Mizoram
2. PS to Hon’ble Chief Minister, Mizoram
3. PS to Hon’ble Deputy Chief Minister, Mizoram
4. PS to Speaker/ all Ministers/ Ministers of State, Mizoram
5. PS to Vice Chairman, High Powered Committee, Lunglei
6. PA to Chairman, Mizoram Youth Commission
7. PA to Vice Chairman, Bamboo Development Board
8. Sr. PPS to Chief Secretary, Government of Mizoram.
9. All Administrative Department, Government of Mizoram
10. All Heads of Department, Government of Mizoram.
11. Controller, Printing & Stationeries Deparment with 5(five) copies for
publication in the Extra-ordinary Mizoram Gazette.
12. Deputy Commissioner, Lunglei with 5 spare copies for displaying in the
Notice Board and pasting it conspicuous places of his office.
13. Director, UD&PA Department, for displaying the content in
conspicuous places.
14. District Information & Public Relations Officer, Lunglei for publication
in Mizo Vernacular in two leading Newspaper of Lunlei.
15. Municipal Commissioner, Aizawl Municipal Corporation, Mizoram.
16. Guard File.
Sd/- ZORAMSIAMA HMAR

Urban Development & Poverty Alleviation Department
~ 403 ~
__________________________________________________________________________________
THE SCHEDULE
The following localities taken together with their respective

boundaries as declared by the Government from time to time shall constitute the
area of Lunglei Municipal Council :-
1. Pukpui
2. Zotlang
3. Serkawn
4. Zohnuai
5. College Veng
6. Bazar Veng
7. Hauruang
8. Sazaikawn
9. Rahsi Veng
10. Venghlun
11. Venglai
12. Electric Veng
13. Farm Veng
14. Chanmari
15. Salem Veng
16. Ramthar
17. Lungmual
18. Lunglawn
19. Sethlun
20. Theiriat
21. Hrangchalkawn
22. Lungpuizawl
23. Zobawk North
24. Zobawk South
~ 404 ~
Annexures
__________________________________________________________________________________
Annexure 2.3
(Para 2.9)
No.A.11011/1/2016-FMC
FINANCE DEPARTMENT (FC&MC)
OFFICE MEMORANDUM
Dated Aizawl, the 4th May 2016
In pursuance of decision of the Council of Ministers obtained by Circulation

in respect of Para 9.1 – 9.25 (Devolution of 15% State’s Own Tax Revenues to Local
Bodies and Deficit Financing of Local Bodies) of the Report of the first Mizoram
Finance Commission (2015-2020) which was laid in the 7th Mizoram Legislative
Assembly in its eight session during March, 2016, the Governor of Mizoram is
pleased to issue this memorandum regarding mode of release of Share of Taxes and
Non-Plan Revenue Deficit Grant to Local Bodies of the State as shown below :-
1. 15% share in Own Tax Revenue of the State shall be devolved to the local
bodies over and above the grants in aid of the State or of the centre flowing to
Local Bodies. The commission also recommended that a share of at least 5% of
the excise duty may be devolved to the local bodies. Since the excise duties
form part of the tax revenue it should not be treated as separated component
and should be included in the divisible pool as part of the tax revenue. That
means 15% of the excise duty collected will also be shared to local bodies
instead of the recommended 5%.
2. The State Government shall release the share of Local Bodies in State’s Own
Tax Revenues in fourteen (14) installments and the Non-Plan Revenue Deficit
Grant due to the Local Bodies in monthly installments as being practiced at the
national level in making devolution to the States. This practices is to ensure
that funds are available for transfer to the Local Bodies in line with receipt of
remittances by State Government from the Central Government.
3. The Commission has recommended devolution of Share of State’s Own Tax and
Non-Plan Revenue Deficit Grant for a period of 5(five) years staring from 2015-
16 to 2019-20. However, for actual devolution of the share of the Local Bodies,
amounts recommended for the year 2015-16 shall be treated to have lapsed
and in no case, claim either in the form of arrear or yearly installments can be
preferred to the State Government.
4. All revenues expenditure including Pay revision, pension and increase in

Dearness Allowance/Dearness Relief, land compensation etc. shall be met from
the Revenue Deficit Grants of Non-Plan Revenue Deficit Grants and the State’s
Own Tax Revenues devolved to the Local Bodies as recommended by the
Commission. However, expenditure for conduct of elections to the Local bodies
~ 405 ~
__________________________________________________________________________________
including Autonomous District Councils shall be borne by the State

Government.
5. Distribution of the 15% devolution of State Own Tax Revenues among the local
bodies would be made in three(3) stages as follows :-
Stage 1 The 15% of the State Own Tax Revenue shall be shared by
(i) Autonomous District Council - 58.33%
(ii) Village Council of the Eight (8) District - 24.17%
(iii) Aizawl Municipal Council - 17.50%
TOTAL = 100%
Stage 2 The 58.33% of the 15% of the State Own Tax Revenue to be devolved
to Autonomous District Council shall be shared as follows:-
(i) Lai Autonomous District Council - 41.97%
(ii) Mara Autonomous District Council - 34.07%
(iii) Chakma Autonomous District Council - 23.96%
Stage 3 The 24.17% of the 15% of the State Own Tax Revenue shall be shared
by the Village Councils as follows:-
(i) Aizawl District - 12.32%

(ii) Lunglei District - 22.27%
(iii) Champhai District - 16.42%
(iv) Serchhip District - 7.66%
(v) Mamit District - 9.8%
(vi) Kolasib District - 10.73%
(vii) Saiha District - 7.81%
(viii) Lawngtlai District - 12.99%
6. The Share of Village Councils under Lawngtlai and Saiha district will be
transferred to respective Autonomous District Council (ADC) who in turn will
transfer the absolute share to the individual Village Council within seven (7)
days from the date of receipt of the devolution amount from the State
Government, failing which the amount would be deducted from the next
payment due to the ADC and the amount will be directly transferred to the
concerned Village Council by the State Government.
7. In addition to the recommendation made for the devolution of State’s Own Tax
Revenues, Non-Plan Revenue Deficit Grant for Autonomous District Councils,
Village Councils and Urban Local Bodies will be provided up to 2019-2020 as
per assessment and recommendation of the Commission. It is however to be
noted that there can be fluctuations on the amounts as the projections by the
Central Government are also subjects to national and international economic
position.
~ 406 ~
Annexures
__________________________________________________________________________________
8. The accounts of the Local Bodies shall be audited by the Director of Local Fund
Audit, Office of the Chief Controller of Accounts. The audited accounts shall be
placed before the Local Fund Accounts Committee which will further be laid in
the State Legislature
Sd/- LALROPARA
Secretary to Government of Mizoram
Finance Department
Memo No.A.11011/1/2016-FMC : Dated Aizawl, the 4th May, 2016
Copy to :-
1. Secretary to Governor, Mizoram
2. Principal Secretary to Hon’ble Chief Minister, Mizoram.
3. P.S. to Speaker/ Deputy Speaker, Mizoram Legislative Assembly
4. All P.S. to all Minister/Minister of State/Parliamentary Secretary,
Mizoram
5. All Members of Legislative Assembly
6. P.P.S. to Chief Secretary, Government of Mizoram
7. All Administrative Heads of Department for information and necessary
action.
8. All Heads of Department for information and necessary action.
9. Accountant General, Mizoram for Information
10. Guard File.
Sd/- LALHMINGMAWIA SAILO

Joint Secretary to Govt. of Mizoram
Finance Department
(FC&MC)
~ 407 ~
__________________________________________________________________________________
Annexure 2.4
(Para 2.9)
FINANCE DEPARTMENT
(FC&MC)
NOTIFICATION
Dated Aizawl, the 29th June, 2016
In the interest of Public Service and in pursuance of Para 9.14 of the

Report of 1stMizoram Finance Commission, the Governor of Mizoram is pleased to
constitute a ‘State Level Monitoring Committee on Local Body Funding’ consisting
of the following members :
1. Commissioner, Finance Department - Chairman

2. Secretary, Finance Department
3. Secretary, Local Administration Department
4. Secretary, Urban Development & Poverty Alleviation Department
5. Secretary, District Council Affairs
6. Additional Secretary, Finance Department (EC)
7. Additional Secretary, Finance Department (B)
8. Additional Secretary, Finance Department (FC&MC)
9. Joint Secretary, Finance Department (EC)
10. Joint Secretary, Finance Department (B)
11. Joint Secretary, Finance Department (FC&MC) - Member Secretary
12. Deputy Secretary, Finance Department (FC&MC)
13. Under Secretary, Finance Department (EC)
14. Under Secretary, Finance Department (FC&MC)
15. Director, Local Administration Department
16. Director, Urban Development & Poverty Alleviation Department
17. Commissioner, Aizawl Municipal Council
The terms of reference of the Committee shall be as follows:
To oversee the implementation of recommendations of the Mizoram

Finance Commission regarding release of fund by State Government to Local
Bodies.
Sd/- LALROPARA
Secretary
Finance Department,
~ 408 ~
Annexures
__________________________________________________________________________________
Memo No.G.11022/19/2016-FMC : Dated Aizawl, the 29th June, 2016

Copy to :-
1. P.S to Minister, Finance Department for information.
2. P.S to Parliamentary Secretary, Finance Department for information
3. Senior P.P.S. to Chief Secretary
4. P.P.S. to Finance Commissioner
5. Secretary. Finance Department
6. Secretary, Local Administration Department, Government of Mizoram
7. Secretary, Urban Development & Poverty Alleviation Department
8. Secretary, District Council Affairs
9. Additional Secretary, Finance Department (EC)
10. Additional Secretary, Finance Department (B)
11. Additional Secretary, Finance Department (FC&MC)
12. Joint Secretary, Finance Department (EC)
13. Joint Secretary, Finance Department (B)
14. Joint Secretary, Finance Department (FC&MC)
15. Deputy Secretary, Finance Department (FC&MC)
16. Under Secretary, Finance Department (EC)
17. Under Secretary, Finance Department (FC&MC) 18. Director, Local
Administration Department
18. Director, Urban Development & Poverty Alleviation Department
19. Commissioner, Aizawl Municipal Council.
20. Controller, Printing and Stationeries with 5 (Five) spare copies for
publication in the Mizoram Gazette.
Sd/- ROSIAMLIANA
(FC&MC)
~ 409 ~
__________________________________________________________________________________
Annexure 2.5
(Para 2.9)
No.G.11023/4/2008-FCC
FINANCE DEPARTMENT
NOTIFICATION
Dated 1st June, 2011
1. Whereas the Thirteenth Finance Commission of India in its report at

paragraph 10.121 and 10.161 recommended that the State Government
must put in place an audit system for all the local bodies;
2. And whereas the Thirteenth Finance Commission further recommended that

the Technical Guidance and Supervision over the audit of all the local bodies
shall be entrusted to the Comptroller & Auditor General of India, and his
Annual Technical Inspection Report as well as the Annual Report of the
Examiner of Local Fund Accounts must be placed before the State
Legislative Assembly;
3. And whereas the Accountant General (Audit) of Mizoram vide his letter
No.AG-MIZ/Local Bodies Audit/2011-12/33, dated 31.05.2011, in response
to the request made by the State Government pursuant to the
recommendations of the Finance Commission vide No.G.11023/4/2008-
FCC, dated 18.06.2010, requested the State Government to issue formal
notification for entrusting the responsibility of technical supervision and
guidance over the audit of all the local bodies within the State of Mizoram to
the Comptroller & Auditor General of India (that is the Accountant General
(Audit) of Mizoram);
4. Now, therefore, the Governor of Mizoram is pleased to entrust the Technical

Guidance and Supervision over the audit of all the local bodies within the
State of Mizoram to the Comptroller & Auditor General of India (that is the
Accountant General (Audit) of Mizoram) with immediate effect and until
further order. The Governor of Mizoram is further pleased to empower him to
conduct the Annual Technical Inspection/Audit under the provisions of
section 20 of the C&AG (Duties, Powers and Conditions of Service) Act,
1971. Over and above the audit of the C&AG, the Examiner of Local Fund
Accounts will be responsible for the audit of the accounts of the local bodies.
5. The scope of the Technical Guidance and Supervision by the Comptroller &
Auditor General of India (that is the Accountant General (Audit) of Mizoram)
should be broadly as under:
i. The audit methodology and procedures for audit of the accounts of

Village Councils, Urban Local Bodies and any other local bodies audit by
~ 410 ~
Annexures
__________________________________________________________________________________
the Examiner of Local Fund Accounts will be as per the audit

guidelines/standards prescribed by the Comptroller and AuditorGeneral
and various Acts / Statutes enacted by the Government.
ii. The nature, extent and scope of audit including form and contents ofthe
report of Examiner of Local Fund Accounts will be as per the guidelines
given by the Accountant General and various Acts /Statutes enacted by
the Government.
iii. The Examiner of Local Fund Accounts will prepare annual audit
planunder intimation to the Accountant General, indicating the
particulars of the Local Bodies that would be audited during the year.
iv. The Accountant General would conduct test‐check of some of the units
audited by the Examiner of Local Fund Accounts, in order to provide
technical guidance. The report of the test‐check conducted by the
Accountant General would be sent to the Examiner of Local Fund
Accounts for pursuance of action taken by the Local Bodies. The
Examiner of Local Fund Accounts will pursue the compliance of such
paras in Accountant General’s inspection report in the same manner as if
these are his own reports.
v. Accountant General will monitor the quality of the inspection reports

issued by the Examiner of Local Fund Accounts by calling for some of the
reports for his scrutiny. The Examiner of Local Fund Accounts will
furnish returns in such form as may be prescribed by the Accountant
General for the purpose of monitoring.
vi. Copies of issued Audit Reports in respect of 5% of Local Bodies should be

forwarded by the Examiner of Local Fund Accounts to the Accountant
General for advice on system improvements and the Accountant General
would make suggestions for improvement of existing manuals etc.
followed by the State Audit Department.
vii. Irrespective of the money value of the objections, any serious

irregularities noticed such as system defects, serious violation of rules,
frauds noticed by Examiner of Local Fund Accounts will be intimated to
the Accountant General.
By Order, etc
Sd/-LALMALSAWMA
Finance Secretary
~ 411 ~
__________________________________________________________________________________
Memo No.G.11023/4/2008-FCC : Dated Aizawl, the 1st June, 2011

Copy to:
3. PS to Speaker/ Deputy Speaker
4. PS to all Ministers/ Ministers of State/ Parliamentary Secretary
6. Accountant General (Audit), Mizoram
10. ELFA, CCA Office for necessary action
11. Chief Executive Officer, Aizawl Municipal Council
13. Development Officer, SHDC
14. Controller, Printing & Stationeries with 6 (six) spare copies
forpublication in the Official Gazette.
15. Guard File
Sd/- Dr. P.C. LALAWMPUIA

Under Secretary to Government
Finance Department (FMC)
~ 412 ~
Annexures
__________________________________________________________________________________
Annexure 3.1
(Para 3.25)
MEETINGS OF 2nd STATE FINANCE COMMISSION OF MIZORAM
Sl. Meetings of the Commission Date

No.
1 First meeting 1st December, 2021
2 Second meeting 3rd March, 2022
3 Third meeting 8th March, 2022
4 Fourth meeting 21st March, 2022
8 Fifth meeting 25th March, 2022
6 Sixth meeting 1st April, 2022
7 Seventh meeting 5th April, 2022
8 Eight meeting 8th April, 2022
9 Ninth meeting 13th April, 2022
10 Tenth meeting 19th April, 2022
11 Eleventh meeting 25th April, 2022
12 Twelfth meeting 2nd May, 2022
13 Thirteenth meeting 18th May, 2022
14 Fourteenth meeting 26th May, 2022
15 Fifteenth meeting 31st May, 2022
16 Sixteenth meeting 10th June, 2022
17 Seventeenth meeting 14th June, 2022
18 Eighteenth meeting 4th July, 2022
19 Nineteenth meeting 15th July, 2022
20 Twentieth meeting 4th August, 2022
21 Twenty-first meeting 12th August, 2022
22 Twenty-second meeting 19th August, 2022
23 Twenty-third meeting 8th September, 2022
24 Twenty-fourth meeting 22nd September, 2022
25 Twenty-fifth meeting 14th December, 2022
26 Twenty-sixth meeting 14th July, 2023
~ 413 ~
__________________________________________________________________________________
No. of Meetings Date, Time and Venue List of Participants

First meeting 1st December, 2021, 1. Pu F. Vanlalruata, Chairman
12:00 noon at the office 2nd MFC
chamber of the 2. Pu Lalmalsawma, Member
Chairman Secretary, 2nd MFC
3. Pu C. Lungmuanpuia, Under
Secretary, Finance Department
(FMC)
4. Pu Lalhmingsanga, Assistant,
Finance Department (FMC)
Second meeting 3rd March, 2022, 12:00 1. Pu F. Vanlalruata, Chairman
noon at the office 2nd MFC
3. Pu Vanlal Chhuanga, Principal
4. Pu Lalmalsawma, Secretary,
Planning & Programme
Implementation Deparment
5. Pu Lalhmingmawia Sailo, Addl.
6. Pu Lalrohlua, Deputy
Secretary, 2nd MFC
Third meeting 8th March, 2022, 11:30 1. Pu F. Vanlalruata, Chairman
AM at the office chamber 2nd MFC
of the Chairman 2. Pu Lalmalsawma, Member
Secretary, 2nd MFC
Secretary, 2nd MFC
Fourth meeting 21st March, 2022, 11:30 1. Pu F. Vanlalruata, Chairman
Secretary, 2nd MFC
Secretary, 2nd MFC
Secretary, 2nd MFC
Fifth meeting 25th March, 2022, 11:30 1. Pu F. Vanlalruata, Chairman
Secretary, 2nd MFC
Secretary, 2nd MFC
Sixth meeting 1st April, 2022 11:00 AM 1. Pu F. Vanlalruata, Chairman
~ 414 ~
Annexures
__________________________________________________________________________________
at the office chamber of 2nd MFC

the Chairman 2. Pu Lalmalsawma, Member
Secretary, 2nd MFC
Secretary, 2nd MFC
Seventh meeting 5th April, 2022 11:00 AM 1. Pu F. Vanlalruata, Chairman
Secretary, 2nd MFC
Secretary, 2nd MFC
Eight meeting 8th April, 2022,11:00 AM 1. Pu F. Vanlalruata, Chairman
Secretary, 2nd MFC
Secretary, 2nd MFC
Ninth meeting 13th April, 2022 11:30 1. Pu F. Vanlalruata, Chairman
Secretary, 2nd MFC
Secretary, 2nd MFC
Tenth meeting 19th April, 2022 11:30 1. Pu F. Vanlalruata, Chairman
Secretary, 2nd MFC
Secretary, 2nd MFC
Eleventh 25th April, 2022 11:30 1. Pu F. Vanlalruata, Chairman
meeting AM at the office chamber 2nd MFC
Secretary, 2nd MFC
Secretary, 2nd MFC
Twelfth meeting 2nd May, 2022 2:00 PM 1. Pu F. Vanlalruata, Chairman
Secretary, 2nd MFC
3. Dr. James L.T. Thanga,
Associate Professor, Economics
Department, Mizoram
University
Secretary, 2nd MFC
~ 415 ~
__________________________________________________________________________________
Thirteenth 18th May, 2022 11:00 AM 1. Pu F. Vanlalruata, Chairman

meeting at the office chamber of 2nd MFC
Secretary, 2nd MFC
Secretary, 2nd MFC
Fourteenth 26th May, 2022 11:30 AM 1. Pu F. Vanlalruata, Chairman
Secretary, 2nd MFC
Secretary, 2nd MFC
Fifteenth 31st May, 2022 1:00 PM 1. Pu F. Vanlalruata, Chairman
Secretary, 2nd MFC
Secretary, 2nd MFC
Sixteenth 10th June, 2022, 12:00 1. Pu F. Vanlalruata, Chairman
meeting noon at the office 2nd MFC
Secretary, 2nd MFC
Seventeenth 14th June, 2022 12:00 1. Pu F. Vanlalruata, Chairman
Secretary, 2nd MFC
Eighteenth 4th July, 2022 12:00 1. Pu F. Vanlalruata, Chairman
Secretary, 2nd MFC
Nineteenth 15th July, 2022 11:30 AM 1. Pu F. Vanlalruata, Chairman
Secretary, 2nd MFC
3. Pi Rita Lalnunmawii Pachuau,
Director, LAD
4. Pu R. Vanlalsawta, Joint
Secretary, LAD
5. Pu Lalchawimawia, Joint
Director, LAD
~ 416 ~
Annexures
__________________________________________________________________________________
Secretary, 2nd MFC
Twentieth 4th August, 2022 11:30 1. Pu F. Vanlalruata, Chairman

Secretary, 2nd MFC
3. Pu Lalmalsawma Pachuau,
Secretary, UD&PA
4. Pu H. Lianzela, Director,
UD&PA
5. Pu V. Lalengmawia, Joint
Secretary, UD&PA
6. Pu Chuauhnuna, Deputy
Secretary, UD&PA
7. Pu H.V.L. Zarzoenga, Joint
Director(P), UD&PA
8. Pu Malsawmzuala, Joint
Director(A), UD&PA
Secretary, 2nd MFC
Twenty-first 12th August, 2022 11:30 1. Pu F. Vanlalruata, Chairman
Secretary, 2nd MFC
3. Dr. Lalrozama, Secretary,
DC&MA
4. Pu R. Vanlalsawta, Joint
Secretary, DC&MA
5. Pu Robert C. Lalhmangaiha,
Deputy Secretary, DC&MA
Secretary, 2nd MFC
7. Pi R. Lalhunmawii, Under
Secretary, DC&MA
Twenty-second 19th August, 2022 11:00 1. Pu F. Vanlalruata, Chairman
meeting AM at the National 2nd MFC
Informatics Centre, 2. Pu Lalmalsawma, Member
Aizawl Secretary, 2nd MFC
3. Pu James Lalrinchhana,
Deputy Commissioner,
Champhai
Secretary, 2nd MFC
5. Pu Lalnunfela Chawngthu,
~ 417 ~
__________________________________________________________________________________
SDO (Sadar), Champhai

6. Pi R. Lalnunkimi, DUDO,
Champhai
7. Pi Esther Leihang, DLAO,
Champhai
8. Pu Larry Lalbiaktluanga, RAO,
DRDA, Champhai
9. Pu Lallawmkima, DIPRO,
Champhai
10. Pu R.C. Rodawla, President
Village Council, Zote
11. Pu C. Lalhmingmawia,
President, Village Council,
Hmunhmeltha
12. Pu K. Rothanga, President,
Village Council, Venthlamg
North
13. Pu Vanchhunga, President,
Village Council, Tlangsam
14. Pu T. Thanga, President,
Village Council, Bethel
15. Pu Lalthansanga, President,
Village Council, Kanan
16. Pu F. Laldingliana, President,
Village Council, Kahrawt
17. Pu Lalnuntluanga, President,
Village Council, Mualveng
18. Pu Lalparmawia, President,
Village Council, Dinthar
19. Pu C. Lalbiakvela, President,
Village Council, New Champhai
20. Pu Ramthanga, President,
Village Council, Zion Veng
21. Pu Lalroruata, President,
Village Council, Vengthar
22. Pu TC Vanlalchaka, Secretary,
Village Council, Vengthlang
23. Pu Lalpawlthara, Treasurer,
Village Council, Chhungte
24. Pu K. Zamlova, President,
Village Council, Venglai
25. Pu R. Lalbiakkunga, President,
Village Council, Vengsang
Twenty-third 8 September, 2022 2:00 1. Pu F. Vanlalruata, Chairman
th
meeting PM at the National 2nd MFC

Informatics Centre, 2. Pu Lalmalsawma, Member
~ 418 ~
Annexures
__________________________________________________________________________________
Aizawl Secretary, 2nd MFC

3. Pu John LT Sanga, Deputy
Commissioner, Kolasib
Secretary, 2nd MFC
5. Pu Vanlalchhuanawma
Chawngthu, SDO (Sadar),
Kolasib
6. Pu Lalmuan Puia, DUDO,
Kolasib
7. Pu S.T. Lalhmingmawia,
DLAO, Kolasib
8. Pi Esther Lalhlimpuii, ARDO,
DRDA, Kolasib
9. Pu Lalhrilliana, LAO, LAD
10. Pu T.C. Lalthangzova,
President, Village Council
11. Pu Lalruatkima, Vice-
President, Village Council
12. Pi Lalnunziri, Vice-President,
Village Council
13. Pu Lalrammawia, Member,
Village Council
14. Pu H. Lalzarliana, President,
Village Council
15. Pu Lalruatsanga, President,
Village Council
16. Pu R. Lalsiammuana,
Electric Veng
17. Pu T. Lalrinzuala, President,
Village Council, Venglai East
18. Pu C. Rothuamluaia,
President, Kolasib Joint Village
Council
19. H. Lalsawmliana, Secretary,
Village Council, Saidan
20. Pu Laltlankima, President,
Village Council, Hmar Veng
21. Vanlalnghakthlenga, Secretary,
Village Council, New Diakkawn
22. Pu Joshua Lalremsanga,
Secretary, Village Council,
Khuangpuilam
~ 419 ~
__________________________________________________________________________________
Twenty-fourth 22nd September, 2022 List of Participants joining the

meeting 11:00 AM at the National meeting from NIC, Aizawl
Informatics Centre, 1. Pu F. Vanlalruata, Chairman
Aizawl 2nd MFC
2. Pu Lalmalsawma, Member
Secretary, 2nd MFC
Secretary, 2nd MFC
4. Pu F. Vanlalhruaitluanga, LDC
2nd MFC
List of Participants joining the

meeting from NIC, Aizawl
District
1. Ethel Rothangpuii, Projector
Director, DRDA
2. Isaac C. Lalrempuia, Sub-
Divisional Officer (Sadar),
Aizawl
3. Lalhruaitluangi, District Local
Administration Officer
4. Lalchhanhimi, Assistant
Commissioner
5. Lalrawngbawla, President,
Village Council,
Thingsulthliah-II
6. Lalropuia Pachuau, President,
Village Council, Sihphir
7. R. Lalremliana, President,
Village Council,
Thingsulthliah-I
8. T. Lalhmunsanga, President,
Village Council, Hualngohmun
9. R. Vanlaldika, Treasurer,
Village Council, Aibawk
10. David Lalliantluanga,
Aibawk
11. Lawmzuala, Vice President,
Village Council, Darlawn
12. Lalthangluaia, Finance
Secretary, Aizawl District
Village Council Association

meeting from NIC, Lunglei
District
~ 420 ~
Annexures
__________________________________________________________________________________
1. V. Lalruatliana, Additional
Deputy Commissioner
2. P.C. Zonuntluangi, District
Local Administration Officer
3. Vanthangpuii, District Urban
Development Officer
4. L.P. Lallianzuala, President,
Village Council, Rahsi Veng
5. K. Zodinsanga, President,
Village Council, Serkawn
6. V. Vanlalhriata, President,
Village Council, Lunglawn
7. C. Lalbiakvela, President,
Village Council, Electric Veng
8. Lalramzauva, President, Village
Council, Zobawk 'N'
9. C. Biakthankima, President,
Village Council, Bazar Veng
10. H. Lalbiakmuani, President,
Village Council, Zobawk 'S'
11. M.S Dawngliana President,
Village Council, Pukpui
12. K. Lalmuanpuia, President,
Village Council,
Hrangchalkawn
13. Lalhmangaihzuali, President,
Village Council, Venglai
14. PC. Lalramnghaka, President,
Village Council, Sethlun
15. H. Lalremruata, President,
Village Council, Farm Veng
16. Joseph Lalhriatpuia Sailo,
Salem Veng
17. Jerry R. Vanlalnghaka,
Member, Village Council,
Theiriat

meeting from NIC, Mamit
District
1. Lalfakzuala, Additional Deputy

Commissioner
2. H.D. Lalpekmawia, Project
Director, DRDA
~ 421 ~
__________________________________________________________________________________
3. K. Tlangruala, District Local

4. Lalthakima, President, Village
Council, Bazar Veng
5. Lalropuia, President, Mamit
District Village Council
Association
6. P. Zahmingthanga, President,
Village Council, Hmar Veng
7. R.D. Darthanzauva, President,
Village Council, Luangpawl
8. M.S. Dawngkima Treasurer,
Village Council, New Mamit

meeting from NIC, Serchhip
District
1. Lalmuansanga Ralte Additional

Deputy Commissioner
2. Malsawmtluanga, Project
Director, DRDA
3. Lalzikpuii, Sub-Divisional
Officer (Sadar)
4. F. Lalnisai, District Local
5. R. Lalmuankimi,
Superintendent
6. Lawmzuali, Manager, UD&PA
7. Lalfakawma, President, Village
Council, Field Veng
8. Lalzuiliana, President,
Serchhip District Village
9. Isaac Vanlalhruaia, Council
Association Secretary, Village
Council, Darnam
10. F. Lalramzauva, Financial
Secretary, Serchhip District
11. Varlianmawia, Treasurer,
Council Association
12. R.C. Lalhruaitluanga
Chhiahtlang 'N'
13. Rengliana, President, Village
Council, New Serchhip ‘S’
~ 422 ~
Annexures
__________________________________________________________________________________
14. H. Lalrinawma, Member,

Village Council, Chhiahtlang
"S"
15. Ramdinpuia, Treasurer, Village
Council, Dinthar
16. Isaac Malsawmtluanga Vice
Chanmari
17. Lalrotlinga, Secretary, Village
Council, Hmar Veng
18. J. Lalnunfela, Treasurer,
Village Council, Serchhip,
Kawnpui North
19. R. Lalmuansanga, Secy, Village
Council, Chhim Veng
20. Ramzauva, President, Village
Council, Chhuanthar
21. V. Tlangthuama, President,
Village Council, Serchhip,
Kawnpui
22. B. Vanlaingura, Secretary,
Council Association
23. F. Vanlalropuia, Secretary,
Village Council, P&E Veng
24. Remtharmawia, Secretary,
Village Council, New Serchhip
North

meeting from DC, Hnahthial
District
1. Dr. Lalramdintluanga, Sub-
Deputy Commissioner
2. P.C. Vanlalliana, Vice
President, Hnahthial District
3. K. Lalthanzuala, Member,
Village Council, Hnahthial
North-I
4. Lalthanliana Mualchin,
Bualpui H
5. J. Lalsanglura, President,
Village Council, Leite
6. F.C. Lalrinliana, President,
~ 423 ~
__________________________________________________________________________________
South-II
7. R. Lalrinawma, President,
Village Council, Pangzawl
8. P.C. Lalthankunga, South
Rawpui
9. H. Lalsawmliana, Vice
Pangzawl North
10. H.C. Laltlangmawii Treasurer,
Village Council, Khawhri
11. C. Lallianzuali, Treasurer,
South I
12. B. Lalromawia, Vice President,
North-II
13. V. Lalbiakliana, Vice President,
South-II
14. F.C. Laldinthara, President,
Hnahthial District Village
Council Association
15. H. Lalchamliana, President,
Village Council, Rotlang
16. Lalthangzuala, President,
Village Council, Darzo
17. C. Lalpekliana, Village Council,
S. Vanlaiphai
18. C. Zanghaka, President, Village
Council, Muallianpui

meeting from DC, Khawzawl
District
1. James Lalnithanga, Sub-
Divisional Officer (Sadar)
2. B. Lalhmangaihtluanga
Inspector of Sanitation, DUDO
3. C.Biakchungnunga, Accounts
Manager, DRDA
4. C. Vanlalhruaia, UDC, DLAO,
Champhai
5. M. Kaptluanga, President,
Village Council, Electric Veng
6. Lalzahminga, President, Village
Council, Lungvar
~ 424 ~
Annexures
__________________________________________________________________________________
7. Vanlalzawna Khiangte,
Zuchhip
8. H.P. Chhawntluanga,
Zaingen
9. K. Vanlalsiama, President,
Village Council, Khawzawl Arro
10. P.C. Lalromawia, Secretary,
Khawzawl District Village
Council Association
11. Rohlupuia, Committee
Member, Khawzawl District
12. Lalnunpuia, President, Village
Council, Vengthar
13. Lalfakzuala, President, Village
Council, Darngawn
14. Lalhmunsanga, Secretary,
Village Council, Kawnzar
Twenty-fifth 14th December, 2022 1. Pu F. Vanlalruata, Chairman

meeting 11:00 AM at the office 2nd MFC
3. Dr. James L.T. Thanga,
Associate Professor, Economics
Department, Mizoram
University
Secretary, 2nd MFC
Twenty-sixth 14 July, 2023, 2.00 PM 1. Pu F. Vanlalruata, Chairman
th

Secretary, 2nd MFC
Secretary, 2nd MFC
~ 425 ~
__________________________________________________________________________________
Annexure 3.2
(Para 3.27)
WORKSHOP ON STATE FINANCES, RESOURCE MOBILISATION FOR

LOCAL BODIES AND TERMS OF REFERENCE OF THE COMMISSION
Workshop Date, Time and Venue List of Participants

Workshop on State 18th October, 2022 10:30 1. Pu F. Vanlalruata, The
Finances, Resource AM at the Aijal Club, Chairman
mobilization for Aizawl 2. Pu Lalmalsawma, Member
Secretary, 2nd MFC
local bodies and
3. Prof. J.V. Hluna, Vice
Terms of Reference
President, Former
of the Commission
LegislatorsAssociation of
Mizoram
4. R. Lalrinawma, General
Secretary, Former
LegislatorsAssociation of
Mizoram
5. Vanlal Chhuanga, Principal
Secretary, Finance/
TaxationDepartments
6. Dr. Lalrozama, Secretary,
District Council &
MinorityAffairs Department
7. Ramchuana, Additional
Secretary, Finance
8. Lalhmingmawia Sailo,
Additional Secretary, Finance
9. Kailiana Ralte, Commissioner
of State Taxes
10. R. Vanlalsawta, Joint
Secretary, Local
AdministrationDepartment
11. Dr. Margaret Z. Khiangte,
Associate Professor,
PachhungaUniversity College
12. Dr. K. Laldailova, Associate
Professor,
PachhungaUniversity College
13. Lalmalsawmi, Associate
Professor, Govt. J.
ThankimaCollege
14. Dr. Lalchhuanmawia,
President, Mizoram
EconomicAssociation
15. Lalthansanga, Joint
Commissioner of State Taxes
16. Chuauhnuna, Deputy
Secretary, Urban
Development& Poverty
~ 426 ~
Annexures
__________________________________________________________________________________
Alleviation
17. Laldinpuia, Deputy Secretary,
Finance
18. Robert C. Lalhmangaiha,
Deputy Secretary, District
Council &Minority Affairs
Department
19. R. Vanrengpuia Secretary,
Lunglei Municipal Council
20. Khuangthansanga
Pakhuangte, Associate
Professor, SIRD&PR
21. S. Lalmuanpuii, Deputy
Secretary, Finance, Mara
22. Malsawmzuala, Joint Director,
Urban Development &Poverty
Alleviation
23. Lalrohlua, Deputy Secretary,
2nd MFC
24. C. Lungmuanpuia, Under
Secretary, 2nd MFC
25. Isak L. Chuaungo, Finance
Economist cum Under
Secretary, Planning &
Programme
ImplementationDepartment
26. F. Lalremmawia, Deputy
Director (Accounts), Local
Administration Department
27. B. Vanlalruati, Deputy
Director, Economics &
Statistics
28. Pratap Chhetri, Deputy
Director, Information & Public
Relations
29. Lalthlamuana Ralte, Assistant
Professor, Pachhunga
University College
30. Dr. Daniel Lalawmpuia,
Assistant Professor,
Pachhunga University College
31. Lalmuansangi, Assistant
Professor, Govt. Aizawl College
32. C. Sangthuamluaia, Assistant
Professor, Govt. Aizawl North
College
33. Dr. Lalthanthuami, Finance &
Accounts Officer, Aizawl
Municipal Corporation
34. Vanlalkhumtiri, Research
~ 427 ~
__________________________________________________________________________________
Officer, Planning &

Programme Implementation
Department
35. Bijoy Kanti Ch a, Finance &
Accounts Officer, Chakma
36. H. Vanlaltluanga, Accounts
Officer, Lai Autonomous
District Council
37. John Kenneth Syhly,
Education Officer, Mara
38. D. Huanneihmawia, Local
Administration Officer, Lai
39. Lalropuia Pachuau, President,
All Mizoram Village Council
Association
40. Lallawmthanga, General
Secretary, Representative of
All Mizoram Village Council
Association
41. R. Lalhmingmawia,
Representative of All Mizoram
42. Stephen C. Lalrosanga,
Assistant Accounts Officer,
Lai Autonomous District
Council
43. B.L. Khuhly, Assistant
Accounts Officer, Mara
44. Tuanmuansanga, Research
Scholar, Mizoram University
45. Ashley Lalremruati, Research
46. P.C. Remlalhruaii, Research
47. Robert Lalramhluna,
Assistant, 2nd MFC
48. Lalhmingsanga, Assistant,
Finance (Finance Commission
& Monitoring Cell)
49. V. Laltlanthangi, Upper
Division Clerk, Finance
(FinanceCommission &
Monitoring Cell)
50. Lalpiangthari Zote, PA to
Member Secretary 2nd MFC
51. Jenny Lawmsangpuii, PA to
The Chairman
~ 428 ~
Annexures
__________________________________________________________________________________
52. Biakhluni, Lower Division

Clerk, 2nd MFC
53. Zothansangi, Lower Division
Clerk, 2nd MFC
54. K. Lalthanchami, Lower
Division Clerk, 2nd MFC
55. F. Vanlalhruaitluanga, Lower
Division Clerk, 2nd MFC
~ 429 ~
__________________________________________________________________________________
Annexure 3.3
(Para 3.28)
Sl. No. Consultative meetings during the course Date

of field visits
1 Meeting with representative of Saitual 29th June, 2022
District Village Council Association and
selected heads of offices on the visit of
2nd SFC
2 Meeting with Aizawl Municipal 22nd July, 2022
Corporation (AMC)
3 Consultative Meeting with Aizawl City 22nd July, 2022
Local Council Association
Meetings Date, Time and Venue List of Participants

District level 29th June, 2022 11:30 AM 1. Pu F. Vanlalruata,
consultative at the DC Conference hall, Chairman 2nd MFC
meeting during Saitual District 2. Pu Lalmalsawma,
the visit of the 2nd Member Secretary, 2nd
Mizoram Finance MFC
Commission to 3. Pu V.L. Hruaizela
Saitual District Khiangte, DC, Saitual
Secretary, 2nd MFC
5. Pi Lalhruaitluangi, DLAO,
Aizawl
6. Pu Andy Lalfakzuala
Varte, SDO(Sadar),
Saitual
7. Pu R.L. Zidinga, DUDO,
Saitual
8. Dr. Albert Vanlalruata,
SDC, Saitual
9. Pi Helen Zomuanthangi,
ARDO, DRDA, Saitual
10. Pu Ramchhuanmawia
President, Saitual District
Village Council
Association
11. Pu F. Lalrohlua,
Secretary, Saitual District
Village Council
Association
12. Pu Lalawmpuia, Asst.
Secretary, Saitual District
Village Council
Association
~ 430 ~
Annexures
__________________________________________________________________________________
13. Pu V. Lalhruaitluanga,
Vice-President, Saitual
VC-I
14. Pu Vanlalchhuanga,
Secretary, Saitual VC-III
15. Pu Lalnunthara,
President, Keifang
Venghlun VC
16. Pu H. Lalremtluanga,
President, Keifang Leitan
17. Pu M.S. Dawngzela,
Secretary, Ruallung VC
18. Pu Smith Lalruatfela,
President, Rulchawm VC
19. Pu Lalbiaktlinga,
President, Sihfa VC
Consultative 22nd July, 2022 2:00 PM at 1. Pu F. Vanlalruata, The

meeting during the AMC Conference hall, Chairman
the visit of the 2nd Aizawl 2. Pu Lalmalsawma,
Mizoram Finance Member Secretary, 2nd
Commission to MFC
Aizawl Municipal 3. Pu Lalrinenga Sailo,
Corporation (AMC) Mayor, AMC
4. Pu R. Thanglura, Deputy
Mayor, AMC
5. Pu Lalringliana, Executive
Councillor, AMC
6. Pu Laltlanzova Khiangte,
Executive Councillor,
AMC
7. Pi B. Lalawmpuii,
AMC
8. Pu H. Zonunsanga,
AMC
9. Pi C. Lalchhandami,
Councillor, AMC
10. Pu Rosiamngheta,
Councillor, AMC
11. Pu John Zosangliana
Ralte, Councillor, AMC
12. Pu Vanlalneia, Councillor,
AMC
13. Pi Christina Roluahpuii
~ 431 ~
__________________________________________________________________________________
Sailo, Councillor, AMC

14. Pi Chuauzikpuii,
Councillor, AMC
15. Pu Lalfakzuala Chenkual,
Councillor, AMC
16. Pi Ramthanzauvi,
Councillor, AMC
17. Pi Zodingpuii, Councillor,
AMC
18. Pi R. Lalawmpuii,
Councillor, AMC
19. Pi Baryl Vanneihsangi,
Councillor, AMC
20. Pu Zothanmawia,
Municipal Commissioner,
AMC
21. Pu H. Lalhmingthanga,
Joint Municipal
Commissioner
Secretary, 2nd MFC
23. Pu Zohmingthanga,
Executive Engineer
24. Pi Baby Zohmingliani,
Town Planner
25. Pu K. Vanlalruata, Asst.
Municipal Commissioner
(IT)
26. Pu R. Lalmuanpuia, Asst.
Engineer
27. Pi Veronica
Vanlalhriatpuii Colney,
Asst. Architect
28. Pu C. Lalmalsawma, Asst.
Town Planner
29. Pu Vanlalthlana Royte,
Superintendent
Consultative 22nd July, 2022, 5:00 PM at 1. Pu F. Vanlalruata, The

Meeting With the AMC Conference hall, Chairman
Aizawl City Local Aizawl 2. Pu Lalmalsawma,
Council Member Secretary, 2nd
Association during MFC
the visit of 2nd 3. Pu H. Lalhmingthanga,
Mizoram Finance Joint Municipal
Commission Commissioner, Aizawl
~ 432 ~
Annexures
__________________________________________________________________________________
Secretary, 2nd MFC
5. Pu V. Lallungmuana,
Vice-President, ACLCA &
Chairman, Thuampui
Local Council
6. Pu Vanlalhruaia, General
Secretary, ACLCA &
Member, Dawrpui
Vengthar Local Council
7. Pu R. Lalthlamuana,
Secretary, ACLCA &
Chairman, Tuithiang
Local Council
8. Pu Zoremtluanga,
Treasurer, ACLCA & Vice-
Chairman, Kulikawn
Local Council
~ 433 ~
Annexure 9.1
(Para 9.31)
Calculation of deprivation index for the years 2021-22 and 2022-23 from the gap report of Mission Antyodaya 2020
CSC
PDS
Banks
District
Project
Libraries
Business
Harvesting
Post Office
Electricity For
Grain Storage
Domestic Use
Middle School
Drinking Water
Correspondent
Internet Facility
Primary School
Public Transport
All Weather Road

Deprivation index
Health Sub Centre
Survey completed
Panchayat Bhawan
Aanganwadi Centre
{Combined ratio/20}
Warehouse For Food

Internal Pucca Roads
No. of Villages Where

Community Rain Water
Combined ratio of gaps
Watershed Development
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Aizawl 69 1 3 41 26 60 18 8 15 17 0 50 24 23 55 56 34 48 8 20 0
Gap ratio 0.01 0.04 0.59 0.38 0.87 0.26 0.12 0.22 0.25 0 0.72 0.35 0.33 0.8 0.81 0.49 0.7 0.12 0.29 0 7.35 0.37
Lunglei 113 0 13 98 82 115 44 41 48 68 4 108 75 85 116 117 91 80 24 57 2
Gap ratio 0 0.12 0.87 0.73 1.02 0.39 0.36 0.42 0.6 0.04 0.96 0.66 0.75 1.03 1.04 0.81 0.71 0.21 0.5 0.02 11.22 0.56
Kolasib 56 1 4 28 38 49 1 4 0 3 0 35 17 27 46 29 32 20 5 13 0
Gap ratio 0.02 0.07 0.5 0.68 0.88 0.02 0.07 0 0.05 0 0.63 0.3 0.48 0.82 0.52 0.57 0.36 0.09 0.23 0 6.29 0.31
Champhai 62 1 6 39 41 53 19 10 15 18 1 48 23 21 54 50 27 37 3 23 0
Gap ratio 0.02 0.1 0.63 0.66 0.85 0.31 0.16 0.24 0.29 0.02 0.77 0.37 0.34 0.87 0.81 0.44 0.6 0.05 0.37 0 7.89 0.39
~ 434 ~
Mamit 90 6 20 69 67 89 31 28 35 37 3 87 63 66 90 86 70 64 19 40 5
Gap ratio 0.07 0.22 0.77 0.74 0.99 0.34 0.31 0.39 0.41 0.03 0.97 0.7 0.73 1 0.96 0.78 0.71 0.21 0.44 0.06 10.83 0.54
Serchhip 54 3 3 28 35 46 24 7 3 20 0 38 27 14 42 38 31 40 2 17 0
Gap ratio 0.06 0.06 0.52 0.65 0.85 0.44 0.13 0.06 0.37 0 0.7 0.5 0.26 0.78 0.7 0.57 0.74 0.04 0.31 0 7.74 0.39
Saitual 44 0 0 26 26 32 9 8 4 16 0 36 22 6 36 38 19 18 5 9 0
Gap ratio 0 0 0.59 0.59 0.73 0.2 0.18 0.09 0.36 0 0.82 0.5 0.14 0.82 0.86 0.43 0.41 0.11 0.2 0 7.05 0.35
Khawzawl 38 3 5 17 29 33 6 7 2 24 1 32 18 5 33 31 17 21 2 10 0
Gap ratio 0.08 0.13 0.45 0.76 0.87 0.16 0.18 0.05 0.63 0.03 0.84 0.47 0.13 0.87 0.82 0.45 0.55 0.05 0.26 0 7.79 0.39
Hnahthial 32 0 3 27 24 26 6 5 1 15 0 26 5 8 29 17 21 2 13 32 1
Gap ratio 0 0.09 0.84 0.75 0.81 0.19 0.16 0.03 0.47 0 0.81 0.16 0.25 0.91 0.53 0.66 0.06 0.41 1 0.03 8.16 0.41
Lawngtlai 183 12 68 142 154 169 108 96 120 129 49 162 115 175 176 166 149 150 97 122 28
Gap ratio 0.07 0.37 0.78 0.84 0.92 0.59 0.52 0.66 0.7 0.27 0.89 0.63 0.96 0.96 0.91 0.81 0.82 0.53 0.67 0.15 13.04 0.65
Siaha 93 3 30 76 72 64 50 40 29 28 3 62 29 89 87 80 59 70 6 35 3
Gap ratio 0.03 0.32 0.82 0.77 0.69 0.54 0.43 0.31 0.3 0.03 0.67 0.31 0.96 0.94 0.86 0.63 0.75 0.06 0.38 0.03 9.84 0.49
Note: The figures in Column 3 to 22 indicates the non-availability of 20 basic facilities in villages across all the districts based on the Mission Antyodaya Survey report; CSC-Common Service
Centres, PDS-Public Distribution System
__________________________________________________________________________________
Annexure 9.2
(Para 9.31)
Calculation of deprivation index for the years 2023-24 and onwards from the gap report of Mission Antyodaya 2020
CSC
PDS
gaps
Roads
Banks
District
ratio/20}
Libraries
Business
completed
Watershed
Post Office
{Combined
Development
Electricity For
Where Survey
Domestic Use
Internal Pucca
No. of Villages
Middle School
Warehouse For
Drinking Water
Correspondent
Internet Facility
Primary School
Community Rain
Water Harvesting
All Weather Road
Public Transport
Deprivation index
Health Sub Centre

Combined ratio of
Panchayat Bhawan
Aanganwadi Centre
Food Grain Storage

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
69 1 3 41 26 60 18 8 15 17 0 50 24 23 55 56 34 48 8 20 0
Aizawl
Gap ratio 0.01 0.04 0.59 0.38 0.87 0.26 0.12 0.22 0.25 0 0.72 0.35 0.33 0.8 0.81 0.49 0.7 0.12 0.29 0 7.35 0.37
89 4 7 47 32 68 26 17 25 28 12 64 38 38 72 74 52 68 28 41 22
Lunglei
Gap ratio 0.05 0.08 0.52 0.36 0.76 0.3 0.19 0.28 0.32 0.13 0.72 0.43 0.43 0.81 0.83 0.59 0.76 0.32 0.46 0.25 8.59 0.43
56 1 4 28 38 49 1 4 0 3 0 35 17 27 46 29 32 20 5 13 0
Kolasib
Gap ratio 0.02 0.07 0.5 0.68 0.88 0.02 0.07 0 0.05 0 0.63 0.3 0.48 0.82 0.52 0.57 0.36 0.09 0.23 0 6.29 0.31
62 1 6 39 41 53 19 10 15 18 1 48 23 21 54 50 27 37 3 23 0
Champhai
Gap ratio 0.02 0.1 0.63 0.66 0.85 0.31 0.16 0.24 0.29 0.02 0.77 0.37 0.34 0.87 0.81 0.44 0.6 0.05 0.37 0 7.89 0.39
~ 435 ~
90 6 20 69 67 89 31 28 35 37 3 87 63 66 90 86 70 64 19 40 5
Mamit
Gap ratio 0.07 0.22 0.77 0.74 0.99 0.34 0.31 0.39 0.41 0.03 0.97 0.7 0.73 1 0.96 0.78 0.71 0.21 0.44 0.06 10.83 0.54
54 3 3 28 35 46 24 7 3 20 0 38 27 14 42 38 31 40 2 17 0
Serchhip
Gap ratio 0.06 0.06 0.52 0.65 0.85 0.44 0.13 0.06 0.37 0 0.7 0.5 0.26 0.78 0.7 0.57 0.74 0.04 0.31 0 7.74 0.39
44 0 0 26 26 32 9 8 4 16 0 36 22 6 36 38 19 18 5 9 0
Saitual
Gap ratio 0 0 0.59 0.59 0.73 0.2 0.18 0.09 0.36 0 0.82 0.5 0.14 0.82 0.86 0.43 0.41 0.11 0.2 0 7.05 0.35
38 3 5 17 29 33 6 7 2 24 1 32 18 5 33 31 17 21 2 10 0
Khawzawl
Gap ratio 0.08 0.13 0.45 0.76 0.87 0.16 0.18 0.05 0.63 0.03 0.84 0.47 0.13 0.87 0.82 0.45 0.55 0.05 0.26 0 7.79 0.39
32 0 3 27 24 26 6 5 1 15 0 26 5 8 29 17 21 2 13 32 1
Hnahthial
Gap ratio 0 0.09 0.84 0.75 0.81 0.19 0.16 0.03 0.47 0 0.81 0.16 0.25 0.91 0.53 0.66 0.06 0.41 1 0.03 8.16 0.41
183 12 68 142 154 169 108 96 120 129 49 162 115 175 176 166 149 150 97 122 28
Lawngtlai
Gap ratio 0.07 0.37 0.78 0.84 0.92 0.59 0.52 0.66 0.7 0.27 0.89 0.63 0.96 0.96 0.91 0.81 0.82 0.53 0.67 0.15 13.04 0.65
93 3 30 76 72 64 50 40 29 28 3 62 29 89 87 80 59 70 6 35 3
Siaha
Gap ratio 0.03 0.32 0.82 0.77 0.69 0.54 0.43 0.31 0.3 0.03 0.67 0.31 0.96 0.94 0.86 0.63 0.75 0.06 0.38 0.03 9.84 0.49
Note: The figures in Column 3 to 22 indicates the non-availability of 20 basic facilities in villages across all the districts based on the Mission Antyodaya Survey report; CSC-Common Service
Centres, PDS-Public Distribution System
__________________________________________________________________________________
Annexures
__________________________________________________________________________________
Annexure 9.3
(Para 9.41)
2nd stage of 2nd level horizontal devolution across Village Councils in Aizawl
district
Development distance
development distance
Inter se share in % as
Distance from highest
distribution formula
80% weightage to
20% weightage to
Antyodaya 2020)
Score (Mission
Village Council
Distribution of
Distribution of
per horizontal
Population
population
population
Sl. No.
score
1 2 3 4 5 6 7 8 9 10 11
1 Aibawk 1607 0.0153 1.22 54 16 16 0.0101 0.20 1.42
2 Chamring 380 0.0036 0.29 43 27 27 0.0171 0.34 0.63
3 Chawilung 660 0.0063 0.50 33 37 37 0.0234 0.47 0.97
4 Chhanchhuahna 260 0.0025 0.20 34 36 36 0.0228 0.46 0.65
Khawpui
5 Darlawn Chhim 720 0.0068 0.55 51 19 19 0.0120 0.24 0.79
veng
6 Darlawn Venghlun 3062 0.0291 2.33 62 8 8 0.0051 0.10 2.43
7 Darlawn Vengpui 3050 0.0290 2.32 65 5 5 0.0032 0.06 2.38
8 Darlawng 699 0.0066 0.53 48 22 22 0.0139 0.28 0.81
9 East Damdiai 370 0.0035 0.28 33 37 37 0.0234 0.47 0.75
10 East Phaileng 1548 0.0147 1.18 37 33 33 0.0209 0.42 1.59
11 Falkawn 2050 0.0195 1.56 63 7 7 0.0044 0.09 1.65
12 Hmuifang 373 0.0035 0.28 46 24 24 0.0152 0.30 0.59
13 Hmunnghak 391 0.0037 0.30 47 23 23 0.0145 0.29 0.59
14 Hualngohmun 381 0.0036 0.29 50 20 20 0.0126 0.25 0.54
15 Kelsih 863 0.0082 0.66 57 13 13 0.0082 0.16 0.82
16 Kepran 950 0.0090 0.72 37 33 33 0.0209 0.42 1.14
17 Khawpuar 670 0.0064 0.51 46 24 24 0.0152 0.30 0.81
18 Khawruhlian 2797 0.0266 2.13 59 11 11 0.0070 0.14 2.27
19 Lamchhip 961 0.0091 0.73 50 20 20 0.0126 0.25 0.98
20 Lengpui 3920 0.0372 2.98 70 0 5 0.0032 0.06 3.04
21 Lungleng I 914 0.0087 0.69 52 18 18 0.0114 0.23 0.92
22 Lungsei 312 0.0030 0.24 30 40 40 0.0253 0.51 0.74
23 Lungsum 733 0.0070 0.56 32 38 38 0.0240 0.48 1.04
24 Maubuang 735 0.0070 0.56 56 14 14 0.0088 0.18 0.74
25 Mauchar 1330 0.0126 1.01 25 45 45 0.0284 0.57 1.58
26 Melriat 1114 0.0106 0.85 54 16 16 0.0101 0.20 1.05
27 Muallungthu 1459 0.0139 1.11 51 19 19 0.0120 0.24 1.35
28 Muthi 1000 0.0095 0.76 54 16 16 0.0101 0.20 0.96
29 N. Lungleng 872 0.0083 0.66 46 24 24 0.0152 0.30 0.97
~ 436 ~
Annexures
__________________________________________________________________________________
30 N.Khawdungsei 269 0.0026 0.20 20 50 50 0.0316 0.63 0.84

31 N.Serzawl 896 0.0085 0.68 49 21 21 0.0133 0.27 0.95
32 N.Tinghmun 1263 0.0120 0.96 45 25 25 0.0158 0.32 1.28
33 New Vervek 850 0.0081 0.65 44 26 26 0.0164 0.33 0.97
34 Palsang 484 0.0046 0.37 36 34 34 0.0215 0.43 0.80
35 Pehlawn 900 0.0086 0.68 43 27 27 0.0171 0.34 1.03
36 Phulmawi 298 0.0028 0.23 37 33 33 0.0209 0.42 0.64
37 Phulpui 1301 0.0124 0.99 47 23 23 0.0145 0.29 1.28
38 Ratu 2845 0.0270 2.16 50 20 20 0.0126 0.25 2.42
39 Sailam 958 0.0091 0.73 53 17 17 0.0107 0.21 0.94
40 Sailutar 795 0.0076 0.60 48 22 22 0.0139 0.28 0.88
41 Sairang 3995 0.0380 3.04 57 13 13 0.0082 0.16 3.20
42 Sairang Dinthar 1792 0.0170 1.36 41 29 29 0.0183 0.37 1.73
43 Sairang Sihhmui 911 0.0087 0.69 43 27 27 0.0171 0.34 1.03
44 Sakawrdai 4820 0.0458 3.66 36 34 34 0.0215 0.43 4.09
45 Samlukhai 1558 0.0148 1.18 56 14 14 0.0088 0.18 1.36
46 Samtlang 1703 0.0162 1.29 53 17 17 0.0107 0.21 1.51
47 Sateek 1040 0.0099 0.79 54 16 16 0.0101 0.20 0.99
48 Sawleng 2070 0.0197 1.57 48 22 22 0.0139 0.28 1.85
49 Seling 2871 0.0273 2.18 57 13 13 0.0082 0.16 2.35
50 Sesawng I 2061 0.0196 1.57 58 12 12 0.0076 0.15 1.72
51 Sesawng II 2392 0.0227 1.82 54 16 16 0.0101 0.20 2.02
52 Sesawng III 792 0.0075 0.60 38 32 32 0.0202 0.40 1.01
53 Sialsuk 2150 0.0204 1.63 55 15 15 0.0095 0.19 1.82
54 Sihphir 8113 0.0771 6.17 67 3 5 0.0032 0.06 6.23
55 Sihphir Venghlun 4622 0.0439 3.51 48 22 22 0.0139 0.28 3.79
56 Sumsuih 893 0.0085 0.68 53 17 17 0.0107 0.21 0.89
57 Sunhluchhip 855 0.0081 0.65 36 34 34 0.0215 0.43 1.08
58 Tachhip 1216 0.0116 0.92 49 21 21 0.0133 0.27 1.19
59 Thiak 857 0.0081 0.65 50 20 20 0.0126 0.25 0.90
60 Thingsat 305 0.0029 0.23 31 39 39 0.0247 0.49 0.72
61 Thingsul 1685 0.0160 1.28 56 14 14 0.0088 0.18 1.46
Tlangnuam
62 Thingsulthliah - I 3402 0.0323 2.59 56 14 14 0.0088 0.18 2.76
63 Thingsulthliah - II 1784 0.0170 1.36 50 20 20 0.0126 0.25 1.61
64 Tlungvel 2913 0.0277 2.21 48 22 22 0.0139 0.28 2.49
65 Tuirial 1150 0.0109 0.87 52 18 18 0.0114 0.23 1.10
66 Tuirial Airfield 949 0.0090 0.72 51 19 19 0.0120 0.24 0.96
67 Vaitin 1530 0.0145 1.16 38 32 32 0.0202 0.40 1.57
68 Zohmun 1462 0.0139 1.11 44 26 26 0.0164 0.33 1.44
69 Zokhawthiang 312 0.0030 0.24 19 51 51 0.0322 0.64 0.88
105243 1.00 80.00 1582 1.00 20.00 100.00
~ 437 ~
__________________________________________________________________________________
Annexure 9.4A
(Para 9.41)
2nd stage of 2nd level horizontal devolution across Village Councils in Lunglei
district for the years 2021-22 and 2022-23
80% weightage to
20% weightage to
Antyodaya 2020)
Village Council
Score (Mission
Distribution of
Distribution of
per horizontal
Population
population
population
Sl. No.
score
1 2 3 4 5 6 7 8 9 10 11
1 Belpei 1256 0.0086 0.69 28 40 40 0.0117 0.23 0.92
2 Belthei 738 0.0050 0.40 29 39 39 0.0114 0.23 0.63
3 Bolia 738 0.0050 0.40 29 39 39 0.0114 0.23 0.63
4 Bualte 460 0.0031 0.25 53 15 15 0.0044 0.09 0.34
5 Buarpui 1446 0.0099 0.79 59 9 9 0.0026 0.05 0.84
6 Buknuam 490 0.0033 0.27 22 46 46 0.0135 0.27 0.54
7 Bunghmun West 1248 0.0085 0.68 39 29 29 0.0085 0.17 0.85
8 Bungtlang West 285 0.0019 0.16 37 31 31 0.0091 0.18 0.34
9 Changpui 480 0.0033 0.26 41 27 27 0.0079 0.16 0.42
10 Chawilung S 560 0.0038 0.31 21 47 47 0.0138 0.28 0.58
11 Chawngte L 1320 0.0090 0.72 46 22 22 0.0064 0.13 0.85
12 Chengkawllui 1002 0.0068 0.55 26 42 42 0.0123 0.25 0.79
13 Chengpui 165 0.0011 0.09 36 32 32 0.0094 0.19 0.28
14 Chithar 250 0.0017 0.14 45 23 23 0.0067 0.13 0.27
15 College Veng 1324 0.0090 0.72 45 23 23 0.0067 0.13 0.86
16 Dawn 495 0.0034 0.27 39 29 29 0.0085 0.17 0.44
17 Dengsur 679 0.0046 0.37 38 30 30 0.0088 0.18 0.55
18 Diblibagh 1969 0.0135 1.08 30 38 38 0.0111 0.22 1.30
19 Electric Veng 4989 0.0341 2.73 55 13 13 0.0038 0.08 2.80
20 Farm Veng 2328 0.0159 1.27 62 6 8 0.0023 0.05 1.32
21 Haulawng 2627 0.0179 1.44 62 6 8 0.0023 0.05 1.48
22 Hauruang 1440 0.0098 0.79 45 23 23 0.0067 0.13 0.92
23 Hlumte 235 0.0016 0.13 22 46 46 0.0135 0.27 0.40
24 Hmundo 142 0.0010 0.08 15 53 53 0.0155 0.31 0.39
25 Hmuntlang 145 0.0010 0.08 33 35 35 0.0102 0.20 0.28
26 Hrangchalkawn 1054 0.0072 0.58 49 19 19 0.0056 0.11 0.69
27 Kalapani 991 0.0068 0.54 13 55 55 0.0161 0.32 0.86
28 Kauchhuah 710 0.0049 0.39 18 50 50 0.0146 0.29 0.68
~ 438 ~
Annexures
__________________________________________________________________________________
29 Kawlhawk 137 0.0009 0.07 33 35 35 0.0102 0.20 0.28

30 Khawlek S 160 0.0011 0.09 35 33 33 0.0097 0.19 0.28
31 Khawmawi 1470 0.0100 0.80 36 32 32 0.0094 0.19 0.99
32 Khojoysury 602 0.0041 0.33 28 40 40 0.0117 0.23 0.56
33 Laisawral 525 0.0036 0.29 38 30 30 0.0088 0.18 0.46
34 Lalnutui 371 0.0025 0.20 19 49 49 0.0143 0.29 0.49
35 Luangmual 2400 0.0164 1.31 55 13 13 0.0038 0.08 1.39
36 Lungchem 450 0.0031 0.25 38 30 30 0.0088 0.18 0.42
37 Lungdai South 249 0.0017 0.14 33 35 35 0.0102 0.20 0.34
38 Lunglawn 3730 0.0255 2.04 62 6 8 0.0023 0.05 2.09
39 Lunglei Bazar 5318 0.0363 2.91 62 6 8 0.0023 0.05 2.95
Veng
40 Lunglei 6869 0.0469 3.75 68 0 8 0.0023 0.05 3.80
Chanmari
41 Lungpuizawl 872 0.0060 0.48 49 19 19 0.0056 0.11 0.59
42 Lungrang S 1850 0.0126 1.01 40 28 28 0.0082 0.16 1.18
43 Lungsen I 1295 0.0088 0.71 38 30 30 0.0088 0.18 0.88
44 Lungsen II 1761 0.0120 0.96 33 35 35 0.0102 0.20 1.17
45 Malsury 1016 0.0069 0.56 22 46 46 0.0135 0.27 0.82
46 Mamte 670 0.0046 0.37 33 35 35 0.0102 0.20 0.57
47 Marpara S 3687 0.0252 2.02 40 28 28 0.0082 0.16 2.18
48 Mausen 367 0.0025 0.20 46 22 22 0.0064 0.13 0.33
49 Mautlang 380 0.0026 0.21 12 56 56 0.0164 0.33 0.54
(Lungsen)
50 Mauzam 682 0.0047 0.37 23 45 45 0.0132 0.26 0.64
51 Mualcheng S 910 0.0062 0.50 42 26 26 0.0076 0.15 0.65
52 Mualthuam N 1582 0.0108 0.86 51 17 17 0.0050 0.10 0.96
53 Mualthuam S 620 0.0042 0.34 26 42 42 0.0123 0.25 0.58
54 New Sachan 1060 0.0072 0.58 25 43 43 0.0126 0.25 0.83
55 Nunsury I 1019 0.0070 0.56 28 40 40 0.0117 0.23 0.79
56 Nunsury II 744 0.0051 0.41 23 45 45 0.0132 0.26 0.67
57 Phairuangkai 1707 0.0117 0.93 44 24 24 0.0070 0.14 1.07
58 Puankhai 1175 0.0080 0.64 27 41 41 0.0120 0.24 0.88
59 Pukpui 2084 0.0142 1.14 55 13 13 0.0038 0.08 1.22
60 Putlungasih 1588 0.0108 0.87 38 30 30 0.0088 0.18 1.04
61 Rahsi Veng 4794 0.0328 2.62 55 13 13 0.0038 0.08 2.70
62 Ralvawng 513 0.0035 0.28 22 46 46 0.0135 0.27 0.55
63 Ramlaitui 625 0.0043 0.34 47 21 21 0.0061 0.12 0.46
64 Ramthar Veng 5745 0.0393 3.14 54 14 14 0.0041 0.08 3.22
65 Rangte 956 0.0065 0.52 24 44 44 0.0129 0.26 0.78
66 Rotlang W 705 0.0048 0.39 29 39 39 0.0114 0.23 0.61
~ 439 ~
__________________________________________________________________________________
67 Rualalung 548 0.0037 0.30 18 50 50 0.0146 0.29 0.59

68 Runtung 252 0.0017 0.14 27 41 41 0.0120 0.24 0.38
69 Sachan 618 0.0042 0.34 27 41 41 0.0120 0.24 0.58
70 Sailen 164 0.0011 0.09 15 53 53 0.0155 0.31 0.40
71 Sairep 286 0.0020 0.16 25 43 43 0.0126 0.25 0.41
72 Salem 1770 0.0121 0.97 57 11 11 0.0032 0.06 1.03
73 Sazaikawn 786 0.0054 0.43 50 18 18 0.0053 0.11 0.54
74 Sekhum 362 0.0025 0.20 43 25 25 0.0073 0.15 0.34
75 Serkawn 2580 0.0176 1.41 54 14 14 0.0041 0.08 1.49
76 Serte 451 0.0031 0.25 42 26 26 0.0076 0.15 0.40
77 Sertlangpui 525 0.0036 0.29 45 23 23 0.0067 0.13 0.42
78 Sesawm 452 0.0031 0.25 31 37 37 0.0108 0.22 0.46
79 Sethlun 1175 0.0080 0.64 60 8 8 0.0023 0.05 0.69
80 Silkur 370 0.0025 0.20 18 50 50 0.0146 0.29 0.49
81 Sumasumi 534 0.0036 0.29 25 43 43 0.0126 0.25 0.54
82 Tablabagh 1421 0.0097 0.78 26 42 42 0.0123 0.25 1.02
83 Tawipui N - I 730 0.0050 0.40 42 26 26 0.0076 0.15 0.55
84 Tawipui N – II 820 0.0056 0.45 33 35 35 0.0102 0.20 0.65
85 Tawipui S 1580 0.0108 0.86 54 14 14 0.0041 0.08 0.95
86 Thaizawl 391 0.0027 0.21 53 15 15 0.0044 0.09 0.30
87 Thangpui 152 0.0010 0.08 18 50 50 0.0146 0.29 0.38
88 Thangte / 173 0.0012 0.09 27 41 41 0.0120 0.24 0.33
Thangpui
89 Thehlep 85 0.0006 0.05 32 36 36 0.0105 0.21 0.26
90 Theiriat 2179 0.0149 1.19 54 14 14 0.0041 0.08 1.27
91 Thenhlum 1330 0.0091 0.73 45 23 23 0.0067 0.13 0.86
92 Thingfal 1602 0.0109 0.88 47 21 21 0.0061 0.12 1.00
93 Thlengang 250 0.0017 0.14 30 38 38 0.0111 0.22 0.36
94 Thuampui 535 0.0037 0.29 49 19 19 0.0056 0.11 0.40
95 Tiperegahat 1482 0.0101 0.81 33 35 35 0.0102 0.20 1.01
96 Tlabung 4620 0.0316 2.53 36 32 32 0.0094 0.19 2.71
97 Tualthu 715 0.0049 0.39 37 31 31 0.0091 0.18 0.57
98 Tuichawng 3828 0.0262 2.09 39 29 29 0.0085 0.17 2.26
99 Tuikawi 994 0.0068 0.54 28 40 40 0.0117 0.23 0.78
100 Tuisenchhuah 407 0.0028 0.22 31 37 37 0.0108 0.22 0.44
101 Upper Lungrang 445 0.0030 0.24 26 42 42 0.0123 0.25 0.49
S
102 Vaisam 400 0.0027 0.22 40 28 28 0.0082 0.16 0.38
103 Vanhne 865 0.0059 0.47 46 22 22 0.0064 0.13 0.60
104 Venghlun 2034 0.0139 1.11 55 13 13 0.0038 0.08 1.19
~ 440 ~
Annexures
__________________________________________________________________________________
105 Venglai 4045 0.0276 2.21 54 14 14 0.0041 0.08 2.29

106 Zawlpui 1812 0.0124 0.99 31 37 37 0.0108 0.22 1.21
(Lungsen)
107 Zehtet 800 0.0055 0.44 14 54 54 0.0158 0.32 0.75
108 Zobawk N 1731 0.0118 0.95 44 24 24 0.0070 0.14 1.09
109 Zobawk S 2275 0.0155 1.24 62 6 8 0.0023 0.05 1.29
110 Zodin 2603 0.0178 1.42 41 27 27 0.0079 0.16 1.58
111 Zohnuai 1718 0.0117 0.94 53 15 15 0.0044 0.09 1.03
112 Zotlang 2632 0.0180 1.44 53 15 15 0.0044 0.09 1.53
113 Zotuitlang 580 0.0040 0.32 46 22 22 0.0064 0.13 0.45
146361 1.0000 80.00 3416 1.0000 20.00 100.00
~ 441 ~
__________________________________________________________________________________
Annexure 9.4B
(Para 9.41)
2nd stage of 2nd level horizontal devolution across Village Councils in Lunglei
district for the years 2023-24 and onwards
Inter se share in %
80% weightage to
20% weightage to
as per horizontal
Antyodaya 2020)
Village Council
Score (Mission
Distribution of
Distribution of
Distance from
highest score
Development
development
development
Population
population
population
distance
distance
distance
Sl. No.
1 2 3 4 5 6 7 8 9 10 11
1 Belpei 1256 0.0156 1.25 28 34 34 0.0133 0.27 1.51
2 Belthei 738 0.0092 0.73 29 33 33 0.0129 0.26 0.99
3 Bolia 738 0.0092 0.73 29 33 33 0.0129 0.26 0.99
4 Bualte 460 0.0057 0.46 53 9 9 0.0035 0.07 0.53
5 Buarpui 1446 0.0179 1.44 59 3 8 0.0031 0.06 1.50
6 Buknuam 490 0.0061 0.49 22 40 40 0.0156 0.31 0.80
7 Bunghmun West 1248 0.0155 1.24 39 23 23 0.0090 0.18 1.42
8 Bungtlang West 285 0.0035 0.28 37 25 25 0.0098 0.20 0.48
9 Changpui 480 0.0060 0.48 41 21 21 0.0082 0.16 0.64
10 Chawilung S 560 0.0070 0.56 21 41 41 0.0160 0.32 0.88
11 Chawngte L 1320 0.0164 1.31 46 16 16 0.0063 0.13 1.44
12 Chengkawllui 1002 0.0124 1.00 26 36 36 0.0141 0.28 1.28
13 Chengpui 165 0.0020 0.16 36 26 26 0.0102 0.20 0.37
14 Chithar 250 0.0031 0.25 45 17 17 0.0066 0.13 0.38
15 Dawn 495 0.0061 0.49 39 23 23 0.0090 0.18 0.67
16 Dengsur 679 0.0084 0.67 38 24 24 0.0094 0.19 0.86
17 Diblibagh 1969 0.0244 1.96 30 32 32 0.0125 0.25 2.21
18 Haulawng 2697 0.0335 2.68 62 0 8 0.0031 0.06 2.74
19 Hlumte 235 0.0029 0.23 22 40 40 0.0156 0.31 0.55
20 Hmundo 142 0.0018 0.14 15 47 47 0.0184 0.37 0.51
21 Hmuntlang 145 0.0018 0.14 33 29 29 0.0113 0.23 0.37
22 Kalapani 991 0.0123 0.98 13 49 49 0.0192 0.38 1.37
23 Kauchhuah 710 0.0088 0.71 18 44 44 0.0172 0.34 1.05
24 Kawlhawk 137 0.0017 0.14 33 29 29 0.0113 0.23 0.36
25 Khawlek S 160 0.0020 0.16 35 27 27 0.0106 0.21 0.37
26 Khawmawi 1470 0.0182 1.46 36 26 26 0.0102 0.20 1.66
27 Khojoysury 602 0.0075 0.60 28 34 34 0.0133 0.27 0.86
28 Laisawral 525 0.0065 0.52 38 24 24 0.0094 0.19 0.71
29 Lalnutui 371 0.0046 0.37 19 43 43 0.0168 0.34 0.70
~ 442 ~
Annexures
__________________________________________________________________________________
30 Lungchem 450 0.0056 0.45 38 24 24 0.0094 0.19 0.63

31 Lungdai South 249 0.0031 0.25 33 29 29 0.0113 0.23 0.47
32 Lungrang S 1850 0.0230 1.84 40 22 22 0.0086 0.17 2.01
33 Lungsen I 1295 0.0161 1.29 38 24 24 0.0094 0.19 1.47
34 Lungsen II 1761 0.0219 1.75 33 29 29 0.0113 0.23 1.98
35 Malsury 1016 0.0126 1.01 22 40 40 0.0156 0.31 1.32
36 Mamte 670 0.0083 0.67 33 29 29 0.0113 0.23 0.89
37 Marpara S 3687 0.0458 3.66 40 22 22 0.0086 0.17 3.83
38 Mausen 367 0.0046 0.36 46 16 16 0.0063 0.13 0.49
39 Mautlang 380 0.0047 0.38 12 50 50 0.0195 0.39 0.77
(Lungsen)
40 Mauzam 682 0.0085 0.68 23 39 39 0.0152 0.30 0.98
41 Mualcheng S 910 0.0113 0.90 42 20 20 0.0078 0.16 1.06
42 Mualthuam N 1582 0.0196 1.57 51 11 11 0.0043 0.09 1.66
43 Mualthuam S 620 0.0077 0.62 26 36 36 0.0141 0.28 0.90
44 New Sachan 1060 0.0132 1.05 25 37 37 0.0145 0.29 1.34
45 Nunsury I 1019 0.0126 1.01 28 34 34 0.0133 0.27 1.28
46 Nunsury II 744 0.0092 0.74 23 39 39 0.0152 0.30 1.04
47 Phairuangkai 1707 0.0212 1.70 44 18 18 0.0070 0.14 1.84
48 Puankhai 1175 0.0146 1.17 27 35 35 0.0137 0.27 1.44
49 Putlungasih 1588 0.0197 1.58 38 24 24 0.0094 0.19 1.76
50 Ralvawng 513 0.0064 0.51 22 40 40 0.0156 0.31 0.82
51 Ramlaitui 625 0.0078 0.62 47 15 15 0.0059 0.12 0.74
52 Rangte 956 0.0119 0.95 24 38 38 0.0149 0.30 1.25
53 Rotlang W 705 0.0088 0.70 28 34 34 0.0133 0.27 0.97
54 Rualalung 548 0.0068 0.54 18 44 44 0.0172 0.34 0.89
55 Runtung 252 0.0031 0.25 27 35 35 0.0137 0.27 0.52
56 Sachan 618 0.0077 0.61 27 35 35 0.0137 0.27 0.89
57 Sailen 164 0.0020 0.16 15 47 47 0.0184 0.37 0.53
58 Sairep 286 0.0036 0.28 25 37 37 0.0145 0.29 0.57
59 Sekhum 362 0.0045 0.36 43 19 19 0.0074 0.15 0.51
60 Serte 451 0.0056 0.45 42 20 20 0.0078 0.16 0.60
61 Sertlangpui 525 0.0065 0.52 45 17 17 0.0066 0.13 0.65
62 Sesawm 452 0.0056 0.45 31 31 31 0.0121 0.24 0.69
63 Silkur 370 0.0046 0.37 18 44 44 0.0172 0.34 0.71
64 Sumasumi 534 0.0066 0.53 25 37 37 0.0145 0.29 0.82
65 Tablabagh 1421 0.0176 1.41 26 36 36 0.0141 0.28 1.69
66 Tawipui N - I 730 0.0091 0.72 42 20 20 0.0078 0.16 0.88
67 Tawipui N – II 820 0.0102 0.81 33 29 29 0.0113 0.23 1.04
68 Tawipui S 1580 0.0196 1.57 54 8 8 0.0031 0.06 1.63
~ 443 ~
__________________________________________________________________________________
69 Thaizawl 391 0.0049 0.39 53 9 9 0.0035 0.07 0.46

70 Thangpui 152 0.0019 0.15 18 44 44 0.0172 0.34 0.49
71 Thangte 173 0.0021 0.17 27 35 35 0.0137 0.27 0.45
72 Thehlep 85 0.0011 0.08 32 30 30 0.0117 0.23 0.32
73 Thenhlum 1330 0.0165 1.32 45 17 17 0.0066 0.13 1.45
74 Thingfal 1602 0.0199 1.59 47 15 15 0.0059 0.12 1.71
75 Thlengang 250 0.0031 0.25 30 32 32 0.0125 0.25 0.50
76 Thuampui 535 0.0066 0.53 49 13 13 0.0051 0.10 0.63
77 Tiperegahat 1482 0.0184 1.47 33 29 29 0.0113 0.23 1.70
78 Tlabung 4620 0.0573 4.59 36 26 26 0.0102 0.20 4.79
79 Tualthu 715 0.0089 0.71 37 25 25 0.0098 0.20 0.91
80 Tuichawng 3828 0.0475 3.80 39 23 23 0.0090 0.18 3.98
81 Tuikawi 994 0.0123 0.99 28 34 34 0.0133 0.27 1.25
82 Tuisenchhuah 407 0.0051 0.40 31 31 31 0.0121 0.24 0.65
83 Upper Lungrang 445 0.0055 0.44 26 36 36 0.0141 0.28 0.72
S
84 Vaisam 400 0.0050 0.40 40 22 22 0.0086 0.17 0.57
85 Vanhne 865 0.0107 0.86 46 16 16 0.0063 0.13 0.98
86 Zawlpui 1812 0.0225 1.80 31 31 31 0.0121 0.24 2.04
(Lungsen)
87 Zehtet 800 0.0099 0.79 14 48 48 0.0188 0.38 1.17
88 Zodin 2603 0.0323 2.58 41 21 21 0.0082 0.16 2.75
89 Zotuitlang 580 0.0072 0.58 46 16 16 0.0063 0.13 0.70
80559 1.0000 80.00 2558 1.0000 20.00 100.00
~ 444 ~
Annexures
__________________________________________________________________________________
Annexure 9.5
(Para 9.41)
2nd stage of 2nd level horizontal devolution across Village Councils in Kolasib
district
Inter se share in %
80% weightage to
20% weightage to
as per horizontal
Antyodaya 2020)
Village Council
Score (Mission
Distribution of
Distribution of
Distance from
highest score
Development
development
development
Population
population
population
distance
distance
distance
Sl. No.
1 2 3 4 5 6 7 8 9 10 11
1 Bairabi N 4460 0.0402 3.22 58 12 12 0.0108 0.22 3.43
2 Bairabi S 2285 0.0206 1.65 55 15 15 0.0135 0.27 1.92
3 Bilkhawthlir N 2446 0.0221 1.76 62 8 8 0.0072 0.14 1.91
4 Bilkhawthlir S 2978 0.0269 2.15 57 13 13 0.0117 0.23 2.38
5 Bualpui North 1721 0.0155 1.24 49 21 21 0.0190 0.38 1.62
6 Buhchangphai 1920 0.0173 1.39 47 23 23 0.0208 0.42 1.80
7 Bukpui 1160 0.0105 0.84 56 14 14 0.0126 0.25 1.09
8 Bukvanne 620 0.0056 0.45 46 24 24 0.0217 0.43 0.88
9 Hortoki 3004 0.0271 2.17 47 23 23 0.0208 0.42 2.58
10 Kawnpui – I 2687 0.0242 1.94 57 13 13 0.0117 0.23 2.17
11 Kawnpui – II 1653 0.0149 1.19 47 23 23 0.0208 0.42 1.61
12 Kawnpui III 1785 0.0161 1.29 66 4 4 0.0036 0.07 1.36
13 Kawnpui 2603 0.0235 1.88 51 19 19 0.0171 0.34 2.22
Venglai
14 Khamrang 720 0.0065 0.52 50 20 20 0.0181 0.36 0.88
15 Kolasib College 1554 0.0140 1.12 56 14 14 0.0126 0.25 1.37
Veng
16 Kolasib 6039 0.0545 4.36 66 4 4 0.0036 0.07 4.43
Diakkawn
17 Kolasib Electric 1211 0.0109 0.87 54 16 16 0.0144 0.29 1.16
18 Kolasib Gosen 379 0.0034 0.27 38 32 32 0.0289 0.58 0.85
19 Kolasib 3482 0.0314 2.51 60 10 10 0.0090 0.18 2.69
Hmarveng
20 Kolasib 2010 0.0181 1.45 62 8 8 0.0072 0.14 1.59
Khuangpuilam
21 Kolasib New 2150 0.0194 1.55 58 12 12 0.0108 0.22 1.77
Diakkawn
22 Kolasib Project 1492 0.0135 1.08 62 8 8 0.0072 0.14 1.22
Veng
23 Kolasib 2062 0.0186 1.49 35 35 35 0.0316 0.63 2.12
Rengtekawn
24 Kolasib Saidan 880 0.0079 0.63 45 25 25 0.0226 0.45 1.09
25 Kolasib Tuitha 1515 0.0137 1.09 51 19 19 0.0171 0.34 1.44
~ 445 ~
__________________________________________________________________________________
Veng
26 Kolasib Tumpui 2049 0.0185 1.48 54 16 16 0.0144 0.29 1.77
27 Kolasib Venglai 4167 0.0376 3.01 70 0 4 0.0036 0.07 3.08
28 Kolasib Venglai 1687 0.0152 1.22 56 14 14 0.0126 0.25 1.47
East
29 Kolasib 3268 0.0295 2.36 57 13 13 0.0117 0.23 2.59
Vengthar
30 Lungdai 2573 0.0232 1.86 69 1 4 0.0036 0.07 1.93
31 Lungmuat 784 0.0071 0.57 52 18 18 0.0162 0.32 0.89
32 Meidum 1211 0.0109 0.87 38 32 32 0.0289 0.58 1.45
33 Mualkhang 5880 0.0530 4.24 47 23 23 0.0208 0.42 4.66
34 N.Chawnpui 602 0.0054 0.43 33 37 37 0.0334 0.67 1.10
35 N.Chhimluang 455 0.0041 0.33 33 37 37 0.0334 0.67 1.00
36 N.Hlimen 1715 0.0155 1.24 53 17 17 0.0153 0.31 1.54
37 N.Thinglian 650 0.0059 0.47 17 53 53 0.0478 0.96 1.43
38 New Builum 532 0.0048 0.38 42 28 28 0.0253 0.51 0.89
39 Nisapui 972 0.0088 0.70 55 15 15 0.0135 0.27 0.97
40 North Chaltlang 810 0.0073 0.58 49 21 21 0.0190 0.38 0.96
-I
41 North Chaltlang 503 0.0045 0.36 47 23 23 0.0208 0.42 0.78
- II
42 Pangbalkawn 1969 0.0178 1.42 50 20 20 0.0181 0.36 1.78
43 Phainuam 1632 0.0147 1.18 48 22 22 0.0199 0.40 1.57
44 Phaisen 873 0.0079 0.63 45 25 25 0.0226 0.45 1.08
45 Saihapui K 1065 0.0096 0.77 43 27 27 0.0244 0.49 1.26
46 Saihapui V 295 0.0027 0.21 33 37 37 0.0334 0.67 0.88
47 Saiphai 2593 0.0234 1.87 44 26 26 0.0235 0.47 2.34
48 Saipum 2832 0.0255 2.04 49 21 21 0.0190 0.38 2.42
49 Serkhan 938 0.0085 0.68 56 14 14 0.0126 0.25 0.93
50 Thingdawl 3317 0.0299 2.39 59 11 11 0.0099 0.20 2.59
51 Thingthelh 742 0.0067 0.54 47 23 23 0.0208 0.42 0.95
52 Vairangte – I 3658 0.0330 2.64 48 22 22 0.0199 0.40 3.04
53 Vairengte – II 4804 0.0433 3.47 51 19 19 0.0171 0.34 3.81
54 Vairengte - IV 1500 0.0135 1.08 42 28 28 0.0253 0.51 1.59
State Veng
55 Vairengte III 2374 0.0214 1.71 46 24 24 0.0217 0.43 2.15
IOC Veng
56 Zanlawn 1605 0.0145 1.16 51 19 19 0.0171 0.34 1.50
110871 1.0000 80.00 1108 1.0000 20.00 100.00
~ 446 ~
Annexures
__________________________________________________________________________________
Annexure 9.6
(Para 9.41)
2nd stage of 2nd level horizontal devolution across Village Councils in

Champhai district
Score (Mission Antyodya
80% weightage to
20% weightage to
Village Council
Distribution of
Distribution of
per horizontal
Population
population
population
Sl. No.
score
2020)
1 2 3 4 5 6 7 8 9 10 11
1 Bethel 4411 0.0472 3.78 65 0 2 0.0019 0.04 3.82
2 Buang 450 0.0048 0.39 30 35 35 0.0334 0.67 1.05
3 Bulfekzawl 429 0.0046 0.37 43 22 22 0.0210 0.42 0.79
4 Bungzung 1382 0.0148 1.18 50 15 15 0.0143 0.29 1.47
5 Champhai Jail 275 0.0029 0.24 38 27 27 0.0258 0.52 0.75
Veng
6 Champhai 2017 0.0216 1.73 55 10 10 0.0096 0.19 1.92
Vengthar
7 Chawngtui E 307 0.0033 0.26 36 29 29 0.0277 0.55 0.82
8 Chhungte 277 0.0030 0.24 44 21 21 0.0201 0.40 0.64
9 Dilkawn 1147 0.0123 0.98 47 18 18 0.0172 0.34 1.33
10 Dinthar 1106 0.0118 0.95 57 8 8 0.0076 0.15 1.10
11 Dungtlang 1150 0.0123 0.99 49 16 16 0.0153 0.31 1.29
12 Electric Veng 2682 0.0287 2.30 57 8 8 0.0076 0.15 2.45
13 Farkawn 3842 0.0412 3.29 61 4 4 0.0038 0.08 3.37
14 Hmunhmeltha 1733 0.0186 1.49 53 12 12 0.0115 0.23 1.71
15 Hnahlan 3471 0.0372 2.97 56 9 9 0.0086 0.17 3.15
16 Hruaikawn 445 0.0048 0.38 28 37 37 0.0353 0.71 1.09
17 Kahrawt 3031 0.0325 2.60 65 0 2 0.0019 0.04 2.64
18 Kanan 2900 0.0311 2.49 51 14 14 0.0134 0.27 2.75
19 Kelkang 1329 0.0142 1.14 54 11 11 0.0105 0.21 1.35
20 Khankawn 773 0.0083 0.66 58 7 7 0.0067 0.13 0.80
21 Khawbung S 2258 0.0242 1.93 63 2 2 0.0019 0.04 1.97
22 Khuangleng 2101 0.0225 1.80 49 16 16 0.0153 0.31 2.11
23 Khuangphah 826 0.0088 0.71 35 30 30 0.0287 0.57 1.28
24 Khuangthing 1720 0.0184 1.47 55 10 10 0.0096 0.19 1.66
25 Leisenzo 1057 0.0113 0.91 62 3 3 0.0029 0.06 0.96
26 Leithum 622 0.0067 0.53 46 19 19 0.0181 0.36 0.90
27 Lianpui 684 0.0073 0.59 45 20 20 0.0191 0.38 0.97
~ 447 ~
__________________________________________________________________________________
28 Lungphunlian 330 0.0035 0.28 40 25 25 0.0239 0.48 0.76

29 Melbuk 673 0.0072 0.58 41 24 24 0.0229 0.46 1.04
30 Mualkawi 774 0.0083 0.66 50 15 15 0.0143 0.29 0.95
31 Murlen 527 0.0056 0.45 29 36 36 0.0344 0.69 1.14
32 N. Khawbung 1134 0.0121 0.97 48 17 17 0.0162 0.32 1.30
33 N.Diltlang 379 0.0041 0.32 29 36 36 0.0344 0.69 1.01
34 New Champhai 1280 0.0137 1.10 59 6 6 0.0057 0.11 1.21
35 New Hruaikawn 211 0.0023 0.18 38 27 27 0.0258 0.52 0.70
36 Ngur 2293 0.0246 1.96 53 12 12 0.0115 0.23 2.19
37 Ruantlang 1645 0.0176 1.41 64 1 2 0.0019 0.04 1.45
38 Ruantlang Mual 503 0.0054 0.43 44 21 21 0.0201 0.40 0.83
Veng
39 Samthang 624 0.0067 0.53 47 18 18 0.0172 0.34 0.88
40 Sazep 624 0.0067 0.53 47 18 18 0.0172 0.34 0.88
41 Selam 1259 0.0135 1.08 32 33 33 0.0315 0.63 1.71
42 Sesih 1248 0.0134 1.07 46 19 19 0.0181 0.36 1.43
43 Thekpui 439 0.0047 0.38 40 25 25 0.0239 0.48 0.85
44 Thekte 580 0.0062 0.50 31 34 34 0.0325 0.65 1.15
45 Tlangsam 2452 0.0263 2.10 60 5 5 0.0048 0.10 2.20
46 Tualcheng 802 0.0086 0.69 35 30 30 0.0287 0.57 1.26
47 Tuipui 478 0.0051 0.41 39 26 26 0.0248 0.50 0.91
48 Vaikhawtlang 1400 0.0150 1.20 43 22 22 0.0210 0.42 1.62
49 Vangchhia 1038 0.0111 0.89 43 22 22 0.0210 0.42 1.31
50 Vanzau 760 0.0081 0.65 50 15 15 0.0143 0.29 0.94
51 Vapar 1035 0.0111 0.89 40 25 25 0.0239 0.48 1.36
52 Vaphai 2675 0.0287 2.29 53 12 12 0.0115 0.23 2.52
53 Venglai 3177 0.0340 2.72 62 3 3 0.0029 0.06 2.78
54 Vengsang 3520 0.0377 3.02 57 8 8 0.0076 0.15 3.17
55 Vengthlang 6650 0.0712 5.70 61 4 4 0.0038 0.08 5.77
56 Vengthlang North 1558 0.0167 1.34 60 5 5 0.0048 0.10 1.43
57 Zawlsei 530 0.0057 0.45 47 18 18 0.0172 0.34 0.80
58 Zawngtetui 229 0.0025 0.20 32 33 33 0.0315 0.63 0.83
59 Zion Veng 1800 0.0193 1.54 51 14 14 0.0134 0.27 1.81
60 Zokhawthar 3570 0.0382 3.06 53 12 12 0.0115 0.23 3.29
61 Zote 1720 0.0184 1.47 55 10 10 0.0096 0.19 1.66
62 Zotlang East 3015 0.0323 2.58 57 8 8 0.0076 0.15 2.74
93357 1.0000 80.00 1047 1.0000 20.00 100.00
~ 448 ~
Annexures
__________________________________________________________________________________
Annexure 9.7
(Para 9.41)
2nd stage of 2nd level horizontal devolution across Village Councils in Mamit
district
80% weightage to
20% weightage to
Antyodya 2020)
Village Council
Score (Mission
Distribution of
Distribution of
per horizontal
Population
population
population
Sl. No.
score
1 2 3 4 5 6 7 8 9 10 11
1 Ailawng 722 0.0069 0.55 49 9 9 0.0049 0.10 0.65
2 Andermanik 1250 0.0120 0.96 14 44 44 0.0239 0.48 1.44
(Mamit)
3 Bawlte 368 0.0035 0.28 39 19 19 0.0103 0.21 0.49
4 Bawngthah 489 0.0047 0.37 43 15 15 0.0081 0.16 0.54
5 Bawngva 1101 0.0105 0.84 45 13 13 0.0071 0.14 0.99
6 Belkhai 542 0.0052 0.42 19 39 39 0.0212 0.42 0.84
7 Borai 1903 0.0182 1.46 46 12 12 0.0065 0.13 1.59
8 Bunghmun West 1300 0.0125 1.00 27 31 31 0.0168 0.34 1.33
(Zawlnuam)
9 Bungthuam 940 0.0090 0.72 47 11 11 0.0060 0.12 0.84
10 Chhippui - I 755 0.0072 0.58 43 15 15 0.0081 0.16 0.74
11 Chhippui - II 251 0.0024 0.19 40 18 18 0.0098 0.20 0.39
12 Chuhvel 568 0.0054 0.44 48 10 10 0.0054 0.11 0.54
13 Chungtlang 523 0.0050 0.40 42 16 16 0.0087 0.17 0.57
14 Damdiai 1508 0.0144 1.16 20 38 38 0.0206 0.41 1.57
15 Damparengpui 2957 0.0283 2.27 31 27 27 0.0147 0.29 2.56
16 Dampui 738 0.0071 0.57 32 26 26 0.0141 0.28 0.85
17 Dapchhuah 1480 0.0142 1.13 43 15 15 0.0081 0.16 1.30
18 Darlak 1345 0.0129 1.03 46 12 12 0.0065 0.13 1.16
19 Darlung 1550 0.0148 1.19 44 14 14 0.0076 0.15 1.34
20 Hmunpui 1260 0.0121 0.97 32 26 26 0.0141 0.28 1.25
21 Hnahva 1630 0.0156 1.25 23 35 35 0.0190 0.38 1.63
22 Hreichuk 322 0.0031 0.25 44 14 14 0.0076 0.15 0.40
23 Hriphaw 1208 0.0116 0.93 47 11 11 0.0060 0.12 1.05
24 Hruaitluang 607 0.0058 0.47 32 26 26 0.0141 0.28 0.75
25 Hruiduk 1320 0.0126 1.01 31 27 27 0.0147 0.29 1.30
26 Kanghmun 1220 0.0117 0.94 46 12 12 0.0065 0.13 1.07
27 Kanhmun 1875 0.0180 1.44 49 9 9 0.0049 0.10 1.53
~ 449 ~
__________________________________________________________________________________
28 Kawrtethawveng 2262 0.0217 1.73 53 5 5 0.0027 0.05 1.79

29 Kawrthah North 1575 0.0151 1.21 49 9 9 0.0049 0.10 1.30
30 Kawrthah South 1767 0.0169 1.35 38 20 20 0.0109 0.22 1.57
31 Khantlang 702 0.0067 0.54 22 36 36 0.0196 0.39 0.93
32 Khawhnai 534 0.0051 0.41 25 33 33 0.0179 0.36 0.77
33 Khawrihnim 970 0.0093 0.74 52 6 6 0.0033 0.07 0.81
34 Kolalian 1250 0.0120 0.96 25 33 33 0.0179 0.36 1.32
35 Lallen 973 0.0093 0.75 38 20 20 0.0109 0.22 0.96
36 Lengte 800 0.0077 0.61 51 7 7 0.0038 0.08 0.69
37 Lianbuang 396 0.0038 0.30 25 33 33 0.0179 0.36 0.66
(Bega Bekya)
38 Luangpawl 1400 0.0134 1.07 44 14 14 0.0076 0.15 1.23
39 Luimawi 570 0.0055 0.44 38 20 20 0.0109 0.22 0.65
40 Lungphun 416 0.0040 0.32 44 14 14 0.0076 0.15 0.47
41 Mamit Bazar 1120 0.0107 0.86 52 6 6 0.0033 0.07 0.92
veng
42 Mamit Chhim 2173 0.0208 1.67 58 0 3 0.0016 0.03 1.70
veng
43 Mamit Hmar 2345 0.0225 1.80 44 14 14 0.0076 0.15 1.95
veng
44 Mamit Venghlun 1531 0.0147 1.17 55 3 3 0.0016 0.03 1.21
45 Marpara Mizo 435 0.0042 0.33 35 23 23 0.0125 0.25 0.58
Veng
46 Marpara North 2432 0.0233 1.86 38 20 20 0.0109 0.22 2.08
47 Mualthuam 1467 0.0141 1.12 22 36 36 0.0196 0.39 1.52
48 Nalzawl 934 0.0089 0.72 34 24 24 0.0130 0.26 0.98
49 New Eden 682 0.0065 0.52 30 28 28 0.0152 0.30 0.83
50 New Mamit 1180 0.0113 0.90 57 1 3 0.0016 0.03 0.94
51 New West 2433 0.0233 1.86 51 7 7 0.0038 0.08 1.94
Phaileng
52 Nghalchawm 572 0.0055 0.44 43 15 15 0.0081 0.16 0.60
53 North Sabual 362 0.0035 0.28 25 33 33 0.0179 0.36 0.64
54 Parvatui 436 0.0042 0.33 30 28 28 0.0152 0.30 0.64
55 Phaizau 353 0.0034 0.27 34 24 24 0.0130 0.26 0.53
56 Phuldungsei 2496 0.0239 1.91 21 37 37 0.0201 0.40 2.31
57 Phuldungsei 800 0.0077 0.61 13 45 45 0.0244 0.49 1.10
Zampui
58 Phulpui West 960 0.0092 0.74 25 33 33 0.0179 0.36 1.09
59 Pukzing 562 0.0054 0.43 34 24 24 0.0130 0.26 0.69
60 Pukzing 497 0.0048 0.38 20 38 38 0.0206 0.41 0.79
Vengthar
61 Rajiv Nagar - I 2969 0.0284 2.28 22 36 36 0.0196 0.39 2.67
62 Rajiv Nagar – II 1572 0.0151 1.20 17 41 41 0.0223 0.45 1.65
~ 450 ~
Annexures
__________________________________________________________________________________
63 Rawpuichhip 1780 0.0171 1.36 58 0 3 0.0016 0.03 1.40

64 Reiek 1806 0.0173 1.38 57 1 3 0.0016 0.03 1.42
65 Rengdil 2099 0.0201 1.61 51 7 7 0.0038 0.08 1.68
66 Rulpuihlim 469 0.0045 0.36 51 7 7 0.0038 0.08 0.44
67 Saikhawthlir 851 0.0082 0.65 45 13 13 0.0071 0.14 0.79
(Zawlnuam)
68 Saithah 420 0.0040 0.32 47 11 11 0.0060 0.12 0.44
69 Serhmun West 20 0.0002 0.02 12 46 46 0.0250 0.50 0.52
70 Sihthiang 1072 0.0103 0.82 26 32 32 0.0174 0.35 1.17
71 Silsury E 2300 0.0220 1.76 28 30 30 0.0163 0.33 2.09
72 Silsury W 2315 0.0222 1.77 22 36 36 0.0196 0.39 2.17
73 South Sabual 703 0.0067 0.54 44 14 14 0.0076 0.15 0.69
74 Suarhliap 665 0.0064 0.51 31 27 27 0.0147 0.29 0.80
75 Thaidawr 933 0.0089 0.72 17 41 41 0.0223 0.45 1.16
76 Thinghlun 941 0.0090 0.72 43 15 15 0.0081 0.16 0.88
77 Tuahzawl 512 0.0049 0.39 43 15 15 0.0081 0.16 0.56
78 Tuidam 1988 0.0190 1.52 52 6 6 0.0033 0.07 1.59
79 Tuipuibari – I 2200 0.0211 1.69 23 35 35 0.0190 0.38 2.07
80 Tuirum 725 0.0069 0.56 29 29 29 0.0158 0.32 0.87
81 Tumpanglui 683 0.0065 0.52 36 22 22 0.0120 0.24 0.76
82 Vawngawnzo 509 0.0049 0.39 42 16 16 0.0087 0.17 0.56
83 West Lungdar 1034 0.0099 0.79 47 11 11 0.0060 0.12 0.91
84 West Phaileng 2392 0.0229 1.83 53 5 5 0.0027 0.05 1.89
85 West Serzawl 472 0.0045 0.36 41 17 17 0.0092 0.18 0.55
86 Zamuang 1267 0.0121 0.97 52 6 6 0.0033 0.07 1.04
87 Zawlnuam 1008 0.0097 0.77 50 8 8 0.0043 0.09 0.86
thuampui
88 Zawlnuam 2485 0.0238 1.90 54 4 4 0.0022 0.04 1.95
vengpui
89 Zawlpui 429 0.0041 0.33 38 20 20 0.0109 0.22 0.55
(Zawlnuam)
90 Zomuantlang 645 0.0062 0.49 11 47 47 0.0255 0.51 1.00
Total 104381 1.0000 80.00 1841 1.0000 20.00 100.00
~ 451 ~
__________________________________________________________________________________
Annexure 9.8
(Para 9.41)
2nd stage of 2nd level horizontal devolution across Village Councils in Serchhip
district
80% weightage to
20% weightage to
Antyodaya 2020)
Village Council
Score (Mission
Distribution of
Distribution of
per horizontal
Population
population
population
Sl. No.
score
1 2 3 4 5 6 7 8 9 10 11
1 Baktawng Vengpui 1620 0.0208 1.66 44 18 18 0.0225 0.45 2.11
2 Bawktlang 348 0.0045 0.36 40 22 22 0.0275 0.55 0.91
3 Buangpui 522 0.0067 0.54 43 19 19 0.0238 0.48 1.01
4 Bungtlang 2568 0.0330 2.64 49 13 13 0.0163 0.33 2.96
5 Chekawn 300 0.0039 0.31 48 14 14 0.0175 0.35 0.66
6 Chhiahtlang North 2910 0.0374 2.99 53 9 9 0.0113 0.23 3.21
7 Chhiahtlang South 2180 0.0280 2.24 52 10 10 0.0125 0.25 2.49
8 Chhingchhip 2191 0.0281 2.25 57 5 5 0.0063 0.13 2.38
9 Chhuanthar 2370 0.0304 2.43 49 13 13 0.0163 0.33 2.76
Tlangnuam
10 Darnam 1168 0.0150 1.20 50 12 12 0.0150 0.30 1.50
11 E.Lungdar 3815 0.0490 3.92 57 5 5 0.0063 0.13 4.04
12 Hmawngkawn 205 0.0026 0.21 37 25 25 0.0313 0.63 0.84
13 Hmuntha 852 0.0109 0.88 39 23 23 0.0288 0.58 1.45
14 Hmunzawl 596 0.0077 0.61 34 28 28 0.0350 0.70 1.31
15 Hriangtlang 665 0.0085 0.68 42 20 20 0.0250 0.50 1.18
16 Hualtu 1167 0.0150 1.20 44 18 18 0.0225 0.45 1.65
17 Kanghmun S 591 0.0076 0.61 44 18 18 0.0225 0.45 1.06
18 Keitum 2221 0.0285 2.28 59 3 3 0.0038 0.08 2.36
19 Khawbel 784 0.0101 0.81 41 21 21 0.0263 0.53 1.33
20 Khawlailung 2543 0.0327 2.61 62 0 2 0.0025 0.05 2.66
21 Khumtung 1299 0.0167 1.33 52 10 10 0.0125 0.25 1.58
22 Leng 900 0.0116 0.92 49 13 13 0.0163 0.33 1.25
23 Lungchhuan 803 0.0103 0.82 45 17 17 0.0213 0.43 1.25
24 Lungkawlh 824 0.0106 0.85 42 20 20 0.0250 0.50 1.35
25 Lungpho 914 0.0117 0.94 43 19 19 0.0238 0.48 1.41
26 Mualcheng 1735 0.0223 1.78 50 12 12 0.0150 0.30 2.08
27 Mualpui Chhingchhip 172 0.0022 0.18 48 14 14 0.0175 0.35 0.53
28 N.Vanlaiphai 4568 0.0587 4.69 61 1 2 0.0025 0.05 4.74
~ 452 ~
Annexures
__________________________________________________________________________________
29 Neihloh 384 0.0049 0.39 29 33 33 0.0413 0.83 1.22

30 New Serchhip N 2408 0.0309 2.47 58 4 4 0.0050 0.10 2.57
31 New Serchhip S 3414 0.0438 3.51 60 2 2 0.0025 0.05 3.56
32 Ngentiang 668 0.0086 0.69 42 20 20 0.0250 0.50 1.19
33 Piler 520 0.0067 0.53 41 21 21 0.0263 0.53 1.06
34 Rullam 650 0.0083 0.67 40 22 22 0.0275 0.55 1.22
35 Sailulak 1047 0.0134 1.08 50 12 12 0.0150 0.30 1.38
36 Serchhip – I 2061 0.0265 2.12 52 10 10 0.0125 0.25 2.37
37 Serchhip - II 1790 0.0230 1.84 47 15 15 0.0188 0.38 2.21
38 Serchhip – III 1208 0.0155 1.24 49 13 13 0.0163 0.33 1.57
39 Serchhip - IV 1415 0.0182 1.45 51 11 11 0.0138 0.28 1.73
40 Serchhip – V 1130 0.0145 1.16 55 7 7 0.0088 0.18 1.34
41 Serchhip Chanmari 1628 0.0209 1.67 49 13 13 0.0163 0.33 2.00
Veng
42 Serchhip VI 1320 0.0169 1.36 50 12 12 0.0150 0.30 1.66
43 Serchhip VII 1183 0.0152 1.22 48 14 14 0.0175 0.35 1.57
44 Serchhip VIII 2658 0.0341 2.73 53 9 9 0.0113 0.23 2.96
45 Sialhau 654 0.0084 0.67 29 33 33 0.0413 0.83 1.50
46 Sialsir 345 0.0044 0.35 40 22 22 0.0275 0.55 0.91
47 Thentlang 798 0.0102 0.82 49 13 13 0.0163 0.33 1.15
48 Thenzawl East 5585 0.0717 5.74 58 4 4 0.0050 0.10 5.84
49 Thenzawl Kanan 987 0.0127 1.01 51 11 11 0.0138 0.28 1.29
50 Thenzawl Vengthar 704 0.0090 0.72 44 18 18 0.0225 0.45 1.17
51 Thenzawl West 3011 0.0387 3.09 51 11 11 0.0138 0.28 3.37
52 Thinglian (Serchhip) 570 0.0073 0.59 53 9 9 0.0113 0.23 0.81
53 Vanchengte 126 0.0016 0.13 37 25 25 0.0313 0.63 0.76
54 Zote S 788 0.0101 0.81 32 30 30 0.0375 0.75 1.56
Total 77883 1.0000 80.00 799 1.0000 20.00 100.00
~ 453 ~
__________________________________________________________________________________
Annexure 9.9
(Para 9.41)
2nd stage of 2nd level horizontal devolution across Village Councils in Saitual
district
80% weightage to
20% weightage to
Antyodaya 2020)
Village Council
Score (Mission
Distribution of
Distribution of
per horizontal
Population
population
population
Sl. No.
score
1 2 3 4 5 6 7 8 9 10 11
1 Buhban 710 0.0116 0.93 47 17 17 0.0248 0.50 1.43
2 Changzawl 638 0.0104 0.84 37 27 27 0.0394 0.79 1.62
3 Chiahpui 1018 0.0167 1.33 48 16 16 0.0234 0.47 1.80
4 Daido 750 0.0123 0.98 36 28 28 0.0409 0.82 1.80
5 Dilkhan 285 0.0047 0.37 40 24 24 0.0350 0.70 1.07
6 Hliappui 1727 0.0283 2.26 45 19 19 0.0277 0.55 2.82
7 Hrianghmun 695 0.0114 0.91 43 21 21 0.0307 0.61 1.52
8 Kawlbem 1724 0.0282 2.26 49 15 15 0.0219 0.44 2.69
9 Keifang Leitan 1563 0.0256 2.05 64 0 2 0.0029 0.06 2.10
10 Keifang 1795 0.0294 2.35 62 2 2 0.0029 0.06 2.41
Venghlun
11 Keifang Venglai 1522 0.0249 1.99 63 1 2 0.0029 0.06 2.05
12 Khanpui 1778 0.0291 2.33 55 9 9 0.0131 0.26 2.59
13 Khawkawn 937 0.0153 1.23 43 21 21 0.0307 0.61 1.84
14 Khawlian 2091 0.0342 2.74 44 20 20 0.0292 0.58 3.32
15 Lailak 761 0.0125 1.00 39 25 25 0.0365 0.73 1.73
16 Lamherh 730 0.0119 0.96 46 18 18 0.0263 0.53 1.48
17 Lamzawl 405 0.0066 0.53 36 28 28 0.0409 0.82 1.35
18 Lenchim 364 0.0060 0.48 43 21 21 0.0307 0.61 1.09
19 Luangpawn 623 0.0102 0.82 24 40 40 0.0584 1.17 1.98
20 Maite 1265 0.0207 1.66 40 24 24 0.0350 0.70 2.36
21 Mimbung 2901 0.0475 3.80 54 10 10 0.0146 0.29 4.09
22 Mualpheng 1002 0.0164 1.31 54 10 10 0.0146 0.29 1.60
23 N. Khawlek 950 0.0155 1.24 42 22 22 0.0321 0.64 1.89
24 N. Lungpher 1109 0.0181 1.45 55 9 9 0.0131 0.26 1.71
25 NE 2120 0.0347 2.78 56 8 8 0.0117 0.23 3.01
Khawdungsei
26 NE. Tlangnuam 752 0.0123 0.98 47 17 17 0.0248 0.50 1.48
27 Ngopa 4416 0.0723 5.78 60 4 4 0.0058 0.12 5.90
~ 454 ~
Annexures
__________________________________________________________________________________
28 Pawlrang 1096 0.0179 1.43 54 10 10 0.0146 0.29 1.73

29 Phuaibuang 2601 0.0426 3.41 45 19 19 0.0277 0.55 3.96
30 Phullen 2395 0.0392 3.14 61 3 3 0.0044 0.09 3.22
31 Ruallung 1080 0.0177 1.41 55 9 9 0.0131 0.26 1.68
32 Rulchawm 1252 0.0205 1.64 56 8 8 0.0117 0.23 1.87
33 Saichal 1202 0.0197 1.57 52 12 12 0.0175 0.35 1.92
34 Saitual I 2412 0.0395 3.16 59 5 5 0.0073 0.15 3.30
35 Saitual II 2290 0.0375 3.00 54 10 10 0.0146 0.29 3.29
36 Saitual III 2083 0.0341 2.73 64 0 2 0.0029 0.06 2.79
37 Sihfa 1228 0.0201 1.61 52 12 12 0.0175 0.35 1.96
38 Suangpuilawn 2400 0.0393 3.14 51 13 13 0.0190 0.38 3.52
39 Tawizo 478 0.0078 0.63 40 24 24 0.0350 0.70 1.33
40 Teikhang 1875 0.0307 2.45 52 12 12 0.0175 0.35 2.81
41 Thanglailung 921 0.0151 1.21 46 18 18 0.0263 0.53 1.73
42 Tualbung 922 0.0151 1.21 42 22 22 0.0321 0.64 1.85
43 Vanbawng 1510 0.0247 1.98 46 18 18 0.0263 0.53 2.50
44 Zawngin 732 0.0120 0.96 35 29 29 0.0423 0.85 1.81
Total 61108 1.0000 80.00 685 1.0000 20.00 100.00
~ 455 ~
__________________________________________________________________________________
Annexure 9.10
(Para 9.41)

Khawzawl district
80% weightage to
20% weightage to
Antyodaya 2020)
Village Council
Score (Mission
Distribution of
Distribution of
per horizontal
Population
population
population
Sl. No.
score
1 2 3 4 5 6 7 8 9 10 11
1 Aiduzawl 321 0.0076 0.61 37 23 23 0.0473 0.95 1.55
2 Arro 171 0.0040 0.32 44 16 16 0.0329 0.66 0.98
3 Biate 2375 0.0560 4.48 52 8 8 0.0165 0.33 4.81
4 Chalrang 810 0.0191 1.53 51 9 9 0.0185 0.37 1.90
5 Chawngtlai 1829 0.0431 3.45 55 5 5 0.0103 0.21 3.66
6 Chhawrtui 1153 0.0272 2.18 48 12 12 0.0247 0.49 2.67
7 Dulte 975 0.0230 1.84 50 10 10 0.0206 0.41 2.25
8 Hmuncheng 367 0.0087 0.69 37 23 23 0.0473 0.95 1.64
9 Kawlkulh N 1350 0.0318 2.55 54 6 6 0.0123 0.25 2.79
10 Kawlkulh South 2537 0.0598 4.79 55 5 5 0.0103 0.21 4.99
11 Khawhai 2750 0.0649 5.19 50 10 10 0.0206 0.41 5.60
12 Khawzawl Arro 419 0.0099 0.79 48 12 12 0.0247 0.49 1.28
Veng
13 Khawzawl 1328 0.0313 2.51 55 5 5 0.0103 0.21 2.71
Darngawn
14 Khawzawl Dinthar 1450 0.0342 2.74 50 10 10 0.0206 0.41 3.15
15 Khawzawl Electric 744 0.0175 1.40 59 1 2 0.0041 0.08 1.49
16 Khawzawl 1658 0.0391 3.13 59 1 2 0.0041 0.08 3.21
Hermon
17 Khawzawl 870 0.0205 1.64 56 4 4 0.0082 0.16 1.81
Kawnzar
18 Khawzawl 3212 0.0758 6.06 60 0 2 0.0041 0.08 6.14
Vengthar
19 Khawzawl 1191 0.0281 2.25 48 12 12 0.0247 0.49 2.74
Zaingen
20 Khawzawl 1560 0.0368 2.94 58 2 2 0.0041 0.08 3.03
Zuchhip
21 Khualen 275 0.0065 0.52 43 17 17 0.0350 0.70 1.22
22 Lungtan 678 0.0160 1.28 47 13 13 0.0267 0.53 1.81
23 Lungvar 726 0.0171 1.37 41 19 19 0.0391 0.78 2.15
24 Neihdawn 760 0.0179 1.43 45 15 15 0.0309 0.62 2.05
25 New Chalrang 735 0.0173 1.39 49 11 11 0.0226 0.45 1.84
~ 456 ~
Annexures
__________________________________________________________________________________
26 Ngaizawl 1040 0.0245 1.96 44 16 16 0.0329 0.66 2.62

27 Pamchung 372 0.0088 0.70 33 27 27 0.0556 1.11 1.81
28 Puilo 528 0.0125 1.00 44 16 16 0.0329 0.66 1.65
29 Rabung 2067 0.0488 3.90 50 10 10 0.0206 0.41 4.31
30 Riangtlei 514 0.0121 0.97 30 30 30 0.0617 1.23 2.20
31 Sialhawk 2440 0.0576 4.60 57 3 3 0.0062 0.12 4.73
32 Tlangmawi 273 0.0064 0.52 32 28 28 0.0576 1.15 1.67
33 Tlangpui 1047 0.0247 1.98 42 18 18 0.0370 0.74 2.72
34 Tualpui 644 0.0152 1.22 51 9 9 0.0185 0.37 1.59
35 Tualte 1263 0.0298 2.38 45 15 15 0.0309 0.62 3.00
36 Vanchengpui 1082 0.0255 2.04 44 16 16 0.0329 0.66 2.70
37 Vangtlang 527 0.0124 0.99 45 15 15 0.0309 0.62 1.61
38 Vankal 356 0.0084 0.67 30 30 30 0.0617 1.23 1.91
Total 42397 1.0000 80.00 486 1.0000 20.00 100.00
~ 457 ~
__________________________________________________________________________________
Annexure 9.11
(Para 9.41)
Hnahthial district
Inter se share in %
80% weightage to
20% weightage to
as per horizontal
Antyodaya 2020)
Village Council
Score (Mission
Distribution of
Distribution of
Distance from
highest score
Development
development
development
Population
population
population
distance
distance
distance
Sl. No.
1 2 3 4 5 6 7 8 9 10 11
1 Aithur 200 0.0057 0.46 29 31 31 0.0616 1.23 1.69
2 Bualpui H 1054 0.0303 2.42 36 24 24 0.0477 0.95 3.38
3 Bualpui V 564 0.0162 1.30 39 21 21 0.0417 0.83 2.13
4 Cherhlun 2750 0.0790 6.32 51 9 9 0.0179 0.36 6.68
5 Chhipphir 1405 0.0404 3.23 49 11 11 0.0219 0.44 3.67
6 Darzo 1664 0.0478 3.82 50 10 10 0.0199 0.40 4.22
7 Denlung 131 0.0038 0.30 31 29 29 0.0577 1.15 1.45
8 Hnahthial N - I 2529 0.0727 5.81 60 0 2 0.0040 0.08 5.89
9 Hnahthial North II 1945 0.0559 4.47 58 2 2 0.0040 0.08 4.55
10 Hnahthial S - I 993 0.0285 2.28 53 7 7 0.0139 0.28 2.56
11 Hnahthial S - II 1687 0.0485 3.88 59 1 2 0.0040 0.08 3.96
12 Hnahthial South III 1253 0.0360 2.88 57 3 3 0.0060 0.12 3.00
13 Khawhri 450 0.0129 1.03 40 20 20 0.0398 0.80 1.83
14 Leite 829 0.0238 1.91 44 16 16 0.0318 0.64 2.54
15 Lungmawi 269 0.0077 0.62 29 31 31 0.0616 1.23 1.85
16 Lungpuitlang 177 0.0051 0.41 31 29 29 0.0577 1.15 1.56
17 Muallianpui 1252 0.0360 2.88 36 24 24 0.0477 0.95 3.83
18 New Kawnpui 98 0.0028 0.23 25 35 35 0.0696 1.39 1.62
(Hnahthial)
19 New Ngharchhip 545 0.0157 1.25 47 13 13 0.0258 0.52 1.77
20 Ngharchhip 318 0.0091 0.73 42 18 18 0.0358 0.72 1.45
21 Pangzawl North 1339 0.0385 3.08 46 14 14 0.0278 0.56 3.63
22 Pangzawl South 2036 0.0585 4.68 52 8 8 0.0159 0.32 5.00
23 Phaileng S 329 0.0095 0.76 37 23 23 0.0457 0.91 1.67
24 Rawpui 989 0.0284 2.27 51 9 9 0.0179 0.36 2.63
25 Rotlang East 760 0.0218 1.75 42 18 18 0.0358 0.72 2.46
26 S.Chawngtui 756 0.0217 1.74 40 20 20 0.0398 0.80 2.53
27 S.Lungleng 170 0.0049 0.39 32 28 28 0.0557 1.11 1.50
28 South Vanlaiphai 2635 0.0757 6.06 59 1 2 0.0040 0.08 6.14
29 Tarpho 432 0.0124 0.99 42 18 18 0.0358 0.72 1.71
30 Thiltlang 1399 0.0402 3.22 56 4 4 0.0080 0.16 3.37
31 Thingsai 2846 0.0818 6.54 44 16 16 0.0318 0.64 7.18
32 Tuipui D 1003 0.0288 2.31 54 6 6 0.0119 0.24 2.54
Total 34807 1.0000 80.00 503 1.0000 20.00 100.00
~ 458 ~
Annexures
__________________________________________________________________________________
Annexure 9.12
(Para 9.41)
2nd stage of 2nd level horizontal devolution across Village Councils in Siaha
district
80% weightage to
20% weightage to
Antyodaya 2020)
Village Council
Score (Mission
Distribution of
Distribution of
per horizontal
Population
population
population
Sl. No.
score
1 2 3 4 5 6 7 8 9 10 11
1 AHMYPI 220 0.0028 0.23 25 34 34 0.0170 0.3409 0.57
2 AMOBYU BEIVAH 789 0.0102 0.82 37 22 22 0.0110 0.2206 1.04
3 AMOBYU CH 315 0.0041 0.33 51 8 8 0.0040 0.0802 0.41
4 AMOBYU 848 0.0110 0.88 46 13 13 0.0065 0.1303 1.01
VAIHTHIEH
5 AMOHTLAH 713 0.0092 0.74 37 22 22 0.0110 0.2206 0.96
6 BYMARI 512 0.0066 0.53 20 39 39 0.0195 0.3910 0.92
7 CHAKHEI - I 905 0.0117 0.94 41 18 18 0.0090 0.1805 1.12
8 CHAKHEI - II 563 0.0073 0.58 35 24 24 0.0120 0.2406 0.82
9 CHAKHEITLAH 372 0.0048 0.39 33 26 26 0.0130 0.2607 0.65
10 CHAPI - I 444 0.0057 0.46 29 30 30 0.0150 0.3008 0.76
11 CHAPI - II 645 0.0083 0.67 33 26 26 0.0130 0.2607 0.93
12 CHAPI - III 297 0.0038 0.31 28 31 31 0.0155 0.3108 0.62
13 CHHAOLO - I 704 0.0091 0.73 33 26 26 0.0130 0.2607 0.99
14 CHHAOLO - II 490 0.0063 0.51 32 27 27 0.0135 0.2707 0.78
15 CHHAOLO - III 452 0.0058 0.47 37 22 22 0.0110 0.2206 0.69
16 CHHEIHLU 675 0.0087 0.70 36 23 23 0.0115 0.2306 0.93
17 COLLEGE VAIH - I 1900 0.0246 1.97 51 8 8 0.0040 0.0802 2.05
18 COLLEGE VAIH - II 2800 0.0362 2.90 44 15 15 0.0075 0.1504 3.05
19 COUNCIL VAIH 1702 0.0220 1.76 53 6 8 0.0040 0.0802 1.84
20 ECM VAIH 1342 0.0174 1.39 53 6 8 0.0040 0.0802 1.47
21 IANA 687 0.0089 0.71 37 22 22 0.0110 0.2206 0.93
22 KAOCHAO EAST - 615 0.0080 0.64 41 18 18 0.0090 0.1805 0.82
I
23 KAOCHAO EAST - 910 0.0118 0.94 39 20 20 0.0100 0.2005 1.14
II
24 Khaikhy 151 0.0020 0.16 17 42 42 0.0211 0.4211 0.58
25 KHOPAI 860 0.0111 0.89 37 22 22 0.0110 0.2206 1.11
26 KIASIE 610 0.0079 0.63 38 21 21 0.0105 0.2105 0.84
27 LAKI -I 878 0.0114 0.91 37 22 22 0.0110 0.2206 1.13
~ 459 ~
__________________________________________________________________________________
28 LAKI -II 723 0.0094 0.75 35 24 24 0.0120 0.2406 0.99

29 LATY 326 0.0042 0.34 29 30 30 0.0150 0.3008 0.64
30 LOBO - I 690 0.0089 0.71 34 25 25 0.0125 0.2506 0.96
31 LOBO - II 567 0.0073 0.59 51 8 8 0.0040 0.0802 0.67
32 LODAWH 325 0.0042 0.34 21 38 38 0.0190 0.3810 0.72
33 Longmasu 374 0.0048 0.39 22 37 37 0.0185 0.3709 0.76
34 Lorrain Ville 275 0.0036 0.28 28 31 31 0.0155 0.3108 0.60
35 LUNGPUK 465 0.0060 0.48 34 25 25 0.0125 0.2506 0.73
36 Lungpuk II 425 0.0055 0.44 24 35 35 0.0175 0.3509 0.79
37 Lungpuk III 270 0.0035 0.28 21 38 38 0.0190 0.3810 0.66
38 MAISA 343 0.0044 0.36 25 34 34 0.0170 0.3409 0.70
39 MAWHRE 770 0.0100 0.80 33 26 26 0.0130 0.2607 1.06
40 MEISATLA -I 1350 0.0175 1.40 43 16 16 0.0080 0.1604 1.56
41 MEISATLA -II 781 0.0101 0.81 43 16 16 0.0080 0.1604 0.97
42 MEISAVAIH EAST 1403 0.0182 1.45 48 11 11 0.0055 0.1103 1.56
43 MEISAVAIH WEST 1052 0.0136 1.09 47 12 12 0.0060 0.1203 1.21
44 MIEPU I 235 0.0030 0.24 31 28 28 0.0140 0.2807 0.52
45 Miepu II 338 0.0044 0.35 22 37 37 0.0185 0.3709 0.72
46 New Colony - IV 810 0.0105 0.84 48 11 11 0.0055 0.1103 0.95
47 NEW COLONY-I 1870 0.0242 1.94 59 0 8 0.0040 0.0802 2.02
48 NEW COLONY-II 1340 0.0173 1.39 48 11 11 0.0055 0.1103 1.50
49 NEW COLONY-III 1086 0.0141 1.12 43 16 16 0.0080 0.1604 1.28
50 NEW LATAWH 690 0.0089 0.71 40 19 19 0.0095 0.1905 0.90
51 NEW SAIHA EAST 1858 0.0240 1.92 49 10 10 0.0050 0.1003 2.02
52 NEW SAIHA WEST 3982 0.0515 4.12 50 9 9 0.0045 0.0902 4.21
53 New Saikao 212 0.0027 0.22 32 27 27 0.0135 0.2707 0.49
54 New Siaha East - II 1248 0.0161 1.29 43 16 16 0.0080 0.1604 1.45
55 NO-AOTLA - I 1350 0.0175 1.40 29 30 30 0.0150 0.3008 1.70
56 NO-AOTLA - II 1385 0.0179 1.43 44 15 15 0.0075 0.1504 1.58
57 NO-AOTLA - III 315 0.0041 0.33 44 15 15 0.0075 0.1504 0.48
58 OLD TISOPI 420 0.0054 0.43 25 34 34 0.0170 0.3409 0.78
59 Pala 723 0.0094 0.75 32 27 27 0.0135 0.2707 1.02
60 Phura N 760 0.0098 0.79 39 20 20 0.0100 0.2005 0.99
61 Phura S 680 0.0088 0.70 40 19 19 0.0095 0.1905 0.89
62 RIASIKAH 212 0.0027 0.22 21 38 38 0.0190 0.3810 0.60
63 SAIHA VAIHPI - I 1910 0.0247 1.98 44 15 15 0.0075 0.1504 2.13
64 Saikao 790 0.0102 0.82 38 21 21 0.0105 0.2105 1.03
65 Saikao Beivah 564 0.0073 0.58 39 20 20 0.0100 0.2005 0.78
66 SIAHA VAIHPI - II 1342 0.0174 1.39 49 10 10 0.0050 0.1003 1.49
~ 460 ~
Annexures
__________________________________________________________________________________
67 SIAHA VAIHPI -III 1615 0.0209 1.67 41 18 18 0.0090 0.1805 1.85

68 SIAHATLA - I 1865 0.0241 1.93 48 11 11 0.0055 0.1103 2.04
69 SIAHATLA - II 1960 0.0254 2.03 38 21 21 0.0105 0.2105 2.24
70 SIAHATLA - III 1211 0.0157 1.25 47 12 12 0.0060 0.1203 1.37
71 SIASI 500 0.0065 0.52 33 26 26 0.0130 0.2607 0.78
72 SIATA -I 730 0.0094 0.76 35 24 24 0.0120 0.2406 1.00
73 SIATA-II 540 0.0070 0.56 43 16 16 0.0080 0.1604 0.72
74 SIATLAI 455 0.0059 0.47 37 22 22 0.0110 0.2206 0.69
75 THEIRI 790 0.0102 0.82 43 16 16 0.0080 0.1604 0.98
76 THEIVA 797 0.0103 0.82 35 24 24 0.0120 0.2406 1.07
77 THIAHRA 537 0.0069 0.56 29 30 30 0.0150 0.3008 0.86
78 THOSAI 572 0.0074 0.59 37 22 22 0.0110 0.2206 0.81
79 Tipa Beivah 735 0.0095 0.76 38 21 21 0.0105 0.2105 0.97
80 Tipa D-I 630 0.0082 0.65 43 16 16 0.0080 0.1604 0.81
81 Tipa D-II 710 0.0092 0.73 44 15 15 0.0075 0.1504 0.89
82 Tipa V-I 1025 0.0133 1.06 50 9 9 0.0045 0.0902 1.15
83 Tipa V-II 545 0.0071 0.56 46 13 13 0.0065 0.1303 0.69
84 Tipa V-III 650 0.0084 0.67 46 13 13 0.0065 0.1303 0.80
85 TIPI FERRY 320 0.0041 0.33 28 31 31 0.0155 0.3108 0.64
86 Tisi - I 668 0.0086 0.69 37 22 22 0.0110 0.2206 0.91
87 Tisi - II 645 0.0083 0.67 35 24 24 0.0120 0.2406 0.91
88 TISOPI 686 0.0089 0.71 37 22 22 0.0110 0.2206 0.93
89 Tokalo 580 0.0075 0.60 28 31 31 0.0155 0.3108 0.91
90 Vahia 890 0.0115 0.92 41 18 18 0.0090 0.1805 1.10
91 ZAWNGLING B 759 0.0098 0.79 42 17 17 0.0085 0.1704 0.96
92 Zawngling Lotai 479 0.0062 0.50 37 22 22 0.0110 0.2206 0.72
93 Zyhno 735 0.0095 0.76 39 20 20 0.0100 0.2005 0.96
Total 77287 1.0000 80.00 1995 1.0000 20.0000 100.00
~ 461 ~
__________________________________________________________________________________
Annexure 9.13
(Para 9.41)

Lawngtlai district
Inter se share in %
80% weightage to
20% weightage to
as per horizontal
Antyodya 2020)
Village Council
Score (Mission
Distribution of
Distribution of
Distance from
highest score
Development
development
development
Population
population
population
distance
distance
distance
Sl. No.
1 2 3 4 5 6 7 8 9 10 11
1 Adubangasora 404 0.0024 0.20 17 41 41 0.01 0.14 0.34
2 Ajasora-I 722 0.0044 0.35 36 22 22 0.00 0.08 0.42
3 Ajasora-II 704 0.0043 0.34 19 39 39 0.01 0.13 0.47
4 Ajasora-III 403 0.0024 0.19 13 45 45 0.01 0.15 0.35
5 AOC Veng 1850 0.0112 0.89 44 14 14 0.00 0.05 0.94
6 Archhuang 682 0.0041 0.33 26 32 32 0.01 0.11 0.44
7 Arotinagar 430 0.0026 0.21 25 33 33 0.01 0.11 0.32
8 Baganpara 860 0.0052 0.42 37 21 21 0.00 0.07 0.49
9 Bajeisora 923 0.0056 0.45 43 15 15 0.00 0.05 0.50
10 Bandukbanga 710 0.0043 0.34 5 53 53 0.01 0.18 0.52
11 Baraguisury 370 0.0022 0.18 19 39 39 0.01 0.13 0.31
12 Barapansury East 997 0.0060 0.48 18 40 40 0.01 0.14 0.62
13 Barapansury I 1933 0.0117 0.94 39 19 19 0.00 0.06 1.00
14 Barapansury-II 1786 0.0108 0.86 43 15 15 0.00 0.05 0.92
15 Barkalak 748 0.0045 0.36 35 23 23 0.00 0.08 0.44
16 Barkobakhali 550 0.0033 0.27 12 46 46 0.01 0.16 0.42
17 Barkobakhali II 318 0.0019 0.15 6 52 52 0.01 0.18 0.33
18 Betbonya 389 0.0024 0.19 25 33 33 0.01 0.11 0.30
19 Billosora 550 0.0033 0.27 21 37 37 0.01 0.13 0.39
20 BOLISORA 1163 0.0070 0.56 19 39 39 0.01 0.13 0.70
21 Boranasury 426 0.0026 0.21 19 39 39 0.01 0.13 0.34
22 Boroituli 333 0.0020 0.16 9 49 49 0.01 0.17 0.33
23 Bualpui Ng I 2089 0.0126 1.01 58 0 8 0.00 0.03 1.04
24 Bualpui Ng II 771 0.0047 0.37 47 11 11 0.00 0.04 0.41
25 Bungtlang S I 1703 0.0103 0.82 41 17 17 0.00 0.06 0.88
26 Bungtlang S II 1257 0.0076 0.61 41 17 17 0.00 0.06 0.67
27 CHAMDUR P I 862 0.0052 0.42 23 35 35 0.01 0.12 0.54
28 CHAMDUR P II 480 0.0029 0.23 22 36 36 0.01 0.12 0.36
29 CHAMDURTLANG I 607 0.0037 0.29 12 46 46 0.01 0.16 0.45
~ 462 ~
Annexures
__________________________________________________________________________________
30 CHAMDURTLANG II 144 0.0009 0.07 12 46 46 0.01 0.16 0.23

31 Chaminisora 315 0.0019 0.15 23 35 35 0.01 0.12 0.27
32 Charluitlang 237 0.0014 0.11 11 47 47 0.01 0.16 0.28
33 Chawngtelui 586 0.0035 0.28 25 33 33 0.01 0.11 0.40
34 Chawngte-P 2328 0.0141 1.13 45 13 13 0.00 0.04 1.17
35 Chawnhu 690 0.0042 0.33 47 11 11 0.00 0.04 0.37
36 Chawntlangpui 508 0.0031 0.25 50 8 8 0.00 0.03 0.27
37 Cheural 1384 0.0084 0.67 42 16 16 0.00 0.05 0.72
38 CHIKHURLUI 517 0.0031 0.25 15 43 43 0.01 0.15 0.40
39 Chongrasury 205 0.0012 0.10 13 45 45 0.01 0.15 0.25
40 Chotapansury 850 0.0051 0.41 19 39 39 0.01 0.13 0.54
41 Chotoguisury-I 468 0.0028 0.23 21 37 37 0.01 0.13 0.35
42 Chotoguisury-II 287 0.0017 0.14 7 51 51 0.01 0.17 0.31
43 Chotokobakhali 295 0.0018 0.14 14 44 44 0.01 0.15 0.29
44 College Veng 3451 0.0209 1.67 48 10 10 0.00 0.03 1.70
45 Council Veng 2886 0.0175 1.40 46 12 12 0.00 0.04 1.44
46 Damlui 749 0.0045 0.36 14 44 44 0.01 0.15 0.51
47 Darnamtlang 395 0.0024 0.19 27 31 31 0.01 0.11 0.30
48 Devasora N 995 0.0060 0.48 18 40 40 0.01 0.14 0.62
49 Devasora S 689 0.0042 0.33 19 39 39 0.01 0.13 0.47
50 Diltlang S 1375 0.0083 0.67 35 23 23 0.00 0.08 0.74
51 DUMZAUTLANG 475 0.0029 0.23 9 49 49 0.01 0.17 0.40
52 Dursora 340 0.0021 0.16 7 51 51 0.01 0.17 0.34
53 Electric Veng 3561 0.0215 1.72 46 12 12 0.00 0.04 1.76
54 FANGFARLUI 381 0.0023 0.18 27 31 31 0.01 0.11 0.29
55 Fulsora 282 0.0017 0.14 23 35 35 0.01 0.12 0.26
56 Fultuli 721 0.0044 0.35 33 25 25 0.00 0.09 0.43
57 Futsury 739 0.0045 0.36 10 48 48 0.01 0.16 0.52
58 Gabasury 214 0.0013 0.10 8 50 50 0.01 0.17 0.27
59 Gerakuluksora 445 0.0027 0.22 8 50 50 0.01 0.17 0.39
60 Gerasury 326 0.0020 0.16 10 48 48 0.01 0.16 0.32
61 Golasury 904 0.0055 0.44 27 31 31 0.01 0.11 0.54
62 Gulsingbapsora 445 0.0027 0.22 9 49 49 0.01 0.17 0.38
63 Hmawngbu 1350 0.0082 0.65 24 34 34 0.01 0.12 0.77
64 Hmawngbuchhuah 580 0.0035 0.28 18 40 40 0.01 0.14 0.42
65 Hmunlai 428 0.0026 0.21 31 27 27 0.00 0.09 0.30
66 HMUNNUAM 812 0.0049 0.39 32 26 26 0.00 0.09 0.48
67 Hruitezawl 1000 0.0060 0.48 23 35 35 0.01 0.12 0.60
68 Jamersury 300 0.0018 0.15 25 33 33 0.01 0.11 0.26
~ 463 ~
__________________________________________________________________________________
69 Jaruldubosora 684 0.0041 0.33 13 45 45 0.01 0.15 0.48

70 Jarulsury-I 426 0.0026 0.21 18 40 40 0.01 0.14 0.34
71 Jarulsury-II 597 0.0036 0.29 12 46 46 0.01 0.16 0.45
72 Jognasuri 1348 0.0082 0.65 12 46 46 0.01 0.16 0.81
73 Kakichhuah 583 0.0035 0.28 14 44 44 0.01 0.15 0.43
74 Kamalanagar V 834 0.0050 0.40 15 43 43 0.01 0.15 0.55
75 Kamalanagar VI 450 0.0027 0.22 18 40 40 0.01 0.14 0.35
76 Kamalanagar-I 3000 0.0181 1.45 34 24 24 0.00 0.08 1.53
77 Kamalanagar-II 2851 0.0172 1.38 49 9 9 0.00 0.03 1.41
78 Kamalanagar-III 2521 0.0152 1.22 52 6 8 0.00 0.03 1.25
79 Kamalanagar-IV 1457 0.0088 0.70 41 17 17 0.00 0.06 0.76
80 Kamtuli 706 0.0043 0.34 20 38 38 0.01 0.13 0.47
81 Karlui - I 938 0.0057 0.45 26 32 32 0.01 0.11 0.56
82 Karlui II 753 0.0046 0.36 13 45 45 0.01 0.15 0.52
83 Kawlchaw W 705 0.0043 0.34 46 12 12 0.00 0.04 0.38
84 Kawnkhua 265 0.0016 0.13 10 48 48 0.01 0.16 0.29
85 Kawrthindeng 1520 0.0092 0.74 31 27 27 0.00 0.09 0.83
86 Kukurduleya 832 0.0050 0.40 15 43 43 0.01 0.15 0.55
87 Kurbalovasora 784 0.0047 0.38 24 34 34 0.01 0.12 0.50
88 LAITLANG 350 0.0021 0.17 13 45 45 0.01 0.15 0.32
89 Lakkisury 500 0.0030 0.24 8 50 50 0.01 0.17 0.41
90 Lawngtlai I (Vengpui 3210 0.0194 1.55 41 17 17 0.00 0.06 1.61
- I)
91 Lawngtlai I (Vengpui 1291 0.0078 0.62 48 10 10 0.00 0.03 0.66
- II)
92 Lawngtlai II (Bazar 3996 0.0242 1.93 52 6 8 0.00 0.03 1.96
Veng)
93 Lawngtlai IV 5768 0.0349 2.79 41 17 17 0.00 0.06 2.85
(Chandmary - II)
94 Lawngtlai IV 2500 0.0151 1.21 48 10 10 0.00 0.03 1.24
(Chanmary - I)
95 Lawngtlai-III 3726 0.0225 1.80 52 6 8 0.00 0.03 1.83
96 Longpuighat 811 0.0049 0.39 36 22 22 0.00 0.08 0.47
97 Longpuighat-II 511 0.0031 0.25 22 36 36 0.01 0.12 0.37
98 Ludisora 386 0.0023 0.19 7 51 51 0.01 0.17 0.36
99 Lunghauka 832 0.0050 0.40 20 38 38 0.01 0.13 0.53
100 Lungpher 1621 0.0098 0.78 44 14 14 0.00 0.05 0.83
101 Lungtian II 497 0.0030 0.24 37 21 21 0.00 0.07 0.31
102 Lungtian-I 1176 0.0071 0.57 42 16 16 0.00 0.05 0.62
103 Lungzarhtum 1153 0.0070 0.56 50 8 8 0.00 0.03 0.59
104 M.KAWNPUI 1229 0.0074 0.59 34 24 24 0.00 0.08 0.68
105 Mainabapsora-I 592 0.0036 0.29 13 45 45 0.01 0.15 0.44
106 Mainabapsora-II 586 0.0035 0.28 25 33 33 0.01 0.11 0.40
~ 464 ~
Annexures
__________________________________________________________________________________
107 Mampui 1088 0.0066 0.53 44 14 14 0.00 0.05 0.57

108 Mandirasora 761 0.0046 0.37 19 39 39 0.01 0.13 0.50
109 Massury 391 0.0024 0.19 22 36 36 0.01 0.12 0.31
110 Mautlang (Lawngtlai) 498 0.0030 0.24 15 43 43 0.01 0.15 0.39
111 Montola 789 0.0048 0.38 23 35 35 0.01 0.12 0.50
112 Mualbu L 586 0.0035 0.28 26 32 32 0.01 0.11 0.39
113 Nagdarasora 400 0.0024 0.19 11 47 47 0.01 0.16 0.35
114 Nalbonya 650 0.0039 0.31 26 32 32 0.01 0.11 0.42
115 New Jaganasury I 764 0.0046 0.37 26 32 32 0.01 0.11 0.48
116 New Jaganasury II 475 0.0029 0.23 27 31 31 0.01 0.11 0.34
117 New Jaganasury III 356 0.0022 0.17 10 48 48 0.01 0.16 0.34
118 Ngengpuikai 2048 0.0124 0.99 39 19 19 0.00 0.06 1.06
119 Ngengpuitlang 725 0.0044 0.35 28 30 30 0.01 0.10 0.45
120 NGHALIMLUI 1459 0.0088 0.71 38 20 20 0.00 0.07 0.77
121 NGUNLINGKHUA 520 0.0031 0.25 12 46 46 0.01 0.16 0.41
122 Old Bajeisora 347 0.0021 0.17 9 49 49 0.01 0.17 0.34
123 Paithar 564 0.0034 0.27 39 19 19 0.00 0.06 0.34
124 PANDAWNGLUI 599 0.0036 0.29 17 41 41 0.01 0.14 0.43
125 Pangkhua 1636 0.0099 0.79 42 16 16 0.00 0.05 0.85
126 Parva IV 760 0.0046 0.37 22 36 36 0.01 0.12 0.49
127 Parva-I 1224 0.0074 0.59 14 44 44 0.01 0.15 0.74
128 Parva-II 508 0.0031 0.25 19 39 39 0.01 0.13 0.38
129 Parva-III 305 0.0018 0.15 19 39 39 0.01 0.13 0.28
130 Pelenosora 569 0.0034 0.28 13 45 45 0.01 0.15 0.43
131 R.Vanhne 471 0.0028 0.23 34 24 24 0.00 0.08 0.31
132 Rajmondal 445 0.0027 0.22 24 34 34 0.01 0.12 0.33
133 Rawlbuk 717 0.0043 0.35 34 24 24 0.00 0.08 0.43
134 Rengkashya 1005 0.0061 0.49 11 47 47 0.01 0.16 0.65
135 Rulkual 805 0.0049 0.39 44 14 14 0.00 0.05 0.44
136 Sabualtlang 576 0.0035 0.28 21 37 37 0.01 0.13 0.41
137 SAIBAWH 1184 0.0072 0.57 17 41 41 0.01 0.14 0.71
138 Saikah L 179 0.0011 0.09 34 24 24 0.00 0.08 0.17
139 Saikah u 403 0.0024 0.19 38 20 20 0.00 0.07 0.26
140 Saikhawthlir 228 0.0014 0.11 15 43 43 0.01 0.15 0.26
(Lawngtlai)
141 Saizawh E 766 0.0046 0.37 32 26 26 0.00 0.09 0.46
142 Saizawh W 506 0.0031 0.24 32 26 26 0.00 0.09 0.33
143 Sakeilui-I 302 0.0018 0.15 20 38 38 0.01 0.13 0.28
144 Sakeilui-II 564 0.0034 0.27 28 30 30 0.01 0.10 0.38
145 Samuksora 302 0.0018 0.15 15 43 43 0.01 0.15 0.29
~ 465 ~
__________________________________________________________________________________
146 Sangau III 613 0.0037 0.30 36 22 22 0.00 0.08 0.37

147 Sangau IV 1034 0.0063 0.50 48 10 10 0.00 0.03 0.53
148 Sangau-I 1592 0.0096 0.77 40 18 18 0.00 0.06 0.83
149 Sangau-II 1428 0.0086 0.69 39 19 19 0.00 0.06 0.76
150 Sentetfiang 367 0.0022 0.18 35 23 23 0.00 0.08 0.26
151 Siachangkawn 1026 0.0062 0.50 47 11 11 0.00 0.04 0.53
152 Sihtlangpui 539 0.0033 0.26 40 18 18 0.00 0.06 0.32
153 Silbanga 300 0.0018 0.15 16 42 42 0.01 0.14 0.29
154 Sillosora 295 0.0018 0.14 10 48 48 0.01 0.16 0.31
155 Silsury 630 0.0038 0.30 25 33 33 0.01 0.11 0.42
156 Simeisury 393 0.0024 0.19 15 43 43 0.01 0.15 0.34
157 Siminasora 392 0.0024 0.19 13 45 45 0.01 0.15 0.34
158 Sumsilui 1672 0.0101 0.81 36 22 22 0.00 0.08 0.88
159 T Dumzau 450 0.0027 0.22 7 51 51 0.01 0.17 0.39
160 Thaltlang 733 0.0044 0.35 33 25 25 0.00 0.09 0.44
161 Thingkah 2163 0.0131 1.05 46 12 12 0.00 0.04 1.09
162 Tialdawngilung 449 0.0027 0.22 37 21 21 0.00 0.07 0.29
163 TUICHAWNGTLANG 987 0.0060 0.48 17 41 41 0.01 0.14 0.62
164 Tuidangtlang 475 0.0029 0.23 32 26 26 0.00 0.09 0.32
165 Tuikhurlui 582 0.0035 0.28 32 26 26 0.00 0.09 0.37
166 TUISENTLANG 392 0.0024 0.19 9 49 49 0.01 0.17 0.36
167 Tuithumhnar 980 0.0059 0.47 26 32 32 0.01 0.11 0.58
168 Tungosora 287 0.0017 0.14 14 44 44 0.01 0.15 0.29
169 Udalthana-I 1177 0.0071 0.57 30 28 28 0.00 0.10 0.67
170 Udalthana-II 981 0.0059 0.47 22 36 36 0.01 0.12 0.60
171 Ugalsury 802 0.0048 0.39 24 34 34 0.01 0.12 0.50
172 Ugudasury N 396 0.0024 0.19 11 47 47 0.01 0.16 0.35
173 Ugudasury South 978 0.0059 0.47 24 34 34 0.01 0.12 0.59
174 Ulusury 527 0.0032 0.25 12 46 46 0.01 0.16 0.41
175 Vaiseitlang-I 481 0.0029 0.23 21 37 37 0.01 0.13 0.36
176 Vaiseitlang-II 475 0.0029 0.23 22 36 36 0.01 0.12 0.35
177 Vartek 305 0.0018 0.15 25 33 33 0.01 0.11 0.26
178 Vartekkai 388 0.0023 0.19 23 35 35 0.01 0.12 0.31
179 VATHUAMPUI 1482 0.0090 0.72 25 33 33 0.01 0.11 0.83
180 Vawmbuk 1162 0.0070 0.56 36 22 22 0.00 0.08 0.64
181 Vawmbuk II 610 0.0037 0.30 36 22 22 0.00 0.08 0.37
182 Veseikai 1258 0.0076 0.61 40 18 18 0.00 0.06 0.67
183 Zochachhuah 425 0.0026 0.21 23 35 35 0.01 0.12 0.33
Total 165367 1.0000 80.00 5851 1.00 20.00 100.00
~ 466 ~
Annexures
__________________________________________________________________________________
Annexure 9.14
(Para 9.43)
Year-wise share of Village Councils under Aizawl district on tax devolutions
(₹ in lakh)
Inter se
Sl.
Village Council share in 2021-22 2022-23 2023-24 2024-25 2025-26 Total
No.
%
1 2 3 4 5 6 7 8 9
1 Aibawk 1.42 1.88 2.49 2.44 2.45 3.76 13.01
2 Chamring 0.63 0.83 1.10 1.08 1.08 1.66 5.76
3 Chawilung 0.97 1.28 1.69 1.66 1.67 2.56 8.86
4 Chhanchhuahna 0.65 0.86 1.14 1.12 1.12 1.72 5.97
Khawpui
5 Darlawn Chhim veng 0.79 1.04 1.37 1.35 1.35 2.08 7.20
6 Darlawn Venghlun 2.43 3.21 4.24 4.17 4.17 6.41 22.20
7 Darlawn Vengpui 2.38 3.15 4.16 4.09 4.09 6.28 21.77
8 Darlawng 0.81 1.07 1.41 1.39 1.39 2.14 7.40
9 East Damdiai 0.75 0.99 1.31 1.29 1.29 1.98 6.85
10 East Phaileng 1.59 2.11 2.78 2.74 2.74 4.21 14.57
11 Falkawn 1.65 2.18 2.87 2.83 2.83 4.34 15.05
12 Hmuifang 0.59 0.78 1.02 1.01 1.01 1.55 5.36
13 Hmunnghak 0.59 0.78 1.03 1.01 1.01 1.55 5.37
14 Hualngohmun 0.54 0.72 0.95 0.93 0.93 1.43 4.96
15 Kelsih 0.82 1.08 1.43 1.41 1.41 2.16 7.50
16 Kepran 1.14 1.51 1.99 1.96 1.96 3.01 10.41
17 Khawpuar 0.81 1.07 1.42 1.39 1.40 2.14 7.43
18 Khawruhlian 2.27 2.99 3.95 3.89 3.89 5.98 20.70
19 Lamchhip 0.98 1.30 1.72 1.69 1.69 2.59 8.99
20 Lengpui 3.04 4.02 5.31 5.22 5.23 8.03 27.81
21 Lungleng I 0.92 1.22 1.61 1.58 1.58 2.43 8.43
22 Lungsei 0.74 0.98 1.30 1.28 1.28 1.96 6.79
23 Lungsum 1.04 1.37 1.81 1.78 1.78 2.74 9.48
24 Maubuang 0.74 0.97 1.28 1.26 1.26 1.94 6.72
25 Mauchar 1.58 2.09 2.76 2.71 2.71 4.17 14.44
26 Melriat 1.05 1.39 1.83 1.80 1.80 2.77 9.59
27 Muallungthu 1.35 1.78 2.36 2.32 2.32 3.56 12.33
28 Muthi 0.96 1.27 1.68 1.65 1.65 2.54 8.80
29 N. Lungleng 0.97 1.28 1.69 1.66 1.66 2.55 8.83
30 N.Khawdungsei 0.84 1.11 1.46 1.44 1.44 2.21 7.65
31 N.Serzawl 0.95 1.25 1.65 1.62 1.63 2.50 8.65
~ 467 ~
__________________________________________________________________________________
32 N.Tinghmun 1.28 1.69 2.23 2.19 2.19 3.37 11.66

33 New Vervek 0.97 1.29 1.70 1.67 1.67 2.57 8.91
34 Palsang 0.80 1.05 1.39 1.37 1.37 2.10 7.29
35 Pehlawn 1.03 1.36 1.79 1.76 1.76 2.71 9.37
36 Phulmawi 0.64 0.85 1.12 1.10 1.11 1.70 5.88
37 Phulpui 1.28 1.69 2.23 2.20 2.20 3.38 11.70
38 Ratu 2.42 3.19 4.22 4.15 4.15 6.37 22.08
39 Sailam 0.94 1.25 1.65 1.62 1.62 2.49 8.62
40 Sailutar 0.88 1.17 1.54 1.51 1.52 2.33 8.07
41 Sairang 3.20 4.23 5.59 5.49 5.50 8.45 29.26
42 Sairang Dinthar 1.73 2.28 3.02 2.97 2.97 4.56 15.80
43 Sairang Sihhmui 1.03 1.37 1.80 1.77 1.78 2.73 9.45
44 Sakawrdai 4.09 5.41 7.15 7.03 7.03 10.80 37.42
45 Samlukhai 1.36 1.80 2.38 2.34 2.34 3.59 12.44
46 Samtlang 1.51 1.99 2.64 2.59 2.59 3.98 13.80
47 Sateek 0.99 1.31 1.73 1.70 1.71 2.62 9.07
48 Sawleng 1.85 2.45 3.23 3.18 3.18 4.89 16.92
49 Seling 2.35 3.10 4.10 4.03 4.03 6.19 21.45
50 Sesawng I 1.72 2.27 3.00 2.95 2.95 4.53 15.71
51 Sesawng II 2.02 2.67 3.53 3.47 3.47 5.33 18.47
52 Sesawng III 1.01 1.33 1.76 1.73 1.73 2.66 9.20
53 Sialsuk 1.82 2.41 3.18 3.13 3.13 4.81 16.67
54 Sihphir 6.23 8.23 10.88 10.69 10.70 16.44 56.94
55 Sihphir Venghlun 3.79 5.01 6.62 6.51 6.51 10.00 34.65
56 Sumsuih 0.89 1.18 1.56 1.53 1.54 2.36 8.17
57 Sunhluchhip 1.08 1.43 1.88 1.85 1.85 2.85 9.87
58 Tachhip 1.19 1.57 2.08 2.04 2.04 3.14 10.87
59 Thiak 0.90 1.20 1.58 1.55 1.55 2.39 8.27
60 Thingsat 0.72 0.96 1.27 1.24 1.25 1.91 6.63
61 Thingsul Tlangnuam 1.46 1.93 2.54 2.50 2.50 3.85 13.32
62 Thingsulthliah - I 2.76 3.65 4.82 4.74 4.75 7.29 25.25
63 Thingsulthliah - II 1.61 2.13 2.81 2.76 2.76 4.25 14.71
64 Tlungvel 2.49 3.29 4.35 4.28 4.28 6.58 22.78
65 Tuirial 1.10 1.46 1.92 1.89 1.89 2.91 10.07
66 Tuirial Airfield 0.96 1.27 1.68 1.65 1.65 2.54 8.79
67 Vaitin 1.57 2.07 2.74 2.69 2.69 4.14 14.33
68 Zohmun 1.44 1.90 2.51 2.47 2.47 3.80 13.16
69 Zokhawthiang 0.88 1.17 1.54 1.51 1.52 2.33 8.06
Total 100.00 132.16 174.57 171.65 171.79 263.84 914.00
~ 468 ~
Annexures
__________________________________________________________________________________
Annexure 9.15A
(Para 9.43)
Year-wise share of Village Councils under Lunglei district on tax devolution

for the years 2021-22 and 2022-23
(₹ in lakh)
Sl.
Village Council Inter se share 2021-22 2022-23 Total
No.
1 2 3 4 5 6
1 Belpei 0.92 2.12 2.80 4.92
2 Belthei 0.63 1.45 1.92 3.37
3 Bolia 0.63 1.45 1.92 3.37
4 Bualte 0.34 0.78 1.03 1.81
5 Buarpui 0.84 1.94 2.56 4.50
6 Buknuam 0.54 1.24 1.63 2.87
7 Bunghmun West 0.85 1.96 2.59 4.55
8 Bungtlang West 0.34 0.78 1.03 1.80
9 Changpui 0.42 0.97 1.28 2.25
10 Chawilung S 0.58 1.34 1.77 3.10
11 Chawngte L 0.85 1.96 2.58 4.54
12 Chengkawllui 0.79 1.83 2.41 4.24
13 Chengpui 0.28 0.64 0.84 1.48
14 Chithar 0.27 0.62 0.82 1.45
15 College Veng 0.86 1.98 2.61 4.58
16 Dawn 0.44 1.01 1.34 2.35
17 Dengsur 0.55 1.26 1.66 2.92
18 Diblibagh 1.30 2.99 3.95 6.94
19 Electric Veng 2.80 6.45 8.52 14.97
20 Farm Veng 1.32 3.04 4.01 7.05
21 Haulawng 1.48 3.41 4.51 7.92
22 Hauruang 0.92 2.12 2.80 4.92
23 Hlumte 0.40 0.92 1.21 2.12
24 Hmundo 0.39 0.89 1.18 2.07
25 Hmuntlang 0.28 0.65 0.86 1.52
26 Hrangchalkawn 0.69 1.58 2.09 3.67
27 Kalapani 0.86 1.99 2.63 4.61
28 Kauchhuah 0.68 1.57 2.07 3.64
29 Kawlhawk 0.28 0.64 0.85 1.49
30 Khawlek S 0.28 0.65 0.85 1.50
31 Khawmawi 0.99 2.28 3.01 5.29
32 Khojoysury 0.56 1.30 1.71 3.01
~ 469 ~
__________________________________________________________________________________
33 Laisawral 0.46 1.06 1.41 2.47

34 Lalnutui 0.49 1.13 1.49 2.62
35 Luangmual 1.39 3.19 4.22 7.41
36 Lungchem 0.42 0.97 1.28 2.25
37 Lungdai South 0.34 0.78 1.04 1.82
38 Lunglawn 2.09 4.80 6.34 11.14
39 Lunglei Bazar Veng 2.95 6.80 8.98 15.78
40 Lunglei Chanmari 3.80 8.75 11.56 20.30
41 Lungpuizawl 0.59 1.35 1.79 3.14
42 Lungrang S 1.18 2.70 3.57 6.28
43 Lungsen I 0.88 2.03 2.69 4.72
44 Lungsen II 1.17 2.69 3.55 6.24
45 Malsury 0.82 1.90 2.51 4.40
46 Mamte 0.57 1.31 1.74 3.05
47 Marpara S 2.18 5.01 6.62 11.64
48 Mausen 0.33 0.76 1.00 1.76
49 Mautlang (Lungsen) 0.54 1.23 1.63 2.86
50 Mauzam 0.64 1.46 1.93 3.40
51 Mualcheng S 0.65 1.49 1.97 3.47
52 Mualthuam N 0.96 2.22 2.93 5.15
53 Mualthuam S 0.58 1.35 1.78 3.12
54 New Sachan 0.83 1.91 2.53 4.44
55 Nunsury I 0.79 1.82 2.40 4.23
56 Nunsury II 0.67 1.54 2.04 3.58
57 Phairuangkai 1.07 2.47 3.26 5.73
58 Puankhai 0.88 2.03 2.68 4.71
59 Pukpui 1.22 2.80 3.69 6.49
60 Putlungasih 1.04 2.40 3.17 5.57
61 Rahsi Veng 2.70 6.21 8.20 14.40
62 Ralvawng 0.55 1.27 1.67 2.94
63 Ramlaitui 0.46 1.07 1.41 2.48
64 Ramthar Veng 3.22 7.42 9.79 17.21
65 Rangte 0.78 1.80 2.37 4.17
66 Rotlang W 0.61 1.41 1.87 3.28
67 Rualalung 0.59 1.36 1.80 3.16
68 Runtung 0.38 0.87 1.15 2.02
69 Sachan 0.58 1.33 1.76 3.09
70 Sailen 0.40 0.92 1.22 2.14
71 Sairep 0.41 0.94 1.24 2.18
~ 470 ~
Annexures
__________________________________________________________________________________
72 Salem 1.03 2.37 3.14 5.51

73 Sazaikawn 0.54 1.23 1.63 2.86
74 Sekhum 0.34 0.79 1.05 1.84
75 Serkawn 1.49 3.43 4.54 7.97
76 Serte 0.40 0.92 1.21 2.13
77 Sertlangpui 0.42 0.97 1.28 2.25
78 Sesawm 0.46 1.07 1.41 2.48
79 Sethlun 0.69 1.59 2.09 3.68
80 Silkur 0.49 1.14 1.50 2.64
81 Sumasumi 0.54 1.25 1.65 2.90
82 Tablabagh 1.02 2.35 3.11 5.46
83 Tawipui N - I 0.55 1.27 1.68 2.94
84 Tawipui N – II 0.65 1.50 1.99 3.49
85 Tawipui S 0.95 2.18 2.87 5.05
86 Thaizawl 0.30 0.69 0.92 1.61
87 Thangpui 0.38 0.86 1.14 2.01
88 Thangte / Thangpui 0.33 0.77 1.02 1.79
89 Thehlep 0.26 0.59 0.78 1.37
90 Theiriat 1.27 2.93 3.87 6.80
91 Thenhlum 0.86 1.98 2.62 4.60
92 Thingfal 1.00 2.30 3.04 5.33
93 Thlengang 0.36 0.83 1.09 1.92
94 Thuampui 0.40 0.93 1.23 2.16
95 Tiperegahat 1.01 2.34 3.09 5.42
96 Tlabung 2.71 6.24 8.25 14.49
97 Tualthu 0.57 1.32 1.74 3.06
98 Tuichawng 2.26 5.21 6.88 12.08
99 Tuikawi 0.78 1.79 2.36 4.15
100 Tuisenchhuah 0.44 1.01 1.33 2.35
101 Upper Lungrang S 0.49 1.13 1.49 2.61
102 Vaisam 0.38 0.88 1.16 2.04
103 Vanhne 0.60 1.38 1.83 3.21
104 Venghlun 1.19 2.73 3.61 6.34
105 Venglai 2.29 5.28 6.97 12.25
106 Zawlpui (Lungsen) 1.21 2.78 3.67 6.45
107 Zehtet 0.75 1.73 2.29 4.02
108 Zobawk N 1.09 2.50 3.30 5.80
109 Zobawk S 1.29 2.97 3.92 6.89
110 Zodin 1.58 3.64 4.81 8.44
111 Zohnuai 1.03 2.36 3.12 5.48
112 Zotlang 1.53 3.51 4.64 8.15
113 Zotuitlang 0.45 1.03 1.36 2.38
100.00 230.13 303.98 534.11
~ 471 ~
__________________________________________________________________________________
Annexure 9.15B
(Para 9.43)
Year-wise share of Village Councils under Lunglei district on tax devolution

for the year 2023-24 up to 2025-26
(₹ in lakh)
Sl.
Village Council Inter se share 2023-24 2024-25 2025-26 Total
No.
1 2 3 4 5 6 7
1 Belpei 1.51 3.19 3.19 4.90 11.27
2 Belthei 0.99 2.09 2.09 3.21 7.38
3 Bolia 0.99 2.09 2.09 3.21 7.38
4 Bualte 0.53 1.11 1.11 1.71 3.93
5 Buarpui 1.50 3.16 3.16 4.85 11.17
6 Buknuam 0.80 1.68 1.68 2.59 5.96
7 Bunghmun West 1.42 2.99 2.99 4.59 10.57
8 Bungtlang West 0.48 1.01 1.01 1.55 3.57
9 Changpui 0.64 1.35 1.35 2.07 4.78
10 Chawilung S 0.88 1.85 1.85 2.84 6.53
11 Chawngte L 1.44 3.02 3.03 4.65 10.70
12 Chengkawllui 1.28 2.69 2.69 4.13 9.51
13 Chengpui 0.37 0.77 0.77 1.19 2.74
14 Chithar 0.38 0.80 0.80 1.23 2.84
15 Dawn 0.67 1.41 1.42 2.17 5.00
16 Dengsur 0.86 1.82 1.82 2.79 6.42
17 Diblibagh 2.21 4.65 4.65 7.14 16.43
18 Haulawng 2.74 5.77 5.78 8.87 20.42
19 Hlumte 0.55 1.15 1.15 1.77 4.07
20 Hmundo 0.51 1.07 1.07 1.65 3.79
21 Hmuntlang 0.37 0.78 0.78 1.20 2.76
22 Kalapani 1.37 2.88 2.88 4.43 10.19
23 Kauchhuah 1.05 2.21 2.21 3.40 7.82
24 Kawlhawk 0.36 0.76 0.76 1.17 2.70
25 Khawlek S 0.37 0.78 0.78 1.20 2.76
26 Khawmawi 1.66 3.50 3.51 5.38 12.39
27 Khojoysury 0.86 1.82 1.82 2.80 6.44
28 Laisawral 0.71 1.49 1.49 2.30 5.28
29 Lalnutui 0.70 1.48 1.49 2.28 5.25
~ 472 ~
Annexures
__________________________________________________________________________________
30 Lungchem 0.63 1.34 1.34 2.05 4.73

31 Lungdai South 0.47 1.00 1.00 1.53 3.53
32 Lungrang S 2.01 4.23 4.23 6.50 14.97
33 Lungsen I 1.47 3.10 3.11 4.77 10.98
34 Lungsen II 1.98 4.16 4.16 6.40 14.72
35 Malsury 1.32 2.78 2.79 4.28 9.85
36 Mamte 0.89 1.88 1.88 2.89 6.65
37 Marpara S 3.83 8.07 8.08 12.41 28.56
38 Mausen 0.49 1.03 1.03 1.58 3.65
39 Mautlang (Lungsen) 0.77 1.62 1.62 2.49 5.72
40 Mauzam 0.98 2.07 2.07 3.18 7.32
41 Mualcheng S 1.06 2.23 2.23 3.43 7.90
42 Mualthuam N 1.66 3.49 3.49 5.36 12.35
43 Mualthuam S 0.90 1.89 1.89 2.90 6.68
44 New Sachan 1.34 2.83 2.83 4.34 10.00
45 Nunsury I 1.28 2.69 2.69 4.14 9.52
46 Nunsury II 1.04 2.20 2.20 3.38 7.78
47 Phairuangkai 1.84 3.87 3.87 5.94 13.68
48 Puankhai 1.44 3.03 3.04 4.66 10.73
49 Putlungasih 1.76 3.72 3.72 5.71 13.15
50 Ralvawng 0.82 1.73 1.73 2.66 6.13
51 Ramlaitui 0.74 1.55 1.56 2.39 5.50
52 Rangte 1.25 2.63 2.63 4.04 9.29
53 Rotlang W 0.97 2.03 2.04 3.13 7.20
54 Rualalung 0.89 1.87 1.87 2.88 6.62
55 Runtung 0.52 1.10 1.10 1.70 3.90
56 Sachan 0.89 1.87 1.87 2.87 6.61
57 Sailen 0.53 1.12 1.12 1.72 3.95
58 Sairep 0.57 1.21 1.21 1.86 4.27
59 Sekhum 0.51 1.07 1.07 1.64 3.79
60 Serte 0.60 1.27 1.27 1.96 4.50
61 Sertlangpui 0.65 1.38 1.38 2.12 4.88
62 Sesawm 0.69 1.46 1.46 2.24 5.15
63 Silkur 0.71 1.50 1.50 2.30 5.30
64 Sumasumi 0.82 1.73 1.73 2.65 6.11
65 Tablabagh 1.69 3.56 3.57 5.48 12.61
66 Tawipui N - I 0.88 1.86 1.86 2.85 6.57
~ 473 ~
__________________________________________________________________________________
67 Tawipui N – II 1.04 2.19 2.19 3.37 7.76

68 Tawipui S 1.63 3.44 3.44 5.28 12.16
69 Thaizawl 0.46 0.97 0.97 1.48 3.42
70 Thangpui 0.49 1.04 1.04 1.60 3.69
71 Thangte 0.45 0.94 0.94 1.44 3.32
72 Thehlep 0.32 0.67 0.67 1.03 2.38
73 Thenhlum 1.45 3.06 3.06 4.71 10.83
74 Thingfal 1.71 3.60 3.60 5.53 12.73
75 Thlengang 0.50 1.05 1.05 1.61 3.71
76 Thuampui 0.63 1.33 1.33 2.05 4.72
77 Tiperegahat 1.70 3.58 3.58 5.50 12.66
78 Tlabung 4.79 10.09 10.10 15.51 35.70
79 Tualthu 0.91 1.91 1.91 2.93 6.75
80 Tuichawng 3.98 8.38 8.39 12.89 29.66
81 Tuikawi 1.25 2.64 2.64 4.06 9.34
82 Tuisenchhuah 0.65 1.36 1.36 2.09 4.82
83 Upper Lungrang S 0.72 1.52 1.52 2.34 5.39
84 Vaisam 0.57 1.20 1.20 1.84 4.24
85 Vanhne 0.98 2.07 2.07 3.19 7.33
86 Zawlpui (Lungsen) 2.04 4.30 4.30 6.61 15.21
87 Zehtet 1.17 2.46 2.47 3.79 8.72
88 Zodin 2.75 5.79 5.79 8.90 20.48
89 Zotuitlang 0.70 1.48 1.48 2.27 5.22
100.00 210.61 210.78 323.73 745.11
~ 474 ~
Annexures
__________________________________________________________________________________
Annexure 9.16
(Para 9.43)
Year-wise share of Village Councils under Kolasib district on tax devolution
(₹ in lakh)
Inter se
Sl.
No.
%
1 2 3 4 5 6 7 8 9
1 Bairabi N 3.43 4.57 6.03 5.96 5.97 9.16 31.68
2 Bairabi S 1.92 2.55 3.37 3.33 3.33 5.12 17.71
3 Bilkhawthlir N 1.91 2.54 3.35 3.31 3.32 5.09 17.61
4 Bilkhawthlir S 2.38 3.17 4.19 4.14 4.14 6.36 21.99
5 Bualpui North 1.62 2.15 2.85 2.81 2.82 4.32 14.95
6 Buhchangphai 1.80 2.39 3.16 3.12 3.13 4.80 16.61
7 Bukpui 1.09 1.45 1.91 1.89 1.89 2.91 10.05
8 Bukvanne 0.88 1.17 1.55 1.53 1.53 2.35 8.12
9 Hortoki 2.58 3.43 4.54 4.48 4.49 6.89 23.82
10 Kawnpui – I 2.17 2.89 3.82 3.77 3.77 5.80 20.05
11 Kawnpui – II 1.61 2.14 2.82 2.79 2.79 4.29 14.83
12 Kawnpui III 1.36 1.81 2.39 2.36 2.36 3.63 12.55
13 Kawnpui Venglai 2.22 2.95 3.90 3.85 3.86 5.92 20.49
14 Khamrang 0.88 1.17 1.55 1.53 1.53 2.35 8.12
15 Kolasib College Veng 1.37 1.83 2.41 2.38 2.39 3.66 12.67
16 Kolasib Diakkawn 4.43 5.89 7.78 7.69 7.69 11.82 40.86
17 Kolasib Electrict 1.16 1.55 2.04 2.02 2.02 3.10 10.72
18 Kolasib Gosen 0.85 1.13 1.49 1.48 1.48 2.27 7.85
19 Kolasib Hmarveng 2.69 3.58 4.73 4.67 4.68 7.18 24.84
20 Kolasib Khuangpuilam 1.59 2.12 2.80 2.77 2.77 4.25 14.71
21 Kolasib New Diakkawn 1.77 2.35 3.10 3.07 3.07 4.72 16.31
22 Kolasib Project Veng 1.22 1.62 2.14 2.12 2.12 3.26 11.26
23 Kolasib Rengtekawn 2.12 2.82 3.72 3.68 3.68 5.65 19.55
24 Kolasib Saidan 1.09 1.44 1.91 1.88 1.89 2.90 10.02
25 Kolasib Tuitha Veng 1.44 1.91 2.52 2.49 2.49 3.83 13.25
26 Kolasib Tumpui 1.77 2.35 3.10 3.07 3.07 4.71 16.30
27 Kolasib Venglai 3.08 4.09 5.41 5.34 5.35 8.21 28.40
28 Kolasib Venglai East 1.47 1.95 2.58 2.55 2.55 3.92 13.56
29 Kolasib Vengthar 2.59 3.45 4.55 4.50 4.50 6.92 23.92
30 Lungdai 1.93 2.56 3.39 3.35 3.35 5.14 17.79
31 Lungmuat 0.89 1.18 1.56 1.55 1.55 2.38 8.22
~ 475 ~
__________________________________________________________________________________
32 Meidum 1.45 1.93 2.55 2.52 2.52 3.87 13.39

33 Mualkhang 4.66 6.19 8.18 8.08 8.09 12.42 42.97
34 N.Chawnpui 1.10 1.47 1.94 1.91 1.91 2.94 10.17
35 N.Chhimluang 1.00 1.32 1.75 1.73 1.73 2.66 9.19
36 N.Hlimen 1.54 2.05 2.71 2.68 2.68 4.12 14.25
37 N.Thinglian 1.43 1.90 2.50 2.47 2.48 3.80 13.15
38 New Builum 0.89 1.18 1.56 1.54 1.54 2.37 8.20
39 Nisapui 0.97 1.29 1.71 1.69 1.69 2.59 8.97
40 North Chaltlang - I 0.96 1.28 1.69 1.67 1.67 2.57 8.89
41 North Chaltlang - II 0.78 1.03 1.37 1.35 1.35 2.08 7.18
42 Pangbalkawn 1.78 2.37 3.13 3.09 3.09 4.75 16.44
43 Phainuam 1.57 2.09 2.77 2.73 2.73 4.20 14.53
44 Phaisen 1.08 1.44 1.90 1.88 1.88 2.88 9.97
45 Saihapui K 1.26 1.67 2.21 2.18 2.18 3.35 11.58
46 Saihapui V 0.88 1.17 1.55 1.53 1.53 2.35 8.12
47 Saiphai 2.34 3.11 4.11 4.06 4.06 6.24 21.59
48 Saipum 2.42 3.22 4.25 4.20 4.21 6.46 22.35
49 Serkhan 0.93 1.24 1.63 1.61 1.61 2.48 8.57
50 Thingdawl 2.59 3.45 4.55 4.50 4.50 6.91 23.91
51 Thingthelh 0.95 1.26 1.67 1.65 1.65 2.54 8.77
52 Vairangte – I 3.04 4.04 5.33 5.27 5.27 8.10 28.01
53 Vairengte – II 3.81 5.06 6.69 6.61 6.62 10.16 35.14
54 Vairengte - IV State 1.59 2.11 2.79 2.76 2.76 4.24 14.65
Veng
55 Vairengte III IOC Veng 2.15 2.85 3.77 3.72 3.73 5.72 19.80
56 Zanlawn 1.50 2.00 2.64 2.60 2.61 4.00 13.85
100.00 132.93 175.59 173.53 173.67 266.74 922.47
~ 476 ~
Annexures
__________________________________________________________________________________
Annexure 9.17
(Para 9.43)
Year-wise share of Village Councils under Champhai district on tax devolution
(₹ in lakh)
Inter se
Sl.
No.
%
1 2 3 4 5 6 7 8 9
1 Bethel 3.82 4.65 6.15 6.06 6.06 9.31 32.23
2 Buang 1.05 1.28 1.70 1.67 1.67 2.57 8.90
3 Bulfekzawl 0.79 0.96 1.27 1.25 1.25 1.92 6.65
4 Bungzung 1.47 1.79 2.37 2.33 2.34 3.59 12.42
5 Champhai Jail Veng 0.75 0.92 1.21 1.19 1.19 1.83 6.34
6 Champhai Vengthar 1.92 2.34 3.09 3.05 3.05 4.68 16.20
7 Chawngtui E 0.82 1.00 1.32 1.30 1.30 1.99 6.90
8 Chhungte 0.64 0.78 1.03 1.01 1.01 1.56 5.39
9 Dilkawn 1.33 1.62 2.14 2.11 2.11 3.24 11.20
10 Dinthar 1.10 1.34 1.77 1.75 1.75 2.68 9.29
11 Dungtlang 1.29 1.57 2.08 2.05 2.05 3.15 10.90
12 Electric Veng 2.45 2.99 3.95 3.89 3.89 5.98 20.69
13 Farkawn 3.37 4.10 5.42 5.34 5.35 8.22 28.44
14 Hmunhmeltha 1.71 2.09 2.76 2.72 2.72 4.18 14.47
15 Hnahlan 3.15 3.83 5.06 4.99 5.00 7.67 26.56
16 Hruaikawn 1.09 1.33 1.75 1.73 1.73 2.65 9.19
17 Kahrawt 2.64 3.21 4.24 4.18 4.19 6.43 22.25
18 Kanan 2.75 3.35 4.43 4.37 4.37 6.71 23.24
19 Kelkang 1.35 1.64 2.17 2.14 2.14 3.29 11.39
20 Khankawn 0.80 0.97 1.28 1.26 1.26 1.94 6.72
21 Khawbung S 1.97 2.40 3.18 3.13 3.13 4.81 16.66
22 Khuangleng 2.11 2.57 3.39 3.34 3.34 5.14 17.78
23 Khuangphah 1.28 1.56 2.06 2.03 2.03 3.12 10.81
24 Khuangthing 1.66 2.03 2.68 2.64 2.64 4.06 14.05
25 Leisenzo 0.96 1.17 1.55 1.53 1.53 2.35 8.13
26 Leithum 0.90 1.09 1.44 1.42 1.42 2.19 7.56
27 Lianpui 0.97 1.18 1.56 1.54 1.54 2.36 8.17
28 Lungphunlian 0.76 0.93 1.22 1.21 1.21 1.85 6.42
29 Melbuk 1.04 1.26 1.67 1.64 1.64 2.52 8.74
30 Mualkawi 0.95 1.16 1.53 1.51 1.51 2.32 8.02
31 Murlen 1.14 1.39 1.83 1.81 1.81 2.78 9.62
~ 477 ~
__________________________________________________________________________________
32 N. Khawbung 1.30 1.58 2.09 2.06 2.06 3.16 10.94

33 N.Diltlang 1.01 1.23 1.63 1.61 1.61 2.47 8.55
34 New Champhai 1.21 1.48 1.95 1.92 1.92 2.95 10.23
35 New Hruaikawn 0.70 0.85 1.12 1.11 1.11 1.70 5.88
36 Ngur 2.19 2.67 3.53 3.48 3.48 5.35 18.52
37 Ruantlang 1.45 1.76 2.33 2.30 2.30 3.53 12.22
38 Ruantlang Mual Veng 0.83 1.01 1.34 1.32 1.32 2.03 7.02
39 Samthang 0.88 1.07 1.41 1.39 1.40 2.14 7.42
40 Sazep 0.88 1.07 1.41 1.39 1.40 2.14 7.42
41 Selam 1.71 2.08 2.75 2.71 2.71 4.17 14.43
42 Sesih 1.43 1.75 2.31 2.27 2.27 3.49 12.09
43 Thekpui 0.85 1.04 1.37 1.35 1.36 2.08 7.21
44 Thekte 1.15 1.40 1.85 1.82 1.82 2.80 9.68
45 Tlangsam 2.20 2.68 3.54 3.49 3.49 5.36 18.54
46 Tualcheng 1.26 1.54 2.03 2.00 2.00 3.07 10.64
47 Tuipui 0.91 1.10 1.46 1.44 1.44 2.21 7.65
48 Vaikhawtlang 1.62 1.97 2.61 2.57 2.57 3.95 13.67
49 Vangchhia 1.31 1.60 2.11 2.08 2.08 3.19 11.06
50 Vanzau 0.94 1.14 1.51 1.49 1.49 2.29 7.92
51 Vapar 1.36 1.66 2.20 2.16 2.17 3.33 11.52
52 Vaphai 2.52 3.07 4.06 4.00 4.00 6.15 21.29
53 Venglai 2.78 3.39 4.47 4.41 4.41 6.78 23.47
54 Vengsang 3.17 3.86 5.10 5.03 5.03 7.73 26.75
55 Vengthlang 5.77 7.04 9.29 9.16 9.17 14.08 48.75
56 Vengthlang North 1.43 1.74 2.30 2.27 2.27 3.49 12.08
57 Zawlsei 0.80 0.97 1.28 1.27 1.27 1.95 6.74
58 Zawngtetui 0.83 1.01 1.33 1.31 1.31 2.02 6.98
59 Zion Veng 1.81 2.21 2.91 2.87 2.87 4.41 15.28
60 Zokhawthar 3.29 4.01 5.29 5.22 5.22 8.02 27.76
61 Zote 1.66 2.03 2.68 2.64 2.64 4.06 14.05
62 Zotlang East 2.74 3.33 4.40 4.34 4.35 6.67 23.10
100.00 121.85 160.95 158.66 158.79 243.88 844.14
~ 478 ~
Annexures
__________________________________________________________________________________
Annexure 9.18
(Para 9.43)
Year-wise share of Village Councils under Mamit district on tax devolution
(₹ in lakh)
Inter se
Sl.
No.
%
1 2 3 4 5 6 7 8 9
1 Ailawng 0.65 1.12 1.48 1.45 1.45 2.23 7.72
2 Andermanik 1.44 2.47 3.26 3.19 3.20 4.91 17.03
(Mamit)
3 Bawlte 0.49 0.84 1.11 1.09 1.09 1.67 5.79
4 Bawngthah 0.54 0.92 1.22 1.20 1.20 1.84 6.38
5 Bawngva 0.99 1.69 2.24 2.19 2.19 3.37 11.68
6 Belkhai 0.84 1.44 1.91 1.87 1.87 2.87 9.95
7 Borai 1.59 2.73 3.61 3.53 3.54 5.43 18.84
8 Bunghmun West 1.33 2.29 3.03 2.96 2.97 4.56 15.81
(Zawlnuam)
9 Bungthuam 0.84 1.44 1.91 1.87 1.87 2.87 9.96
10 Chhippui - I 0.74 1.27 1.68 1.65 1.65 2.53 8.79
11 Chhippui - II 0.39 0.67 0.88 0.86 0.86 1.33 4.60
12 Chuhvel 0.54 0.94 1.24 1.21 1.21 1.86 6.45
13 Chungtlang 0.57 0.99 1.31 1.28 1.28 1.96 6.81
14 Damdiai 1.57 2.70 3.56 3.49 3.49 5.36 18.60
15 Damparengpui 2.56 4.40 5.81 5.69 5.70 8.75 30.35
16 Dampui 0.85 1.46 1.93 1.89 1.89 2.90 10.06
17 Dapchhuah 1.30 2.23 2.95 2.88 2.89 4.43 15.38
18 Darlak 1.16 2.00 2.64 2.58 2.58 3.97 13.77
19 Darlung 1.34 2.30 3.04 2.98 2.98 4.58 15.89
20 Hmunpui 1.25 2.15 2.83 2.78 2.78 4.27 14.80
21 Hnahva 1.63 2.80 3.70 3.62 3.63 5.57 19.32
22 Hreichuk 0.40 0.69 0.91 0.89 0.89 1.36 4.73
23 Hriphaw 1.05 1.80 2.37 2.32 2.33 3.57 12.39
24 Hruaitluang 0.75 1.29 1.70 1.66 1.66 2.56 8.87
25 Hruiduk 1.30 2.24 2.96 2.90 2.90 4.46 15.47
26 Kanghmun 1.07 1.83 2.42 2.37 2.37 3.64 12.63
27 Kanhmun 1.53 2.64 3.49 3.41 3.42 5.25 18.20
28 Kawrtethawveng 1.79 3.07 4.06 3.98 3.98 6.11 21.20
29 Kawrthah North 1.30 2.24 2.96 2.90 2.90 4.46 15.47
30 Kawrthah South 1.57 2.70 3.57 3.49 3.50 5.37 18.63
~ 479 ~
__________________________________________________________________________________
31 Khantlang 0.93 1.60 2.11 2.07 2.07 3.18 11.02

32 Khawhnai 0.77 1.32 1.74 1.71 1.71 2.62 9.10
33 Khawrihnim 0.81 1.39 1.84 1.80 1.80 2.76 9.59
34 Kolalian 1.32 2.26 2.99 2.93 2.93 4.50 15.61
35 Lallen 0.96 1.66 2.19 2.14 2.14 3.29 11.42
36 Lengte 0.69 1.18 1.57 1.53 1.53 2.36 8.17
37 Lianbuang (Bega 0.66 1.14 1.50 1.47 1.47 2.26 7.85
Bekya)
38 Luangpawl 1.23 2.11 2.78 2.72 2.73 4.19 14.53
39 Luimawi 0.65 1.12 1.49 1.45 1.46 2.24 7.76
40 Lungphun 0.47 0.81 1.07 1.05 1.05 1.61 5.58
41 Mamit Bazar veng 0.92 1.59 2.10 2.05 2.06 3.16 10.95
42 Mamit Chhim veng 1.70 2.92 3.86 3.78 3.78 5.80 20.13
43 Mamit Hmar veng 1.95 3.35 4.43 4.33 4.34 6.66 23.11
44 Mamit Venghlun 1.21 2.07 2.74 2.68 2.68 4.12 14.30
45 Marpara Mizo 0.58 1.00 1.32 1.30 1.30 1.99 6.92
Veng
46 Marpara North 2.08 3.58 4.73 4.63 4.63 7.11 24.68
47 Mualthuam 1.52 2.61 3.44 3.37 3.37 5.18 17.97
48 Nalzawl 0.98 1.68 2.22 2.17 2.17 3.34 11.58
49 New Eden 0.83 1.42 1.88 1.84 1.84 2.83 9.80
50 New Mamit 0.94 1.61 2.13 2.08 2.09 3.20 11.11
51 New West 1.94 3.34 4.41 4.32 4.32 6.63 23.01
Phaileng
52 Nghalchawm 0.60 1.03 1.37 1.34 1.34 2.06 7.13
53 North Sabual 0.64 1.09 1.44 1.41 1.42 2.17 7.54
54 Parvatui 0.64 1.10 1.45 1.42 1.42 2.18 7.57
55 Phaizau 0.53 0.91 1.21 1.18 1.18 1.82 6.30
56 Phuldungsei 2.31 3.98 5.26 5.15 5.15 7.91 27.45
57 Phuldungsei 1.10 1.89 2.50 2.45 2.45 3.77 13.07
Zampui
58 Phulpui West 1.09 1.88 2.48 2.43 2.44 3.74 12.98
59 Pukzing 0.69 1.19 1.57 1.54 1.54 2.36 8.20
60 Pukzing Vengthar 0.79 1.36 1.80 1.76 1.77 2.71 9.41
61 Rajiv Nagar - I 2.67 4.58 6.06 5.93 5.93 9.11 31.62
62 Rajiv Nagar – II 1.65 2.84 3.75 3.67 3.67 5.64 19.57
63 Rawpuichhip 1.40 2.40 3.17 3.11 3.11 4.77 16.56
64 Reiek 1.42 2.44 3.22 3.15 3.15 4.84 16.80
65 Rengdil 1.68 2.90 3.83 3.75 3.75 5.76 19.98
66 Rulpuihlim 0.44 0.75 0.99 0.97 0.97 1.49 5.16
67 Saikhawthlir 0.79 1.36 1.80 1.76 1.77 2.71 9.41
(Zawlnuam)
~ 480 ~
Annexures
__________________________________________________________________________________
68 Saithah 0.44 0.76 1.00 0.98 0.98 1.51 5.23

69 Serhmun West 0.52 0.89 1.17 1.15 1.15 1.76 6.11
70 Sihthiang 1.17 2.01 2.66 2.60 2.60 4.00 13.86
71 Silsury E 2.09 3.59 4.74 4.64 4.65 7.14 24.77
72 Silsury W 2.17 3.72 4.92 4.82 4.82 7.40 25.68
73 South Sabual 0.69 1.19 1.57 1.54 1.54 2.36 8.19
74 Suarhliap 0.80 1.38 1.82 1.79 1.79 2.74 9.52
75 Thaidawr 1.16 2.00 2.64 2.58 2.58 3.97 13.76
76 Thinghlun 0.88 1.52 2.01 1.97 1.97 3.02 10.48
77 Tuahzawl 0.56 0.95 1.26 1.23 1.24 1.90 6.59
78 Tuidam 1.59 2.73 3.61 3.53 3.54 5.43 18.84
79 Tuipuibari – I 2.07 3.55 4.69 4.59 4.60 7.06 24.50
80 Tuirum 0.87 1.50 1.98 1.94 1.94 2.98 10.32
81 Tumpanglui 0.76 1.31 1.73 1.70 1.70 2.61 9.04
82 Vawngawnzo 0.56 0.97 1.28 1.25 1.26 1.93 6.69
83 West Lungdar 0.91 1.57 2.07 2.03 2.03 3.12 10.81
84 West Phaileng 1.89 3.25 4.29 4.20 4.20 6.45 22.38
85 West Serzawl 0.55 0.94 1.24 1.22 1.22 1.87 6.48
86 Zamuang 1.04 1.78 2.35 2.30 2.31 3.54 12.29
87 Zawlnuam 0.86 1.48 1.95 1.91 1.91 2.94 10.19
thuampui
88 Zawlnuam 1.95 3.35 4.42 4.33 4.34 6.66 23.10
vengpui
89 Zawlpui 0.55 0.94 1.24 1.21 1.22 1.87 6.47
(Zawlnuam)
90 Zomuantlang 1.00 1.73 2.28 2.23 2.24 3.43 11.92
Total 100.00 171.92 227.09 222.36 222.55 341.80 1185.73
~ 481 ~
__________________________________________________________________________________
Annexure 9.19
(Para 9.43)
Year-wise share of Village Councils under Serchhip district on tax devolution
(₹ in lakh)
Inter se
Sl.
No.
%
1 2 3 4 5 6 7 8 9
1 Baktawng Vengpui 2.11 2.38 3.15 3.10 3.11 4.77 16.51
2 Bawktlang 0.91 1.02 1.35 1.33 1.33 2.05 7.09
3 Buangpui 1.01 1.14 1.51 1.48 1.49 2.28 7.90
4 Bungtlang 2.96 3.34 4.41 4.35 4.35 6.68 23.14
5 Chekawn 0.66 0.74 0.98 0.97 0.97 1.49 5.14
6 Chhiahtlang North 3.21 3.62 4.79 4.72 4.72 7.25 25.10
7 Chhiahtlang South 2.49 2.81 3.71 3.65 3.66 5.62 19.44
8 Chhingchhip 2.38 2.68 3.54 3.49 3.49 5.36 18.55
9 Chhuanthar 2.76 3.11 4.11 4.05 4.05 6.23 21.55
Tlangnuam
10 Darnam 1.50 1.69 2.23 2.20 2.20 3.38 11.71
11 E.Lungdar 4.04 4.56 6.02 5.93 5.94 9.12 31.58
12 Hmawngkawn 0.84 0.94 1.25 1.23 1.23 1.89 6.53
13 Hmuntha 1.45 1.64 2.16 2.13 2.13 3.27 11.33
14 Hmunzawl 1.31 1.48 1.96 1.93 1.93 2.96 10.25
15 Hriangtlang 1.18 1.33 1.76 1.74 1.74 2.67 9.24
16 Hualtu 1.65 1.86 2.46 2.42 2.42 3.72 12.88
17 Kanghmun S 1.06 1.19 1.58 1.55 1.55 2.39 8.26
18 Keitum 2.36 2.66 3.51 3.46 3.46 5.32 18.40
19 Khawbel 1.33 1.50 1.98 1.95 1.95 3.00 10.39
20 Khawlailung 2.66 3.00 3.97 3.91 3.91 6.00 20.79
21 Khumtung 1.58 1.79 2.36 2.33 2.33 3.57 12.37
22 Leng 1.25 1.41 1.86 1.83 1.84 2.82 9.76
23 Lungchhuan 1.25 1.41 1.86 1.83 1.84 2.82 9.76
24 Lungkawlh 1.35 1.52 2.01 1.98 1.98 3.04 10.52
25 Lungpho 1.41 1.59 2.11 2.08 2.08 3.19 11.05
26 Mualcheng 2.08 2.35 3.10 3.06 3.06 4.70 16.26
27 Mualpui Chhingchhip 0.53 0.59 0.79 0.77 0.77 1.19 4.12
28 N.Vanlaiphai 4.74 5.35 7.06 6.96 6.96 10.70 37.03
29 Neihloh 1.22 1.38 1.82 1.79 1.79 2.75 9.53
30 New Serchhip N 2.57 2.90 3.83 3.78 3.78 5.81 20.10
31 New Serchhip S 3.56 4.01 5.30 5.22 5.22 8.02 27.78
~ 482 ~
Annexures
__________________________________________________________________________________
32 Ngentiang 1.19 1.34 1.77 1.74 1.74 2.68 9.27

33 Piler 1.06 1.20 1.58 1.56 1.56 2.39 8.28
34 Rullam 1.22 1.37 1.81 1.79 1.79 2.75 9.51
35 Sailulak 1.38 1.55 2.05 2.02 2.02 3.10 10.74
36 Serchhip – I 2.37 2.67 3.53 3.47 3.48 5.34 18.49
37 Serchhip - II 2.21 2.50 3.30 3.25 3.25 4.99 17.29
38 Serchhip – III 1.57 1.77 2.33 2.30 2.30 3.53 12.23
39 Serchhip - IV 1.73 1.95 2.58 2.54 2.54 3.90 13.50
40 Serchhip – V 1.34 1.51 1.99 1.96 1.96 3.01 10.43
41 Serchhip Chanmari 2.00 2.25 2.98 2.93 2.93 4.51 15.60
Veng
42 Serchhip VI 1.66 1.87 2.47 2.43 2.43 3.74 12.93
43 Serchhip VII 1.57 1.77 2.33 2.30 2.30 3.53 12.23
44 Serchhip VIII 2.96 3.33 4.40 4.34 4.34 6.67 23.08
45 Sialhau 1.50 1.69 2.23 2.20 2.20 3.38 11.70
46 Sialsir 0.91 1.02 1.35 1.33 1.33 2.04 7.07
47 Thentlang 1.15 1.29 1.71 1.68 1.68 2.58 8.94
48 Thenzawl East 5.84 6.58 8.69 8.57 8.57 13.17 45.58
49 Thenzawl Kanan 1.29 1.45 1.92 1.89 1.89 2.91 10.07
50 Thenzawl Vengthar 1.17 1.32 1.75 1.72 1.72 2.65 9.17
51 Thenzawl West 3.37 3.80 5.02 4.94 4.95 7.60 26.30
52 Thinglian (Serchhip) 0.81 0.91 1.21 1.19 1.19 1.83 6.33
53 Vanchengte 0.76 0.85 1.12 1.11 1.11 1.70 5.90
54 Zote S 1.56 1.76 2.32 2.29 2.29 3.52 12.18
Total 100.00 112.76 148.95 146.74 146.87 225.56 780.89
~ 483 ~
__________________________________________________________________________________
Annexure 9.20
(Para 9.43)
Year-wise share of Village Councils under Saitual district on tax devolution
(₹ in lakh)
Inter se
Sl.
No.
%
1 2 3 4 5 6 7 8 9
1 Buhban 1.43 1.45 1.91 1.87 1.87 2.88 9.99
2 Changzawl 1.62 1.65 2.18 2.13 2.13 3.28 11.38
3 Chiahpui 1.80 1.83 2.42 2.36 2.37 3.63 12.61
4 Daido 1.80 1.83 2.41 2.36 2.37 3.63 12.61
5 Dilkhan 1.07 1.09 1.44 1.41 1.41 2.17 7.52
6 Hliappui 2.82 2.86 3.78 3.70 3.70 5.69 19.73
7 Hrianghmun 1.52 1.55 2.04 2.00 2.00 3.08 10.67
8 Kawlbem 2.69 2.74 3.62 3.54 3.54 5.44 18.88
9 Keifang Leitan 2.10 2.14 2.82 2.77 2.77 4.25 14.75
10 Keifang Venghlun 2.41 2.45 3.23 3.16 3.17 4.86 16.87
11 Keifang Venglai 2.05 2.08 2.75 2.69 2.70 4.14 14.37
12 Khanpui 2.59 2.63 3.48 3.40 3.41 5.23 18.15
13 Khawkawn 1.84 1.87 2.47 2.42 2.42 3.72 12.89
14 Khawlian 3.32 3.37 4.46 4.36 4.37 6.71 23.27
15 Lailak 1.73 1.75 2.32 2.27 2.27 3.49 12.09
16 Lamherh 1.48 1.50 1.99 1.95 1.95 2.99 10.38
17 Lamzawl 1.35 1.37 1.81 1.77 1.77 2.72 9.44
18 Lenchim 1.09 1.11 1.46 1.43 1.43 2.20 7.63
19 Luangpawn 1.98 2.02 2.66 2.61 2.61 4.01 13.90
20 Maite 2.36 2.39 3.16 3.10 3.10 4.76 16.51
21 Mimbung 4.09 4.16 5.49 5.37 5.38 8.26 28.65
22 Mualpheng 1.60 1.63 2.15 2.11 2.11 3.24 11.24
23 N. Khawlek 1.89 1.92 2.53 2.48 2.48 3.81 13.21
24 N. Lungpher 1.71 1.74 2.30 2.25 2.25 3.46 12.01
25 NE Khawdungsei 3.01 3.06 4.04 3.95 3.96 6.08 21.08
26 NE. Tlangnuam 1.48 1.50 1.99 1.95 1.95 2.99 10.38
27 Ngopa 5.90 5.99 7.91 7.75 7.76 11.91 41.32
28 Pawlrang 1.73 1.75 2.32 2.27 2.27 3.49 12.10
29 Phuaibuang 3.96 4.02 5.31 5.20 5.21 8.00 27.74
30 Phullen 3.22 3.27 4.33 4.23 4.24 6.51 22.58
31 Ruallung 1.68 1.70 2.25 2.20 2.20 3.39 11.75
~ 484 ~
Annexures
__________________________________________________________________________________
32 Rulchawm 1.87 1.90 2.51 2.46 2.46 3.78 13.12

33 Saichal 1.92 1.95 2.58 2.53 2.53 3.89 13.48
34 Saitual I 3.30 3.36 4.43 4.34 4.34 6.67 23.15
35 Saitual II 3.29 3.34 4.41 4.32 4.33 6.64 23.05
36 Saitual III 2.79 2.83 3.74 3.66 3.66 5.63 19.52
37 Sihfa 1.96 1.99 2.63 2.57 2.57 3.95 13.72
38 Suangpuilawn 3.52 3.58 4.73 4.63 4.63 7.11 24.67
39 Tawizo 1.33 1.35 1.78 1.74 1.74 2.68 9.29
40 Teikhang 2.81 2.85 3.76 3.69 3.69 5.66 19.65
41 Thanglailung 1.73 1.76 2.32 2.27 2.28 3.50 12.13
42 Tualbung 1.85 1.88 2.48 2.43 2.43 3.73 12.96
43 Vanbawng 2.50 2.54 3.36 3.29 3.29 5.05 17.53
44 Zawngin 1.81 1.83 2.42 2.37 2.37 3.65 12.65
Total 100.00 101.59 134.20 131.39 131.50 201.96 700.63
~ 485 ~
__________________________________________________________________________________
Annexure 9.21
(Para 9.43)
Year-wise share of Village Councils under Khawzawl district on tax devolution
(₹ in lakh)
Inter se
Sl.
No.
%
1 2 3 4 5 6 7 8 9
1 Aiduzawl 1.55 1.17 1.55 1.52 1.52 2.34 8.10
2 Arro 0.98 0.74 0.98 0.96 0.96 1.48 5.12
3 Biate 4.81 3.64 4.81 4.71 4.71 7.24 25.11
4 Chalrang 1.90 1.44 1.90 1.86 1.86 2.86 9.91
5 Chawngtlai 3.66 2.77 3.66 3.58 3.58 5.50 19.09
6 Chhawrtui 2.67 2.02 2.67 2.61 2.62 4.02 13.93
7 Dulte 2.25 1.70 2.25 2.20 2.21 3.39 11.75
8 Hmuncheng 1.64 1.24 1.64 1.60 1.61 2.47 8.56
9 Kawlkulh N 2.79 2.11 2.79 2.74 2.74 4.20 14.59
10 Kawlkulh South 4.99 3.78 4.99 4.89 4.89 7.51 26.06
11 Khawhai 5.60 4.24 5.60 5.48 5.49 8.43 29.23
12 Khawzawl Arro Veng 1.28 0.97 1.28 1.26 1.26 1.93 6.70
13 Khawzawl Darngawn 2.71 2.05 2.71 2.65 2.66 4.08 14.15
14 Khawzawl Dinthar 3.15 2.38 3.15 3.08 3.08 4.74 16.43
15 Khawzawl Electric 1.49 1.12 1.49 1.45 1.46 2.24 7.76
16 Khawzawl Hermon 3.21 2.43 3.21 3.14 3.15 4.83 16.76
17 Khawzawl Kawnzar 1.81 1.37 1.81 1.77 1.77 2.72 9.43
18 Khawzawl Vengthar 6.14 4.65 6.14 6.01 6.02 9.24 32.07
19 Khawzawl Zaingen 2.74 2.07 2.74 2.68 2.69 4.12 14.31
20 Khawzawl Zuchhip 3.03 2.29 3.02 2.96 2.96 4.55 15.79
21 Khualen 1.22 0.92 1.22 1.19 1.19 1.83 6.36
22 Lungtan 1.81 1.37 1.81 1.78 1.78 2.73 9.47
23 Lungvar 2.15 1.63 2.15 2.11 2.11 3.24 11.23
24 Neihdawn 2.05 1.55 2.05 2.01 2.01 3.09 10.71
25 New Chalrang 1.84 1.39 1.84 1.80 1.80 2.77 9.60
26 Ngaizawl 2.62 1.98 2.62 2.57 2.57 3.94 13.68
27 Pamchung 1.81 1.37 1.81 1.77 1.78 2.73 9.46
28 Puilo 1.65 1.25 1.65 1.62 1.62 2.49 8.64
29 Rabung 4.31 3.26 4.31 4.22 4.22 6.49 22.51
30 Riangtlei 2.20 1.67 2.20 2.16 2.16 3.32 11.51
31 Sialhawk 4.73 3.58 4.73 4.63 4.63 7.11 24.68
~ 486 ~
Annexures
__________________________________________________________________________________
32 Tlangmawi 1.67 1.26 1.67 1.63 1.63 2.51 8.70

33 Tlangpui 2.72 2.06 2.72 2.66 2.66 4.09 14.18
34 Tualpui 1.59 1.20 1.58 1.55 1.55 2.39 8.28
35 Tualte 3.00 2.27 3.00 2.94 2.94 4.52 15.66
36 Vanchengpui 2.70 2.04 2.70 2.64 2.65 4.06 14.09
37 Vangtlang 1.61 1.22 1.61 1.58 1.58 2.43 8.41
38 Vankal 1.91 1.44 1.91 1.87 1.87 2.87 9.95
Total 100.00 75.67 99.95 97.90 97.98 150.48 521.98
~ 487 ~
__________________________________________________________________________________
Annexure 9.22
(Para 9.43)
Year-wise share of Village Councils under Hnahthial district on tax devolution

(₹ in lakh)
Sl. Inter se
Village Council 2021-22 2022-23 2023-24 2024-25 2025-26 Total
No. share in %
1 2 3 4 5 6 7 8 9
1 Aithur 1.69 1.09 1.44 1.41 1.41 2.16 7.50
2 Bualpui H 3.38 2.17 2.87 2.81 2.81 4.31 14.97
3 Bualpui V 2.13 1.37 1.81 1.77 1.77 2.72 9.45
4 Cherhlun 6.68 4.30 5.68 5.55 5.55 8.53 29.62
5 Chhipphir 3.67 2.36 3.12 3.05 3.05 4.68 16.26
6 Darzo 4.22 2.72 3.59 3.51 3.51 5.39 18.72
7 Denlung 1.45 0.94 1.24 1.21 1.21 1.86 6.45
8 Hnahthial N - I 5.89 3.79 5.01 4.90 4.90 7.53 26.13
9 Hnahthial North II 4.55 2.93 3.87 3.78 3.78 5.81 20.18
10 Hnahthial S - I 2.56 1.65 2.18 2.13 2.13 3.27 11.36
11 Hnahthial S - II 3.96 2.55 3.37 3.29 3.29 5.05 17.55
12 Hnahthial South III 3.00 1.93 2.55 2.49 2.49 3.83 13.30
13 Khawhri 1.83 1.18 1.56 1.52 1.52 2.34 8.11
14 Leite 2.54 1.64 2.16 2.11 2.11 3.25 11.27
15 Lungmawi 1.85 1.19 1.57 1.54 1.54 2.36 8.21
16 Lungpuitlang 1.56 1.00 1.33 1.30 1.30 1.99 6.92
17 Muallianpui 3.83 2.47 3.26 3.18 3.19 4.89 16.99
18 New Kawnpui 1.62 1.04 1.38 1.34 1.34 2.07 7.17
(Hnahthial)
19 New Ngharchhip 1.77 1.14 1.51 1.47 1.47 2.26 7.85
20 Ngharchhip 1.45 0.93 1.23 1.20 1.20 1.85 6.42
21 Pangzawl North 3.63 2.34 3.09 3.02 3.02 4.64 16.12
22 Pangzawl South 5.00 3.22 4.25 4.15 4.16 6.38 22.16
23 Phaileng S 1.67 1.08 1.42 1.39 1.39 2.13 7.41
24 Rawpui 2.63 1.69 2.24 2.19 2.19 3.36 11.67
25 Rotlang East 2.46 1.59 2.09 2.05 2.05 3.15 10.92
26 S.Chawngtui 2.53 1.63 2.15 2.10 2.11 3.24 11.23
27 S.Lungleng 1.50 0.97 1.28 1.25 1.25 1.92 6.67
28 South Vanlaiphai 6.14 3.95 5.22 5.10 5.10 7.84 27.21
29 Tarpho 1.71 1.10 1.45 1.42 1.42 2.18 7.58
30 Thiltlang 3.37 2.17 2.87 2.80 2.81 4.31 14.96
31 Thingsai 7.18 4.62 6.11 5.96 5.97 9.17 31.83
32 Tuipui D 2.54 1.64 2.16 2.11 2.12 3.25 11.28
Total 100.00 64.40 85.06 83.10 83.17 127.74 443.47
~ 488 ~
Annexures
__________________________________________________________________________________
Annexure 9.23
(Para 9.43)
Year-wise share of Village Councils under Siaha district on tax devolution
(₹ in lakh)
Inter se
Sl.
No.
%
1 2 3 4 5 6 7 8 9
1 AHMYPI 0.57 0.61 0.81 0.79 0.79 1.22 4.22
2 AMOBYU BEIVAH 1.04 1.11 1.47 1.44 1.45 2.22 7.69
3 AMOBYU CH 0.41 0.44 0.58 0.57 0.57 0.87 3.01
4 AMOBYU VAIHTHIEH 1.01 1.08 1.43 1.40 1.40 2.16 7.48
5 AMOHTLAH 0.96 1.03 1.36 1.33 1.34 2.05 7.11
6 BYMARI 0.92 0.99 1.31 1.28 1.28 1.97 6.83
7 CHAKHEI - I 1.12 1.20 1.58 1.56 1.56 2.39 8.28
8 CHAKHEI - II 0.82 0.88 1.17 1.15 1.15 1.76 6.11
9 CHAKHEITLAH 0.65 0.69 0.92 0.90 0.90 1.38 4.79
10 CHAPI - I 0.76 0.82 1.08 1.06 1.06 1.63 5.64
11 CHAPI - II 0.93 1.00 1.32 1.29 1.29 1.99 6.88
12 CHAPI - III 0.62 0.66 0.88 0.86 0.86 1.32 4.58
13 CHHAOLO - I 0.99 1.06 1.40 1.38 1.38 2.12 7.34
14 CHHAOLO - II 0.78 0.83 1.10 1.08 1.08 1.66 5.77
15 CHHAOLO - III 0.69 0.74 0.98 0.96 0.96 1.47 5.10
16 CHHEIHLU 0.93 1.00 1.32 1.29 1.29 1.99 6.89
17 COLLEGE VAIH - I 2.05 2.20 2.90 2.85 2.85 4.38 15.18
18 COLLEGE VAIH - II 3.05 3.27 4.32 4.24 4.25 6.52 22.61
19 COUNCIL VAIH 1.84 1.98 2.61 2.56 2.57 3.94 13.66
20 ECM VAIH 1.47 1.58 2.08 2.05 2.05 3.14 10.90
21 IANA 0.93 1.00 1.32 1.30 1.30 1.99 6.91
22 KAOCHAO EAST - I 0.82 0.88 1.16 1.14 1.14 1.75 6.06
23 KAOCHAO EAST - II 1.14 1.23 1.62 1.59 1.59 2.44 8.47
24 Khaikhy 0.58 0.62 0.82 0.80 0.80 1.24 4.28
25 KHOPAI 1.11 1.19 1.57 1.55 1.55 2.38 8.24
26 KIASIE 0.84 0.90 1.19 1.17 1.17 1.80 6.24
27 LAKI -I 1.13 1.21 1.60 1.57 1.57 2.42 8.37
28 LAKI -II 0.99 1.06 1.40 1.38 1.38 2.12 7.33
29 LATY 0.64 0.68 0.90 0.89 0.89 1.37 4.73
30 LOBO - I 0.96 1.04 1.37 1.34 1.34 2.06 7.15
31 LOBO - II 0.67 0.72 0.95 0.93 0.93 1.43 4.95
~ 489 ~
__________________________________________________________________________________
32 LODAWH 0.72 0.77 1.02 1.00 1.00 1.53 5.32

33 Longmasu 0.76 0.81 1.07 1.06 1.06 1.62 5.62
34 Lorrain Ville 0.60 0.64 0.84 0.83 0.83 1.27 4.42
35 LUNGPUK 0.73 0.79 1.04 1.02 1.02 1.57 5.43
36 Lungpuk II 0.79 0.85 1.12 1.10 1.10 1.69 5.86
37 Lungpuk III 0.66 0.71 0.94 0.92 0.92 1.41 4.90
38 MAISA 0.70 0.75 0.99 0.97 0.97 1.49 5.16
39 MAWHRE 1.06 1.13 1.50 1.47 1.47 2.26 7.84
40 MEISATLA -I 1.56 1.67 2.21 2.17 2.17 3.33 11.55
41 MEISATLA -II 0.97 1.04 1.37 1.35 1.35 2.07 7.18
42 MEISAVAIH EAST 1.56 1.68 2.21 2.17 2.18 3.34 11.59
43 MEISAVAIH WEST 1.21 1.30 1.71 1.68 1.68 2.59 8.97
44 MIEPU I 0.52 0.56 0.74 0.73 0.73 1.12 3.89
45 Miepu II 0.72 0.77 1.02 1.00 1.00 1.54 5.34
46 New Colony - IV 0.95 1.02 1.34 1.32 1.32 2.03 7.03
47 NEW COLONY-I 2.02 2.16 2.86 2.81 2.81 4.31 14.95
48 NEW COLONY-II 1.50 1.61 2.12 2.08 2.09 3.20 11.10
49 NEW COLONY-III 1.28 1.38 1.82 1.79 1.79 2.75 9.53
50 NEW LATAWH 0.90 0.97 1.28 1.26 1.26 1.94 6.71
51 NEW SAIHA EAST 2.02 2.17 2.87 2.82 2.82 4.33 15.00
52 NEW SAIHA WEST 4.21 4.52 5.97 5.86 5.87 9.01 31.23
53 New Saikao 0.49 0.53 0.69 0.68 0.68 1.05 3.63
54 New Siaha East - II 1.45 1.56 2.06 2.02 2.02 3.11 10.77
55 NO-AOTLA - I 1.70 1.82 2.41 2.36 2.37 3.63 12.59
56 NO-AOTLA - II 1.58 1.70 2.25 2.20 2.21 3.39 11.75
57 NO-AOTLA - III 0.48 0.51 0.68 0.66 0.66 1.02 3.53
58 OLD TISOPI 0.78 0.83 1.10 1.08 1.08 1.66 5.75
59 Pala 1.02 1.09 1.44 1.42 1.42 2.18 7.56
60 Phura N 0.99 1.06 1.40 1.37 1.38 2.11 7.32
61 Phura S 0.89 0.96 1.27 1.24 1.25 1.91 6.63
62 RIASIKAH 0.60 0.64 0.85 0.84 0.84 1.28 4.45
63 SAIHA VAIHPI - I 2.13 2.28 3.02 2.96 2.96 4.55 15.78
64 Saikao 1.03 1.10 1.46 1.43 1.43 2.20 7.62
65 Saikao Beivah 0.78 0.84 1.11 1.09 1.09 1.68 5.82
66 SIAHA VAIHPI - II 1.49 1.60 2.11 2.07 2.07 3.19 11.04
67 SIAHA VAIHPI -III 1.85 1.99 2.63 2.58 2.58 3.96 13.73
68 SIAHATLA - I 2.04 2.19 2.89 2.84 2.84 4.37 15.13
69 SIAHATLA - II 2.24 2.40 3.17 3.12 3.12 4.79 16.61
70 SIAHATLA - III 1.37 1.47 1.95 1.91 1.91 2.94 10.19
~ 490 ~
Annexures
__________________________________________________________________________________
71 SIASI 0.78 0.84 1.10 1.08 1.08 1.67 5.77

72 SIATA -I 1.00 1.07 1.41 1.39 1.39 2.13 7.39
73 SIATA-II 0.72 0.77 1.02 1.00 1.00 1.54 5.33
74 SIATLAI 0.69 0.74 0.98 0.96 0.96 1.48 5.13
75 THEIRI 0.98 1.05 1.39 1.36 1.36 2.09 7.25
76 THEIVA 1.07 1.14 1.51 1.48 1.48 2.28 7.90
77 THIAHRA 0.86 0.92 1.21 1.19 1.19 1.83 6.35
78 THOSAI 0.81 0.87 1.15 1.13 1.13 1.74 6.03
79 Tipa Beivah 0.97 1.04 1.38 1.35 1.35 2.08 7.20
80 Tipa D-I 0.81 0.87 1.15 1.13 1.13 1.74 6.02
81 Tipa D-II 0.89 0.95 1.25 1.23 1.23 1.89 6.56
82 Tipa V-I 1.15 1.24 1.63 1.60 1.60 2.46 8.54
83 Tipa V-II 0.69 0.75 0.98 0.97 0.97 1.49 5.15
84 Tipa V-III 0.80 0.86 1.14 1.12 1.12 1.72 5.96
85 TIPI FERRY 0.64 0.69 0.91 0.89 0.89 1.37 4.76
86 Tisi - I 0.91 0.98 1.29 1.27 1.27 1.95 6.76
87 Tisi - II 0.91 0.97 1.29 1.26 1.27 1.94 6.73
88 TISOPI 0.93 1.00 1.32 1.30 1.30 1.99 6.90
89 Tokalo 0.91 0.98 1.29 1.27 1.27 1.95 6.76
90 Vahia 1.10 1.18 1.56 1.53 1.53 2.36 8.17
91 ZAWNGLING B 0.96 1.03 1.36 1.33 1.33 2.05 7.09
92 Zawngling Lotai 0.72 0.77 1.02 1.00 1.00 1.53 5.31
93 Zyhno 0.96 1.03 1.36 1.34 1.34 2.06 7.13
Total 100.00 107.31 141.74 139.20 139.31 213.96 741.52
~ 491 ~
__________________________________________________________________________________
Annexure 9.24
(Para 9.43)
Year-wise share of Village Councils under Lawngtlai district on tax devolution
(₹ in lakh)
Inter se
Sl.
No.
%
1 2 3 4 5 6 7 8 9
1 Adubangasora 0.34 0.66 0.88 0.87 0.87 1.33 4.60
2 Ajasora-I 0.42 0.84 1.11 1.09 1.10 1.68 5.82
3 Ajasora-II 0.47 0.94 1.24 1.22 1.22 1.88 6.50
4 Ajasora-III 0.35 0.69 0.91 0.90 0.90 1.38 4.78
5 AOC Veng 0.94 1.87 2.46 2.43 2.43 3.74 12.93
6 Archhuang 0.44 0.87 1.15 1.13 1.13 1.74 6.02
7 Arotinagar 0.32 0.63 0.84 0.83 0.83 1.27 4.40
8 Baganpara 0.49 0.97 1.28 1.26 1.26 1.93 6.69
9 Bajeisora 0.50 0.98 1.30 1.28 1.28 1.97 6.83
10 Bandukbanga 0.52 1.04 1.37 1.35 1.35 2.08 7.19
11 Baraguisury 0.31 0.62 0.82 0.81 0.81 1.24 4.28
12 Barapansury East 0.62 1.22 1.62 1.60 1.60 2.45 8.49
13 Barapansury I 1.00 1.98 2.61 2.58 2.58 3.96 13.71
14 Barapansury-II 0.92 1.81 2.39 2.36 2.36 3.63 12.55
15 Barkalak 0.44 0.87 1.15 1.14 1.14 1.75 6.04
16 Barkobakhali 0.42 0.84 1.11 1.09 1.09 1.68 5.80
17 Barkobakhali II 0.33 0.66 0.87 0.85 0.86 1.31 4.55
18 Betbonya 0.30 0.60 0.79 0.78 0.78 1.19 4.13
19 Billosora 0.39 0.78 1.03 1.01 1.01 1.56 5.38
20 BOLISORA 0.70 1.38 1.82 1.79 1.80 2.76 9.54
21 Boranasury 0.34 0.67 0.89 0.87 0.88 1.34 4.65
22 Boroituli 0.33 0.65 0.86 0.85 0.85 1.30 4.51
23 Bualpui Ng I 1.04 2.05 2.71 2.68 2.68 4.11 14.23
24 Bualpui Ng II 0.41 0.81 1.07 1.06 1.06 1.63 5.63
25 Bungtlang S I 0.88 1.75 2.31 2.27 2.28 3.49 12.09
26 Bungtlang S II 0.67 1.32 1.74 1.72 1.72 2.64 9.14
27 CHAMDUR P I 0.54 1.06 1.40 1.38 1.38 2.13 7.36
28 CHAMDUR P II 0.36 0.70 0.93 0.92 0.92 1.41 4.87
29 CHAMDURTLANG I 0.45 0.89 1.18 1.16 1.16 1.79 6.18
30 CHAMDURTLANG II 0.23 0.45 0.59 0.58 0.59 0.90 3.11
31 Chaminisora 0.27 0.54 0.71 0.70 0.70 1.08 3.73
~ 492 ~
Annexures
__________________________________________________________________________________
32 Charluitlang 0.28 0.54 0.72 0.71 0.71 1.09 3.78

33 Chawngtelui 0.40 0.78 1.04 1.02 1.02 1.57 5.43
34 Chawngte-P 1.17 2.32 3.06 3.02 3.02 4.64 16.05
35 Chawnhu 0.37 0.73 0.97 0.96 0.96 1.47 5.09
36 Chawntlangpui 0.27 0.54 0.71 0.70 0.70 1.08 3.74
37 Cheural 0.72 1.43 1.89 1.87 1.87 2.87 9.93
38 CHIKHURLUI 0.40 0.79 1.04 1.02 1.02 1.57 5.45
39 Chongrasury 0.25 0.50 0.66 0.65 0.65 1.00 3.47
40 Chotapansury 0.54 1.08 1.42 1.40 1.40 2.16 7.47
41 Chotoguisury-I 0.35 0.70 0.92 0.91 0.91 1.40 4.84
42 Chotoguisury-II 0.31 0.62 0.82 0.81 0.81 1.24 4.29
43 Chotokobakhali 0.29 0.58 0.77 0.76 0.76 1.16 4.02
44 College Veng 1.70 3.37 4.45 4.39 4.40 6.75 23.36
45 Council Veng 1.44 2.84 3.76 3.70 3.71 5.69 19.71
46 Damlui 0.51 1.01 1.34 1.32 1.32 2.03 7.03
47 Darnamtlang 0.30 0.59 0.78 0.77 0.77 1.18 4.07
48 Devasora N 0.62 1.22 1.62 1.59 1.59 2.45 8.48
49 Devasora S 0.47 0.92 1.22 1.20 1.20 1.85 6.40
50 Diltlang S 0.74 1.47 1.94 1.92 1.92 2.95 10.20
51 DUMZAUTLANG 0.40 0.79 1.04 1.02 1.02 1.57 5.45
52 Dursora 0.34 0.67 0.89 0.87 0.87 1.34 4.65
53 Electric Veng 1.76 3.49 4.61 4.55 4.55 6.99 24.19
54 FANGFARLUI 0.29 0.57 0.76 0.75 0.75 1.15 3.98
55 Fulsora 0.26 0.51 0.67 0.66 0.66 1.01 3.51
56 Fultuli 0.43 0.86 1.14 1.12 1.12 1.72 5.95
57 Futsury 0.52 1.03 1.36 1.34 1.35 2.07 7.15
58 Gabasury 0.27 0.54 0.72 0.71 0.71 1.09 3.76
59 Gerakuluksora 0.39 0.76 1.01 1.00 1.00 1.53 5.30
60 Gerasury 0.32 0.64 0.84 0.83 0.83 1.28 4.41
61 Golasury 0.54 1.08 1.42 1.40 1.40 2.15 7.45
62 Gulsingbapsora 0.38 0.76 1.00 0.99 0.99 1.52 5.25
63 Hmawngbu 0.77 1.52 2.01 1.98 1.98 3.05 10.55
64 Hmawngbuchhuah 0.42 0.83 1.09 1.08 1.08 1.65 5.72
65 Hmunlai 0.30 0.59 0.78 0.77 0.77 1.19 4.10
66 HMUNNUAM 0.48 0.95 1.26 1.24 1.24 1.91 6.61
67 Hruitezawl 0.60 1.19 1.58 1.56 1.56 2.39 8.27
68 Jamersury 0.26 0.51 0.67 0.66 0.67 1.02 3.54
69 Jaruldubosora 0.48 0.96 1.27 1.25 1.25 1.92 6.65
70 Jarulsury-I 0.34 0.68 0.90 0.88 0.88 1.36 4.70
~ 493 ~
__________________________________________________________________________________
71 Jarulsury-II 0.45 0.88 1.17 1.15 1.15 1.77 6.12

72 Jognasuri 0.81 1.60 2.12 2.09 2.09 3.21 11.10
73 Kakichhuah 0.43 0.86 1.13 1.11 1.12 1.71 5.93
74 Kamalanagar V 0.55 1.09 1.44 1.42 1.42 2.18 7.55
75 Kamalanagar VI 0.35 0.70 0.93 0.91 0.91 1.40 4.86
76 Kamalanagar-I 1.53 3.03 4.01 3.95 3.96 6.08 21.03
77 Kamalanagar-II 1.41 2.79 3.69 3.63 3.64 5.59 19.33
78 Kamalanagar-III 1.25 2.47 3.26 3.21 3.22 4.94 17.10
79 Kamalanagar-IV 0.76 1.51 1.99 1.97 1.97 3.02 10.46
80 Kamtuli 0.47 0.93 1.23 1.22 1.22 1.87 6.46
81 Karlui - I 0.56 1.11 1.47 1.45 1.45 2.23 7.72
82 Karlui II 0.52 1.03 1.35 1.34 1.34 2.05 7.10
83 Kawlchaw W 0.38 0.76 1.00 0.98 0.99 1.51 5.24
84 Kawnkhua 0.29 0.58 0.76 0.75 0.75 1.16 4.01
85 Kawrthindeng 0.83 1.64 2.16 2.13 2.14 3.28 11.35
86 Kukurduleya 0.55 1.09 1.44 1.42 1.42 2.18 7.53
87 Kurbalovasora 0.50 0.98 1.30 1.28 1.28 1.96 6.79
88 LAITLANG 0.32 0.64 0.84 0.83 0.83 1.28 4.43
89 Lakkisury 0.41 0.82 1.08 1.06 1.06 1.64 5.66
90 Lawngtlai I (Vengpui - I) 1.61 3.19 4.21 4.15 4.16 6.38 22.09
91 Lawngtlai I (Vengpui - II) 0.66 1.30 1.72 1.70 1.70 2.61 9.03
92 Lawngtlai II (Bazar 1.96 3.88 5.12 5.05 5.06 7.77 26.88
Veng)
93 Lawngtlai IV 2.85 5.64 7.45 7.34 7.35 11.29 39.06
(Chandmary - II)
94 Lawngtlai IV (Chanmary 1.24 2.46 3.25 3.21 3.21 4.93 17.05
- I)
95 Lawngtlai-III 1.83 3.62 4.78 4.72 4.72 7.25 25.09
96 Longpuighat 0.47 0.93 1.22 1.21 1.21 1.85 6.41
97 Longpuighat-II 0.37 0.73 0.97 0.95 0.96 1.47 5.08
98 Ludisora 0.36 0.71 0.94 0.93 0.93 1.43 4.95
99 Lunghauka 0.53 1.05 1.39 1.37 1.37 2.11 7.30
100 Lungpher 0.83 1.65 2.17 2.14 2.15 3.30 11.41
101 Lungtian II 0.31 0.62 0.82 0.80 0.81 1.24 4.28
102 Lungtian-I 0.62 1.23 1.63 1.61 1.61 2.47 8.55
103 Lungzarhtum 0.59 1.16 1.53 1.51 1.51 2.32 8.02
104 M.KAWNPUI 0.68 1.34 1.77 1.74 1.75 2.68 9.28
105 Mainabapsora-I 0.44 0.87 1.15 1.13 1.14 1.74 6.04
106 Mainabapsora-II 0.40 0.78 1.04 1.02 1.02 1.57 5.43
107 Mampui 0.57 1.14 1.50 1.48 1.48 2.28 7.87
108 Mandirasora 0.50 0.99 1.31 1.29 1.29 1.99 6.88
~ 494 ~
Annexures
__________________________________________________________________________________
109 Massury 0.31 0.62 0.82 0.80 0.81 1.24 4.28

110 Mautlang (Lawngtlai) 0.39 0.77 1.01 1.00 1.00 1.54 5.32
111 Montola 0.50 0.99 1.31 1.29 1.29 1.99 6.87
112 Mualbu L 0.39 0.78 1.03 1.01 1.01 1.56 5.39
113 Nagdarasora 0.35 0.70 0.93 0.91 0.91 1.40 4.86
114 Nalbonya 0.42 0.84 1.11 1.09 1.09 1.68 5.81
115 New Jaganasury I 0.48 0.95 1.25 1.23 1.24 1.90 6.57
116 New Jaganasury II 0.34 0.66 0.88 0.87 0.87 1.33 4.60
117 New Jaganasury III 0.34 0.67 0.88 0.87 0.87 1.33 4.61
118 Ngengpuikai 1.06 2.09 2.76 2.72 2.72 4.18 14.48
119 Ngengpuitlang 0.45 0.90 1.18 1.17 1.17 1.80 6.22
120 NGHALIMLUI 0.77 1.53 2.02 2.00 2.00 3.07 10.62
121 NGUNLINGKHUA 0.41 0.81 1.07 1.05 1.05 1.62 5.61
122 Old Bajeisora 0.34 0.66 0.88 0.86 0.87 1.33 4.60
123 Paithar 0.34 0.67 0.88 0.87 0.87 1.34 4.63
124 PANDAWNGLUI 0.43 0.85 1.12 1.11 1.11 1.70 5.90
125 Pangkhua 0.85 1.67 2.21 2.18 2.18 3.35 11.60
126 Parva IV 0.49 0.97 1.28 1.26 1.27 1.94 6.73
127 Parva-I 0.74 1.47 1.94 1.91 1.92 2.94 10.18
128 Parva-II 0.38 0.75 0.99 0.98 0.98 1.50 5.20
129 Parva-III 0.28 0.56 0.73 0.72 0.72 1.11 3.85
130 Pelenosora 0.43 0.85 1.12 1.11 1.11 1.70 5.88
131 R.Vanhne 0.31 0.61 0.81 0.80 0.80 1.23 4.25
132 Rajmondal 0.33 0.66 0.87 0.85 0.86 1.31 4.55
133 Rawlbuk 0.43 0.85 1.12 1.11 1.11 1.70 5.88
134 Rengkashya 0.65 1.28 1.69 1.67 1.67 2.56 8.87
135 Rulkual 0.44 0.87 1.14 1.13 1.13 1.73 6.00
136 Sabualtlang 0.41 0.80 1.06 1.04 1.05 1.61 5.56
137 SAIBAWH 0.71 1.41 1.86 1.84 1.84 2.82 9.78
138 Saikah L 0.17 0.33 0.44 0.43 0.44 0.67 2.31
139 Saikah u 0.26 0.52 0.69 0.68 0.68 1.04 3.61
140 Saikhawthlir (Lawngtlai) 0.26 0.51 0.67 0.66 0.66 1.02 3.53
141 Saizawh E 0.46 0.91 1.20 1.18 1.19 1.82 6.30
142 Saizawh W 0.33 0.66 0.87 0.86 0.86 1.32 4.58
143 Sakeilui-I 0.28 0.55 0.72 0.71 0.71 1.09 3.78
144 Sakeilui-II 0.38 0.74 0.98 0.97 0.97 1.49 5.15
145 Samuksora 0.29 0.58 0.77 0.76 0.76 1.16 4.02
146 Sangau III 0.37 0.74 0.97 0.96 0.96 1.47 5.10
147 Sangau IV 0.53 1.06 1.40 1.38 1.38 2.12 7.33
~ 495 ~
__________________________________________________________________________________
148 Sangau-I 0.83 1.65 2.17 2.14 2.15 3.30 11.40

149 Sangau-II 0.76 1.50 1.98 1.95 1.95 2.99 10.36
150 Sentetfiang 0.26 0.51 0.67 0.66 0.66 1.02 3.51
151 Siachangkawn 0.53 1.06 1.40 1.38 1.38 2.12 7.32
152 Sihtlangpui 0.32 0.64 0.84 0.83 0.83 1.28 4.42
153 Silbanga 0.29 0.57 0.75 0.74 0.74 1.14 3.96
154 Sillosora 0.31 0.61 0.80 0.79 0.79 1.22 4.21
155 Silsury 0.42 0.83 1.09 1.08 1.08 1.65 5.73
156 Simeisury 0.34 0.67 0.88 0.87 0.87 1.34 4.62
157 Siminasora 0.34 0.68 0.90 0.89 0.89 1.36 4.71
158 Sumsilui 0.88 1.75 2.31 2.28 2.28 3.50 12.12
159 T Dumzau 0.39 0.78 1.02 1.01 1.01 1.55 5.38
160 Thaltlang 0.44 0.87 1.15 1.13 1.14 1.74 6.03
161 Thingkah 1.09 2.15 2.84 2.80 2.81 4.31 14.91
162 Tialdawngilung 0.29 0.57 0.76 0.74 0.75 1.15 3.96
163 TUICHAWNGTLANG 0.62 1.22 1.61 1.59 1.59 2.45 8.47
164 Tuidangtlang 0.32 0.63 0.83 0.82 0.82 1.26 4.37
165 Tuikhurlui 0.37 0.73 0.97 0.95 0.96 1.47 5.08
166 TUISENTLANG 0.36 0.71 0.93 0.92 0.92 1.42 4.90
167 Tuithumhnar 0.58 1.15 1.53 1.50 1.51 2.31 8.00
168 Tungosora 0.29 0.57 0.76 0.75 0.75 1.15 3.97
169 Udalthana-I 0.67 1.32 1.74 1.71 1.72 2.64 9.12
170 Udalthana-II 0.60 1.18 1.56 1.54 1.54 2.37 8.20
171 Ugalsury 0.50 1.00 1.32 1.30 1.30 2.00 6.91
172 Ugudasury N 0.35 0.70 0.92 0.91 0.91 1.40 4.83
173 Ugudasury South 0.59 1.17 1.54 1.52 1.52 2.34 8.08
174 Ulusury 0.41 0.82 1.08 1.06 1.06 1.63 5.65
175 Vaiseitlang-I 0.36 0.71 0.94 0.93 0.93 1.42 4.93
176 Vaiseitlang-II 0.35 0.70 0.92 0.91 0.91 1.40 4.84
177 Vartek 0.26 0.52 0.68 0.67 0.67 1.03 3.57
178 Vartekkai 0.31 0.61 0.80 0.79 0.79 1.22 4.21
179 VATHUAMPUI 0.83 1.64 2.17 2.14 2.14 3.29 11.38
180 Vawmbuk 0.64 1.26 1.67 1.64 1.64 2.53 8.74
181 Vawmbuk II 0.37 0.73 0.97 0.95 0.96 1.47 5.08
182 Veseikai 0.67 1.33 1.75 1.73 1.73 2.66 9.19
183 Zochachhuah 0.33 0.64 0.85 0.84 0.84 1.29 4.46
Total 100.00 197.87 261.37 257.78 257.99 396.23 1371.24
~ 496 ~
Annexures
__________________________________________________________________________________
Annexure 9.25
(Para 9.44)
Year-wise share of Village Councils under Aizawl district on rural local body
grants from 15th Finance Commission
(₹ in lakh)
Inter se
Sl.
No.
%
1 2 3 4 5 6 7 8 9
1 Aibawk 1.42 8.96 9.22 9.81 10.36 10.09 48.45
2 Chamring 0.63 3.97 4.08 4.34 4.59 4.46 21.44
3 Chawilung 0.97 6.10 6.28 6.68 7.05 6.87 32.99
4 Chhanchhuahna Khawpui 0.65 4.11 4.23 4.50 4.75 4.62 22.21
5 Darlawn Chhim veng 0.79 4.96 5.10 5.43 5.73 5.58 26.80
6 Darlawn Venghlun 2.43 15.29 15.73 16.74 17.67 17.21 82.64
7 Darlawn Vengpui 2.38 14.99 15.43 16.42 17.33 16.87 81.04
8 Darlawng 0.81 5.10 5.24 5.58 5.89 5.73 27.54
9 East Damdiai 0.75 4.72 4.85 5.16 5.45 5.31 25.49
10 East Phaileng 1.59 10.03 10.32 10.99 11.60 11.29 54.23
11 Falkawn 1.65 10.37 10.67 11.35 11.98 11.67 56.03
12 Hmuifang 0.59 3.69 3.80 4.05 4.27 4.16 19.97
13 Hmunnghak 0.59 3.70 3.81 4.05 4.28 4.17 20.01
14 Hualngohmun 0.54 3.41 3.51 3.74 3.95 3.84 18.46
15 Kelsih 0.82 5.16 5.31 5.65 5.97 5.81 27.91
16 Kepran 1.14 7.17 7.38 7.85 8.29 8.07 38.77
17 Khawpuar 0.81 5.12 5.26 5.60 5.91 5.76 27.65
18 Khawruhlian 2.27 14.26 14.67 15.61 16.48 16.05 77.07
19 Lamchhip 0.98 6.19 6.37 6.78 7.15 6.97 33.46
20 Lengpui 3.04 19.16 19.71 20.98 22.14 21.56 103.54
21 Lungleng I 0.92 5.81 5.97 6.36 6.71 6.53 31.38
22 Lungsei 0.74 4.68 4.81 5.12 5.40 5.26 25.28
23 Lungsum 1.04 6.53 6.72 7.15 7.55 7.35 35.30
24 Maubuang 0.74 4.63 4.77 5.07 5.35 5.21 25.03
25 Mauchar 1.58 9.95 10.23 10.89 11.50 11.19 53.76
26 Melriat 1.05 6.60 6.80 7.23 7.63 7.43 35.70
27 Muallungthu 1.35 8.49 8.74 9.30 9.82 9.56 45.91
28 Muthi 0.96 6.06 6.23 6.63 7.00 6.82 32.75
29 N. Lungleng 0.97 6.08 6.26 6.66 7.03 6.85 32.88
30 N.Khawdungsei 0.84 5.27 5.42 5.77 6.09 5.93 28.47
31 N.Serzawl 0.95 5.96 6.13 6.52 6.89 6.71 32.21
~ 497 ~
__________________________________________________________________________________
32 N.Tinghmun 1.28 8.03 8.27 8.80 9.28 9.04 43.42

33 New Vervek 0.97 6.14 6.31 6.72 7.09 6.91 33.17
34 Palsang 0.80 5.02 5.17 5.50 5.80 5.65 27.14
35 Pehlawn 1.03 6.46 6.64 7.07 7.46 7.26 34.89
36 Phulmawi 0.64 4.05 4.17 4.44 4.68 4.56 21.90
37 Phulpui 1.28 8.06 8.29 8.82 9.31 9.07 43.54
38 Ratu 2.42 15.21 15.65 16.65 17.57 17.11 82.19
39 Sailam 0.94 5.94 6.11 6.50 6.86 6.68 32.09
40 Sailutar 0.88 5.56 5.72 6.08 6.42 6.25 30.03
41 Sairang 3.20 20.15 20.74 22.07 23.29 22.68 108.92
42 Sairang Dinthar 1.73 10.88 11.20 11.92 12.58 12.25 58.82
43 Sairang Sihhmui 1.03 6.51 6.70 7.13 7.52 7.32 35.18
44 Sakawrdai 4.09 25.77 26.52 28.22 29.79 29.00 139.29
45 Samlukhai 1.36 8.57 8.82 9.38 9.90 9.64 46.32
46 Samtlang 1.51 9.50 9.78 10.40 10.98 10.69 51.36
47 Sateek 0.99 6.25 6.43 6.84 7.22 7.03 33.78
48 Sawleng 1.85 11.66 11.99 12.76 13.47 13.12 63.00
49 Seling 2.35 14.77 15.20 16.18 17.07 16.63 79.85
50 Sesawng I 1.72 10.82 11.13 11.84 12.50 12.17 58.47
51 Sesawng II 2.02 12.72 13.09 13.93 14.70 14.31 68.75
52 Sesawng III 1.01 6.34 6.52 6.94 7.32 7.13 34.25
53 Sialsuk 1.82 11.48 11.81 12.57 13.27 12.92 62.06
54 Sihphir 6.23 39.22 40.36 42.94 45.33 44.14 211.99
55 Sihphir Venghlun 3.79 23.87 24.56 26.13 27.59 26.86 129.01
56 Sumsuih 0.89 5.63 5.79 6.16 6.50 6.33 30.41
57 Sunhluchhip 1.08 6.80 6.99 7.44 7.86 7.65 36.74
58 Tachhip 1.19 7.49 7.71 8.20 8.66 8.43 40.48
59 Thiak 0.90 5.69 5.86 6.23 6.58 6.41 30.77
60 Thingsat 0.72 4.56 4.70 5.00 5.27 5.14 24.66
61 Thingsul Tlangnuam 1.46 9.18 9.44 10.05 10.61 10.33 49.60
62 Thingsulthliah - I 2.76 17.39 17.90 19.05 20.10 19.57 94.01
63 Thingsulthliah - II 1.61 10.13 10.42 11.09 11.71 11.40 54.75
64 Tlungvel 2.49 15.69 16.14 17.18 18.13 17.66 84.81
65 Tuirial 1.10 6.94 7.14 7.59 8.02 7.81 37.49
66 Tuirial Airfield 0.96 6.05 6.23 6.63 7.00 6.81 32.72
67 Vaitin 1.57 9.87 10.15 10.81 11.41 11.11 53.34
68 Zohmun 1.44 9.07 9.33 9.93 10.48 10.20 49.00
69 Zokhawthiang 0.88 5.55 5.71 6.08 6.42 6.25 30.01
Total 100.00 629.50 647.75 689.29 727.59 708.44 3402.58
~ 498 ~
Annexures
__________________________________________________________________________________
Annexure 9.26A
(Para 9.44)
Year-wise share of Village Councils under Lunglei district on rural local body
grants from 15th Finance Commission for the year 2021-22 and 2022-23
(₹ in lakh)
Sl.
Village Council Inter se share in % 2021-22 2022-23 Total
No.
1 2 3 4 5 6
1 Belpei 0.92 10.09 10.39 20.48
2 Belthei 0.63 6.92 7.13 14.05
3 Bolia 0.63 6.92 7.13 14.05
4 Bualte 0.34 3.72 3.83 7.55
5 Buarpui 0.84 9.24 9.51 18.75
6 Buknuam 0.54 5.89 6.06 11.95
7 Bunghmun West 0.85 9.34 9.61 18.95
8 Bungtlang West 0.34 3.70 3.80 7.50
9 Changpui 0.42 4.61 4.74 9.35
10 Chawilung S 0.58 6.37 6.56 12.93
11 Chawngte L 0.85 9.32 9.59 18.91
12 Chengkawllui 0.79 8.70 8.95 17.65
13 Chengpui 0.28 3.04 3.13 6.17
14 Chithar 0.27 2.97 3.06 6.03
15 College Veng 0.86 9.41 9.68 19.09
16 Dawn 0.44 4.83 4.97 9.79
17 Dengsur 0.55 5.99 6.17 12.16
18 Diblibagh 1.30 14.24 14.65 28.88
19 Electric Veng 2.80 30.73 31.62 62.34
20 Farm Veng 1.32 14.46 14.88 29.34
21 Haulawng 1.48 16.25 16.72 32.98
22 Hauruang 0.92 10.10 10.40 20.50
23 Hlumte 0.40 4.36 4.49 8.85
24 Hmundo 0.39 4.25 4.38 8.63
25 Hmuntlang 0.28 3.12 3.21 6.32
26 Hrangchalkawn 0.69 7.53 7.75 15.29
27 Kalapani 0.86 9.47 9.74 19.21
28 Kauchhuah 0.68 7.46 7.68 15.14
29 Kawlhawk 0.28 3.07 3.16 6.22
30 Khawlek S 0.28 3.08 3.17 6.24
31 Khawmawi 0.99 10.86 11.18 22.04
32 Khojoysury 0.56 6.17 6.35 12.53
~ 499 ~
__________________________________________________________________________________
33 Laisawral 0.46 5.07 5.22 10.29

34 Lalnutui 0.49 5.37 5.52 10.89
35 Luangmual 1.39 15.21 15.66 30.87
36 Lungchem 0.42 4.62 4.76 9.38
37 Lungdai South 0.34 3.74 3.85 7.58
38 Lunglawn 2.09 22.86 23.52 46.39
39 Lunglei Bazar Veng 2.95 32.38 33.31 65.69
40 Lunglei Chanmari 3.80 41.67 42.88 84.55
41 Lungpuizawl 0.59 6.44 6.63 13.07
42 Lungrang S 1.18 12.88 13.25 26.14
43 Lungsen I 0.88 9.68 9.97 19.65
44 Lungsen II 1.17 12.80 13.17 25.97
45 Malsury 0.82 9.04 9.30 18.34
46 Mamte 0.57 6.26 6.44 12.70
47 Marpara S 2.18 23.89 24.58 48.47
48 Mausen 0.33 3.61 3.72 7.33
49 Mautlang (Lungsen) 0.54 5.87 6.04 11.91
50 Mauzam 0.64 6.97 7.18 14.15
51 Mualcheng S 0.65 7.12 7.33 14.45
52 Mualthuam N 0.96 10.57 10.88 21.45
53 Mualthuam S 0.58 6.41 6.60 13.01
54 New Sachan 0.83 9.11 9.37 18.49
55 Nunsury I 0.79 8.67 8.92 17.60
56 Nunsury II 0.67 7.35 7.56 14.90
57 Phairuangkai 1.07 11.77 12.11 23.88
58 Puankhai 0.88 9.67 9.95 19.62
59 Pukpui 1.22 13.32 13.71 27.03
60 Putlungasih 1.04 11.44 11.77 23.21
61 Rahsi Veng 2.70 29.56 30.41 59.97
62 Ralvawng 0.55 6.03 6.20 12.23
63 Ramlaitui 0.46 5.09 5.24 10.33
64 Ramthar Veng 3.22 35.32 36.34 71.66
65 Rangte 0.78 8.55 8.80 17.35
66 Rotlang W 0.61 6.73 6.92 13.65
67 Rualalung 0.59 6.49 6.68 13.17
68 Runtung 0.38 4.14 4.26 8.40
69 Sachan 0.58 6.33 6.52 12.85
70 Sailen 0.40 4.38 4.51 8.90
71 Sairep 0.41 4.47 4.60 9.08
~ 500 ~
Annexures
__________________________________________________________________________________
72 Salem 1.03 11.31 11.64 22.95

73 Sazaikawn 0.54 5.86 6.03 11.90
74 Sekhum 0.34 3.77 3.88 7.66
75 Serkawn 1.49 16.36 16.83 33.19
76 Serte 0.40 4.37 4.50 8.87
77 Sertlangpui 0.42 4.62 4.76 9.38
78 Sesawm 0.46 5.08 5.23 10.31
79 Sethlun 0.69 7.55 7.77 15.33
80 Silkur 0.49 5.43 5.58 11.01
81 Sumasumi 0.54 5.96 6.13 12.09
82 Tablabagh 1.02 11.21 11.53 22.74
83 Tawipui N - I 0.55 6.04 6.22 12.26
84 Tawipui N – II 0.65 7.16 7.37 14.53
85 Tawipui S 0.95 10.37 10.67 21.03
86 Thaizawl 0.30 3.31 3.40 6.71
87 Thangpui 0.38 4.12 4.24 8.36
88 Thangte / Thangpui 0.33 3.67 3.77 7.44
89 Thehlep 0.26 2.82 2.90 5.72
90 Theiriat 1.27 13.95 14.36 28.31
91 Thenhlum 0.86 9.44 9.72 19.16
92 Thingfal 1.00 10.95 11.26 22.21
93 Thlengang 0.36 3.94 4.05 7.99
94 Thuampui 0.40 4.42 4.55 8.98
95 Tiperegahat 1.01 11.13 11.45 22.57
96 Tlabung 2.71 29.73 30.60 60.33
97 Tualthu 0.57 6.27 6.46 12.73
98 Tuichawng 2.26 24.80 25.52 50.31
99 Tuikawi 0.78 8.52 8.77 17.29
100 Tuisenchhuah 0.44 4.81 4.95 9.77
101 Upper Lungrang S 0.49 5.36 5.52 10.88
102 Vaisam 0.38 4.19 4.32 8.51
103 Vanhne 0.60 6.59 6.79 13.38
104 Venghlun 1.19 13.02 13.40 26.42
105 Venglai 2.29 25.13 25.86 51.00
106 Zawlpui (Lungsen) 1.21 13.23 13.61 26.85
107 Zehtet 0.75 8.26 8.50 16.76
108 Zobawk N 1.09 11.91 12.26 24.17
109 Zobawk S 1.29 14.14 14.55 28.70
110 Zodin 1.58 17.33 17.83 35.16
111 Zohnuai 1.03 11.26 11.58 22.84
112 Zotlang 1.53 16.73 17.22 33.95
113 Zotuitlang 0.45 4.89 5.03 9.92
100.00 1096.16 1127.93 2224.10
~ 501 ~
__________________________________________________________________________________
Annexure 9.26 B
(Para 9.44)
Year-wise share of Village Councils under Lunglei district on rural local body
grants from 15th Finance Commission for the year 2023-24 up to 2025-26
(₹ in lakh)
Sl. Inter se share
Village Council 2023-24 2024-25 2025-26 Total
No. in %
1 2 3 4 5 6 7
1 Belpei 1.51 12.80 13.51 13.15 39.46
2 Belthei 0.99 8.38 8.85 8.61 25.84
3 Bolia 0.99 8.38 8.85 8.61 25.84
4 Bualte 0.53 4.46 4.71 4.58 13.75
5 Buarpui 1.50 12.67 13.38 13.03 39.08
6 Buknuam 0.80 6.76 7.14 6.95 20.84
7 Bunghmun West 1.42 12.00 12.67 12.34 37.01
8 Bungtlang West 0.48 4.05 4.27 4.16 12.48
9 Changpui 0.64 5.42 5.72 5.57 16.71
10 Chawilung S 0.88 7.41 7.83 7.62 22.86
11 Chawngte L 1.44 12.14 12.82 12.48 37.45
12 Chengkawllui 1.28 10.80 11.40 11.10 33.29
13 Chengpui 0.37 3.11 3.28 3.19 9.57
14 Chithar 0.38 3.22 3.40 3.31 9.94
15 Dawn 0.67 5.68 5.99 5.84 17.51
16 Dengsur 0.86 7.29 7.69 7.49 22.48
17 Diblibagh 2.21 18.65 19.69 19.17 57.51
18 Haulawng 2.74 23.18 24.47 23.82 71.47
19 Hlumte 0.55 4.62 4.88 4.75 14.24
20 Hmundo 0.51 4.30 4.54 4.42 13.26
21 Hmuntlang 0.37 3.14 3.31 3.22 9.67
22 Kalapani 1.37 11.56 12.21 11.88 35.65
23 Kauchhuah 1.05 8.87 9.37 9.12 27.36
24 Kawlhawk 0.36 3.07 3.24 3.15 9.46
25 Khawlek S 0.37 3.13 3.30 3.22 9.65
26 Khawmawi 1.66 14.07 14.85 14.46 43.37
27 Khojoysury 0.86 7.30 7.71 7.51 22.52
28 Laisawral 0.71 6.00 6.33 6.16 18.49
29 Lalnutui 0.70 5.96 6.29 6.12 18.37
~ 502 ~
Annexures
__________________________________________________________________________________
30 Lungchem 0.63 5.37 5.66 5.52 16.55

31 Lungdai South 0.47 4.01 4.23 4.12 12.36
32 Lungrang S 2.01 16.99 17.94 17.46 52.39
33 Lungsen I 1.47 12.46 13.16 12.81 38.43
34 Lungsen II 1.98 16.71 17.64 17.17 51.52
35 Malsury 1.32 11.18 11.80 11.49 34.47
36 Mamte 0.89 7.54 7.96 7.75 23.26
37 Marpara S 3.83 32.42 34.22 33.32 99.97
38 Mausen 0.49 4.14 4.37 4.26 12.77
39 Mautlang 0.77 6.50 6.86 6.68 20.04
(Lungsen)
40 Mauzam 0.98 8.31 8.77 8.54 25.61
41 Mualcheng S 1.06 8.97 9.46 9.21 27.64
42 Mualthuam N 1.66 14.01 14.79 14.40 43.21
43 Mualthuam S 0.90 7.59 8.01 7.80 23.40
44 New Sachan 1.34 11.35 11.98 11.66 34.99
45 Nunsury I 1.28 10.81 11.41 11.11 33.32
46 Nunsury II 1.04 8.83 9.32 9.07 27.22
47 Phairuangkai 1.84 15.53 16.39 15.96 47.88
48 Puankhai 1.44 12.18 12.86 12.52 37.56
49 Putlungasih 1.76 14.92 15.75 15.34 46.02
50 Ralvawng 0.82 6.95 7.34 7.15 21.44
51 Ramlaitui 0.74 6.24 6.59 6.41 19.24
52 Rangte 1.25 10.54 11.13 10.83 32.50
53 Rotlang W 0.97 8.17 8.62 8.40 25.19
54 Rualalung 0.89 7.51 7.93 7.72 23.16
55 Runtung 0.52 4.43 4.68 4.55 13.66
56 Sachan 0.89 7.50 7.92 7.71 23.14
57 Sailen 0.53 4.49 4.73 4.61 13.83
58 Sairep 0.57 4.85 5.12 4.98 14.95
59 Sekhum 0.51 4.30 4.54 4.42 13.25
60 Serte 0.60 5.11 5.39 5.25 15.76
61 Sertlangpui 0.65 5.53 5.84 5.69 17.06
62 Sesawm 0.69 5.85 6.17 6.01 18.03
63 Silkur 0.71 6.02 6.35 6.18 18.55
64 Sumasumi 0.82 6.93 7.32 7.12 21.37
65 Tablabagh 1.69 14.32 15.11 14.71 44.14
66 Tawipui N - I 0.88 7.45 7.87 7.66 22.98
~ 503 ~
__________________________________________________________________________________
67 Tawipui N – II 1.04 8.80 9.29 9.05 27.15

68 Tawipui S 1.63 13.80 14.57 14.18 42.55
69 Thaizawl 0.46 3.88 4.09 3.99 11.96
70 Thangpui 0.49 4.19 4.42 4.30 12.91
71 Thangte 0.45 3.77 3.98 3.87 11.62
72 Thehlep 0.32 2.70 2.85 2.77 8.32
73 Thenhlum 1.45 12.29 12.98 12.64 37.91
74 Thingfal 1.71 14.45 15.25 14.85 44.54
75 Thlengang 0.50 4.22 4.45 4.33 13.00
76 Thuampui 0.63 5.35 5.65 5.50 16.51
77 Tiperegahat 1.70 14.36 15.16 14.76 44.29
78 Tlabung 4.79 40.52 42.77 41.65 124.94
79 Tualthu 0.91 7.66 8.08 7.87 23.61
80 Tuichawng 3.98 33.67 35.54 34.61 103.82
81 Tuikawi 1.25 10.60 11.19 10.89 32.67
82 Tuisenchhuah 0.65 5.47 5.77 5.62 16.86
83 Upper Lungrang S 0.72 6.12 6.46 6.29 18.86
84 Vaisam 0.57 4.81 5.08 4.95 14.84
85 Vanhne 0.98 8.32 8.79 8.55 25.66
86 Zawlpui (Lungsen) 2.04 17.27 18.23 17.75 53.24
87 Zehtet 1.17 9.89 10.44 10.17 30.50
88 Zodin 2.75 23.25 24.54 23.90 71.69
89 Zotuitlang 0.70 5.93 6.26 6.09 18.28
100.00 845.75 892.74 869.25 2607.74
~ 504 ~
Annexures
__________________________________________________________________________________
Annexure 9.27
(Para 9.44)
Year-wise share of Village Councils under Kolasib district on rural local body
(₹ in lakh)
Inter se
Sl.
No.
%
1 2 3 4 5 6 7 8 9
1 Bairabi N 3.43 21.75 22.38 23.94 25.27 24.60 117.93
2 Bairabi S 1.92 12.15 12.51 13.38 14.12 13.75 65.90
3 Bilkhawthlir N 1.91 12.09 12.44 13.31 14.04 13.68 65.56
4 Bilkhawthlir S 2.38 15.09 15.53 16.61 17.53 17.07 81.83
5 Bualpui North 1.62 10.26 10.56 11.30 11.92 11.61 55.65
6 Buhchangphai 1.80 11.40 11.73 12.55 13.24 12.90 61.82
7 Bukpui 1.09 6.90 7.10 7.59 8.02 7.80 37.41
8 Bukvanne 0.88 5.58 5.74 6.14 6.48 6.31 30.23
9 Hortoki 2.58 16.35 16.83 18.00 19.00 18.50 88.68
10 Kawnpui – I 2.17 13.76 14.16 15.15 15.99 15.57 74.62
11 Kawnpui – II 1.61 10.18 10.48 11.20 11.83 11.52 55.21
12 Kawnpui III 1.36 8.61 8.86 9.48 10.01 9.74 46.70
13 Kawnpui Venglai 2.22 14.06 14.47 15.48 16.34 15.91 76.26
14 Khamrang 0.88 5.58 5.74 6.14 6.48 6.31 30.23
15 Kolasib College Veng 1.37 8.70 8.95 9.58 10.11 9.84 47.18
16 Kolasib Diakkawn 4.43 28.05 28.86 30.87 32.58 31.73 152.09
17 Kolasib Electrict 1.16 7.36 7.57 8.10 8.55 8.33 39.92
18 Kolasib Gosen 0.85 5.39 5.55 5.93 6.26 6.10 29.22
19 Kolasib Hmarveng 2.69 17.05 17.55 18.77 19.81 19.29 92.46
20 Kolasib Khuangpuilam 1.59 10.10 10.39 11.11 11.73 11.42 54.75
21 Kolasib New Diakkawn 1.77 11.19 11.52 12.32 13.00 12.66 60.70
22 Kolasib Project Veng 1.22 7.73 7.96 8.51 8.98 8.74 41.92
23 Kolasib Rengtekawn 2.12 13.42 13.81 14.77 15.59 15.18 72.78
24 Kolasib Saidan 1.09 6.88 7.08 7.57 7.99 7.78 37.29
25 Kolasib Tuitha Veng 1.44 9.09 9.36 10.01 10.56 10.29 49.31
26 Kolasib Tumpui 1.77 11.19 11.51 12.32 13.00 12.66 60.68
27 Kolasib Venglai 3.08 19.50 20.06 21.46 22.65 22.05 105.71
28 Kolasib Venglai East 1.47 9.31 9.58 10.24 10.81 10.53 50.47
29 Kolasib Vengthar 2.59 16.42 16.89 18.07 19.07 18.57 89.02
30 Lungdai 1.93 12.21 12.57 13.44 14.19 13.81 66.22
~ 505 ~
__________________________________________________________________________________
31 Lungmuat 0.89 5.64 5.80 6.21 6.55 6.38 30.58

32 Meidum 1.45 9.19 9.46 10.11 10.68 10.40 49.83
33 Mualkhang 4.66 29.49 30.35 32.46 34.26 33.36 159.93
34 N.Chawnpui 1.10 6.98 7.18 7.68 8.11 7.89 37.84
35 N.Chhimluang 1.00 6.31 6.49 6.94 7.33 7.13 34.20
36 N.Hlimen 1.54 9.78 10.06 10.76 11.36 11.06 53.02
37 N.Thinglian 1.43 9.03 9.29 9.94 10.49 10.21 48.95
38 New Builum 0.89 5.63 5.79 6.20 6.54 6.37 30.53
39 Nisapui 0.97 6.16 6.33 6.77 7.15 6.96 33.38
40 North Chaltlang - I 0.96 6.10 6.28 6.71 7.09 6.90 33.08
41 North Chaltlang - II 0.78 4.93 5.07 5.42 5.72 5.57 26.72
42 Pangbalkawn 1.78 11.28 11.61 12.42 13.11 12.76 61.17
43 Phainuam 1.57 9.97 10.26 10.97 11.58 11.28 54.07
44 Phaisen 1.08 6.85 7.04 7.53 7.95 7.74 37.12
45 Saihapui K 1.26 7.95 8.18 8.75 9.24 8.99 43.12
46 Saihapui V 0.88 5.58 5.74 6.14 6.48 6.31 30.24
47 Saiphai 2.34 14.82 15.25 16.31 17.21 16.76 80.35
48 Saipum 2.42 15.34 15.78 16.88 17.82 17.35 83.17
49 Serkhan 0.93 5.89 6.06 6.48 6.84 6.66 31.91
50 Thingdawl 2.59 16.41 16.89 18.06 19.07 18.56 88.99
51 Thingthelh 0.95 6.02 6.19 6.62 6.99 6.81 32.64
52 Vairangte – I 3.04 19.23 19.78 21.16 22.34 21.75 104.26
53 Vairengte – II 3.81 24.12 24.82 26.55 28.02 27.28 130.79
Vairengte - IV State 1.59 10.05 10.34 11.06 11.68 11.37 54.51
54
Veng
55 Vairengte III IOC Veng 2.15 13.59 13.98 14.96 15.79 15.37 73.69
56 Zanlawn 1.50 9.50 9.78 10.46 11.04 10.75 51.54
100.00 633.19 651.54 696.87 735.58 716.22 3433.40
~ 506 ~
Annexures
__________________________________________________________________________________
Annexure 9.28
(Para 9.44)
Year-wise share of Village Councils under Champhai district on rural local

body grants from 15th Finance Commission
(₹ in lakh)
Inter se
Sl.
No.
%
1 2 3 4 5 6 7 8 9
1 Bethel 3.82 22.16 22.80 24.33 25.68 25.00 119.97
2 Buang 1.05 6.12 6.30 6.72 7.09 6.90 33.12
3 Bulfekzawl 0.79 4.57 4.71 5.02 5.30 5.16 24.76
4 Bungzung 1.47 8.54 8.78 9.37 9.89 9.63 46.22
5 Champhai Jail Veng 0.75 4.36 4.49 4.79 5.05 4.92 23.61
6 Champhai Vengthar 1.92 11.14 11.46 12.23 12.91 12.57 60.31
7 Chawngtui E 0.82 4.74 4.88 5.21 5.50 5.35 25.67
8 Chhungte 0.64 3.71 3.81 4.07 4.29 4.18 20.06
9 Dilkawn 1.33 7.70 7.92 8.45 8.92 8.69 41.69
10 Dinthar 1.10 6.39 6.57 7.01 7.40 7.21 34.58
11 Dungtlang 1.29 7.49 7.71 8.23 8.68 8.45 40.57
12 Electric Veng 2.45 14.23 14.64 15.62 16.48 16.05 77.02
13 Farkawn 3.37 19.55 20.12 21.46 22.66 22.06 105.85
14 Hmunhmeltha 1.71 9.95 10.24 10.92 11.53 11.23 53.87
15 Hnahlan 3.15 18.26 18.79 20.05 21.16 20.60 98.86
16 Hruaikawn 1.09 6.32 6.50 6.93 7.32 7.13 34.19
17 Kahrawt 2.64 15.30 15.74 16.79 17.73 17.26 82.81
18 Kanan 2.75 15.98 16.44 17.54 18.51 18.03 86.49
19 Kelkang 1.35 7.83 8.06 8.60 9.07 8.83 42.39
20 Khankawn 0.80 4.62 4.75 5.07 5.35 5.21 25.02
21 Khawbung S 1.97 11.45 11.78 12.57 13.27 12.92 62.00
22 Khuangleng 2.11 12.22 12.58 13.42 14.16 13.79 66.18
23 Khuangphah 1.28 7.43 7.65 8.16 8.61 8.39 40.25
24 Khuangthing 1.66 9.66 9.94 10.61 11.20 10.90 52.32
25 Leisenzo 0.96 5.59 5.75 6.14 6.48 6.31 30.26
26 Leithum 0.90 5.20 5.35 5.71 6.03 5.87 28.15
27 Lianpui 0.97 5.62 5.78 6.17 6.51 6.34 30.42
28 Lungphunlian 0.76 4.41 4.54 4.84 5.11 4.98 23.89
29 Melbuk 1.04 6.01 6.18 6.60 6.96 6.78 32.53
30 Mualkawi 0.95 5.51 5.67 6.05 6.39 6.22 29.84
~ 507 ~
__________________________________________________________________________________
31 Murlen 1.14 6.61 6.80 7.26 7.66 7.46 35.80

32 N. Khawbung 1.30 7.52 7.74 8.26 8.72 8.49 40.74
33 N.Diltlang 1.01 5.88 6.05 6.45 6.81 6.63 31.81
34 New Champhai 1.21 7.03 7.24 7.72 8.15 7.93 38.07
35 New Hruaikawn 0.70 4.04 4.16 4.44 4.68 4.56 21.89
36 Ngur 2.19 12.73 13.10 13.98 14.76 14.37 68.94
37 Ruantlang 1.45 8.40 8.65 9.23 9.74 9.48 45.49
38 Ruantlang Mual 0.83 4.83 4.97 5.30 5.60 5.45 26.15
Veng
39 Samthang 0.88 5.10 5.25 5.60 5.91 5.75 27.61
40 Sazep 0.88 5.10 5.25 5.60 5.91 5.75 27.61
41 Selam 1.71 9.92 10.21 10.89 11.50 11.19 53.71
42 Sesih 1.43 8.31 8.55 9.13 9.63 9.38 45.01
43 Thekpui 0.85 4.96 5.10 5.44 5.74 5.59 26.83
44 Thekte 1.15 6.65 6.85 7.30 7.71 7.51 36.02
45 Tlangsam 2.20 12.75 13.12 14.00 14.77 14.39 69.02
46 Tualcheng 1.26 7.31 7.53 8.03 8.48 8.25 39.60
47 Tuipui 0.91 5.26 5.41 5.77 6.10 5.93 28.48
48 Vaikhawtlang 1.62 9.40 9.67 10.32 10.90 10.61 50.90
49 Vangchhia 1.31 7.60 7.82 8.35 8.81 8.58 41.15
50 Vanzau 0.94 5.44 5.60 5.98 6.31 6.14 29.47
51 Vapar 1.36 7.92 8.15 8.69 9.18 8.94 42.87
52 Vaphai 2.52 14.63 15.06 16.07 16.96 16.51 79.23
53 Venglai 2.78 16.13 16.60 17.71 18.70 18.20 87.35
54 Vengsang 3.17 18.39 18.93 20.19 21.31 20.75 99.58
55 Vengthlang 5.77 33.52 34.49 36.80 38.84 37.82 181.46
56 Vengthlang North 1.43 8.30 8.54 9.12 9.62 9.37 44.95
57 Zawlsei 0.80 4.63 4.77 5.08 5.37 5.23 25.07
58 Zawngtetui 0.83 4.80 4.94 5.27 5.56 5.41 25.97
59 Zion Veng 1.81 10.50 10.81 11.53 12.17 11.85 56.87
60 Zokhawthar 3.29 19.09 19.64 20.95 22.12 21.53 103.33
61 Zote 1.66 9.66 9.94 10.61 11.20 10.90 52.32
62 Zotlang East 2.74 15.88 16.34 17.44 18.40 17.92 85.98
100.00 580.40 597.22 637.16 672.56 654.86 3142.19
~ 508 ~
Annexures
__________________________________________________________________________________
Annexure 9.29
(Para 9.44)
Year-wise share of Village Councils under Mamit district on rural local body
(₹ in lakh)
Sl. Inter se
N Village Council share in 2021-22 2022-23 2023-24 2024-25 2025-26 Total
o. %
1 2 3 4 5 6 7 8 9
1 Ailawng 0.65 5.33 5.49 5.81 6.14 5.98 28.75

2 Andermanik (Mamit) 1.44 11.76 12.10 12.82 13.54 13.18 63.40
3 Bawlte 0.49 4.00 4.12 4.36 4.60 4.48 21.56
4 Bawngthah 0.54 4.40 4.53 4.80 5.07 4.94 23.74
5 Bawngva 0.99 8.07 8.30 8.80 9.28 9.04 43.49
6 Belkhai 0.84 6.87 7.07 7.49 7.91 7.70 37.04
7 Borai 1.59 13.01 13.39 14.19 14.98 14.58 70.15
8 Bunghmun West (Zawlnuam) 1.33 10.92 11.23 11.90 12.57 12.24 58.86
9 Bungthuam 0.84 6.88 7.08 7.50 7.92 7.71 37.08
10 Chhippui - I 0.74 6.07 6.25 6.62 6.99 6.81 32.74
11 Chhippui - II 0.39 3.18 3.27 3.46 3.66 3.56 17.13
12 Chuhvel 0.54 4.45 4.58 4.86 5.13 4.99 24.02
13 Chungtlang 0.57 4.71 4.84 5.13 5.42 5.27 25.37
14 Damdiai 1.57 12.85 13.22 14.01 14.79 14.40 69.25
15 Damparengpui 2.56 20.96 21.57 22.86 24.13 23.49 113.00
16 Dampui 0.85 6.94 7.15 7.57 7.99 7.78 37.44
17 Dapchhuah 1.30 10.62 10.93 11.58 12.23 11.91 57.27
18 Darlak 1.16 9.51 9.78 10.37 10.95 10.66 51.27
19 Darlung 1.34 10.97 11.29 11.97 12.63 12.30 59.16
20 Hmunpui 1.25 10.22 10.52 11.15 11.76 11.46 55.10
21 Hnahva 1.63 13.34 13.73 14.55 15.36 14.96 71.94
22 Hreichuk 0.40 3.27 3.36 3.56 3.76 3.66 17.61
23 Hriphaw 1.05 8.56 8.81 9.33 9.85 9.59 46.15
24 Hruaitluang 0.75 6.12 6.30 6.68 7.05 6.86 33.01
25 Hruiduk 1.30 10.69 11.00 11.65 12.30 11.98 57.61
26 Kanghmun 1.07 8.72 8.98 9.51 10.04 9.78 47.04
27 Kanhmun 1.53 12.57 12.93 13.71 14.47 14.09 67.76
28 Kawrtethawveng 1.79 14.64 15.07 15.97 16.85 16.41 78.94
29 Kawrthah North 1.30 10.69 11.00 11.65 12.30 11.98 57.61
30 Kawrthah South 1.57 12.87 13.24 14.03 14.81 14.42 69.38
~ 509 ~
__________________________________________________________________________________
31 Khantlang 0.93 7.61 7.83 8.30 8.76 8.53 41.02

32 Khawhnai 0.77 6.29 6.47 6.86 7.24 7.05 33.90
33 Khawrihnim 0.81 6.62 6.81 7.22 7.62 7.42 35.70
34 Kolalian 1.32 10.78 11.09 11.76 12.41 12.08 58.12
35 Lallen 0.96 7.89 8.11 8.60 9.08 8.84 42.52
36 Lengte 0.69 5.64 5.81 6.15 6.50 6.33 30.43
37 Lianbuang (Bega Bekya) 0.66 5.42 5.58 5.91 6.24 6.08 29.23
38 Luangpawl 1.23 10.03 10.32 10.94 11.55 11.24 54.09
39 Luimawi 0.65 5.36 5.51 5.84 6.17 6.00 28.88
40 Lungphun 0.47 3.86 3.97 4.21 4.44 4.32 20.79
41 Mamit Bazar veng 0.92 7.56 7.78 8.25 8.71 8.48 40.77
42 Mamit Chhim veng 1.70 13.91 14.31 15.16 16.01 15.58 74.97
43 Mamit Hmar veng 1.95 15.96 16.43 17.41 18.37 17.89 86.06
44 Mamit Venghlun 1.21 9.88 10.16 10.77 11.37 11.07 53.24
45 Marpara Mizo Veng 0.58 4.78 4.91 5.21 5.50 5.35 25.75
46 Marpara North 2.08 17.04 17.54 18.58 19.62 19.10 91.88
47 Mualthuam 1.52 12.41 12.77 13.53 14.28 13.91 66.90
48 Nalzawl 0.98 8.00 8.23 8.72 9.20 8.96 43.11
49 New Eden 0.83 6.77 6.97 7.38 7.79 7.59 36.51
50 New Mamit 0.94 7.67 7.90 8.37 8.83 8.60 41.37
51 New West Phaileng 1.94 15.89 16.35 17.33 18.29 17.81 85.68
52 Nghalchawm 0.60 4.92 5.07 5.37 5.67 5.52 26.55
53 North Sabual 0.64 5.21 5.36 5.68 5.99 5.84 28.08
54 Parvatui 0.64 5.23 5.38 5.70 6.02 5.86 28.18
55 Phaizau 0.53 4.35 4.48 4.74 5.01 4.88 23.46
56 Phuldungsei 2.31 18.96 19.51 20.67 21.82 21.25 102.20
57 Phuldungsei Zampui 1.10 9.02 9.29 9.84 10.39 10.11 48.65
58 Phulpui West 1.09 8.96 9.22 9.77 10.31 10.04 48.31
59 Pukzing 0.69 5.66 5.83 6.17 6.52 6.35 30.53
60 Pukzing Vengthar 0.79 6.50 6.69 7.09 7.48 7.28 35.04
61 Rajiv Nagar - I 2.67 21.84 22.47 23.81 25.13 24.47 117.73
62 Rajiv Nagar – II 1.65 13.51 13.91 14.74 15.55 15.15 72.86
63 Rawpuichhip 1.40 11.44 11.77 12.47 13.17 12.82 61.67
64 Reiek 1.42 11.60 11.94 12.65 13.35 13.00 62.55
65 Rengdil 1.68 13.80 14.20 15.04 15.88 15.46 74.38
66 Rulpuihlim 0.44 3.57 3.67 3.89 4.10 4.00 19.23
67 Saikhawthlir (Zawlnuam) 0.79 6.50 6.69 7.09 7.48 7.28 35.03
68 Saithah 0.44 3.61 3.72 3.94 4.16 4.05 19.49
69 Serhmun West 0.52 4.22 4.34 4.60 4.85 4.73 22.74
~ 510 ~
Annexures
__________________________________________________________________________________
70 Sihthiang 1.17 9.57 9.85 10.44 11.02 10.73 51.62

71 Silsury E 2.09 17.10 17.60 18.65 19.69 19.17 92.21
72 Silsury W 2.17 17.73 18.25 19.34 20.41 19.87 95.60
73 South Sabual 0.69 5.66 5.82 6.17 6.51 6.34 30.50
74 Suarhliap 0.80 6.58 6.77 7.17 7.57 7.37 35.45
75 Thaidawr 1.16 9.50 9.78 10.36 10.94 10.65 51.23
76 Thinghlun 0.88 7.24 7.45 7.90 8.33 8.11 39.03
77 Tuahzawl 0.56 4.55 4.68 4.96 5.23 5.10 24.52
78 Tuidam 1.59 13.01 13.39 14.19 14.98 14.58 70.14
79 Tuipuibari – I 2.07 16.92 17.41 18.45 19.48 18.96 91.23
80 Tuirum 0.87 7.13 7.34 7.78 8.21 7.99 38.44
81 Tumpanglui 0.76 6.24 6.42 6.81 7.19 7.00 33.66
82 Vawngawnzo 0.56 4.62 4.75 5.04 5.32 5.18 24.90
83 West Lungdar 0.91 7.47 7.68 8.14 8.60 8.37 40.26
84 West Phaileng 1.89 15.46 15.91 16.86 17.79 17.32 83.34
85 West Serzawl 0.55 4.47 4.60 4.88 5.15 5.02 24.12
86 Zamuang 1.04 8.49 8.73 9.25 9.77 9.51 45.75
87 Zawlnuam thuampui 0.86 7.04 7.24 7.67 8.10 7.89 37.94
88 Zawlnuam vengpui 1.95 15.95 16.41 17.40 18.36 17.88 86.00
89 Zawlpui (Zawlnuam) 0.55 4.47 4.60 4.88 5.15 5.01 24.11
90 Zomuantlang 1.00 8.23 8.47 8.97 9.47 9.22 44.37
Total 100.00 818.90 842.64 892.97 942.58 917.78 4414.87
~ 511 ~
__________________________________________________________________________________
Annexure 9.30
(Para 9.44)
Year-wise share of Village Councils under Serchhip district on rural local body
(₹ in lakh)
Inter se
Sl.
No
%
1 2 3 4 5 6 7 8 9
1 Baktawng Vengpui 2.11 11.36 11.69 12.46 13.15 12.81 61.47

2 Bawktlang 0.91 4.88 5.02 5.35 5.65 5.50 26.40
3 Buangpui 1.01 5.43 5.59 5.96 6.29 6.13 29.41
4 Bungtlang 2.96 15.92 16.38 17.46 18.43 17.95 86.13
5 Chekawn 0.66 3.54 3.64 3.88 4.10 3.99 19.14
6 Chhiahtlang North 3.21 17.27 17.77 18.94 19.99 19.47 93.44
7 Chhiahtlang South 2.49 13.37 13.76 14.67 15.49 15.08 72.37
8 Chhingchhip 2.38 12.76 13.13 14.00 14.78 14.39 69.06
9 Chhuanthar Tlangnuam 2.76 14.82 15.25 16.26 17.17 16.72 80.22
10 Darnam 1.50 8.06 8.29 8.84 9.33 9.09 43.61
11 E.Lungdar 4.04 21.72 22.35 23.83 25.15 24.49 117.55
12 Hmawngkawn 0.84 4.49 4.62 4.93 5.20 5.07 24.31
13 Hmuntha 1.45 7.79 8.02 8.55 9.02 8.79 42.17
14 Hmunzawl 1.31 7.05 7.26 7.74 8.17 7.95 38.17
15 Hriangtlang 1.18 6.36 6.54 6.98 7.36 7.17 34.41
16 Hualtu 1.65 8.86 9.12 9.72 10.26 9.99 47.94
17 Kanghmun S 1.06 5.68 5.85 6.23 6.58 6.41 30.74
18 Keitum 2.36 12.66 13.02 13.89 14.66 14.27 68.50
19 Khawbel 1.33 7.15 7.36 7.84 8.28 8.06 38.69
20 Khawlailung 2.66 14.30 14.71 15.69 16.56 16.12 77.38
21 Khumtung 1.58 8.51 8.76 9.34 9.86 9.60 46.06
22 Leng 1.25 6.71 6.91 7.37 7.77 7.57 36.33
23 Lungchhuan 1.25 6.72 6.91 7.37 7.78 7.57 36.35
24 Lungkawlh 1.35 7.24 7.44 7.94 8.38 8.16 39.16
25 Lungpho 1.41 7.60 7.82 8.34 8.80 8.57 41.12
26 Mualcheng 2.08 11.19 11.51 12.27 12.95 12.61 60.54
27 Mualpui Chhingchhip 0.53 2.83 2.91 3.11 3.28 3.19 15.32
28 N.Vanlaiphai 4.74 25.47 26.21 27.95 29.50 28.72 137.85
29 Neihloh 1.22 6.56 6.75 7.19 7.59 7.39 35.48
30 New Serchhip N 2.57 13.82 14.22 15.17 16.01 15.59 74.81
~ 512 ~
Annexures
__________________________________________________________________________________
31 New Serchhip S 3.56 19.10 19.66 20.96 22.12 21.54 103.39

32 Ngentiang 1.19 6.37 6.56 6.99 7.38 7.19 34.50
33 Piler 1.06 5.69 5.86 6.25 6.59 6.42 30.81
34 Rullam 1.22 6.54 6.73 7.18 7.58 7.38 35.42
35 Sailulak 1.38 7.39 7.60 8.11 8.56 8.33 39.99
36 Serchhip – I 2.37 12.72 13.08 13.95 14.73 14.34 68.81
37 Serchhip - II 2.21 11.89 12.24 13.05 13.77 13.41 64.36
38 Serchhip – III 1.57 8.41 8.66 9.23 9.74 9.49 45.53
39 Serchhip - IV 1.73 9.29 9.55 10.19 10.75 10.47 50.25
40 Serchhip – V 1.34 7.18 7.38 7.87 8.31 8.09 38.83
41 Serchhip Chanmari 2.00 10.73 11.04 11.77 12.43 12.10 58.07
Veng
42 Serchhip VI 1.66 8.90 9.15 9.76 10.30 10.03 48.14
43 Serchhip VII 1.57 8.41 8.65 9.23 9.74 9.48 45.51
44 Serchhip VIII 2.96 15.87 16.33 17.42 18.38 17.90 85.91
45 Sialhau 1.50 8.05 8.28 8.83 9.32 9.07 43.54
46 Sialsir 0.91 4.86 5.00 5.33 5.63 5.48 26.31
47 Thentlang 1.15 6.15 6.33 6.75 7.12 6.94 33.29
48 Thenzawl East 5.84 31.35 32.26 34.40 36.31 35.35 169.67
49 Thenzawl Kanan 1.29 6.92 7.13 7.60 8.02 7.81 37.47
50 Thenzawl Vengthar 1.17 6.30 6.49 6.92 7.30 7.11 34.12
51 Thenzawl West 3.37 18.09 18.62 19.85 20.95 20.40 97.91
52 Thinglian (Serchhip) 0.81 4.35 4.48 4.78 5.04 4.91 23.57
53 Vanchengte 0.76 4.06 4.17 4.45 4.70 4.57 21.95
54 Zote S 1.56 8.38 8.62 9.20 9.71 9.45 45.36
Total 100.00 537.12 552.69 589.30 622.04 605.67 2906.81
~ 513 ~
__________________________________________________________________________________
Annexure 9.31
(Para 9.44)
Year-wise share of Village Councils under Saitual district on rural local body
(₹ in lakh)
Inter se
Sl.
No.
%
1 2 3 4 5 6 7 8 9
1 Buhban 1.43 6.90 7.10 7.52 7.94 7.73 37.20

2 Changzawl 1.62 7.86 8.08 8.57 9.04 8.80 42.35
3 Chiahpui 1.80 8.71 8.96 9.50 10.02 9.76 46.95
4 Daido 1.80 8.71 8.96 9.49 10.02 9.76 46.94
5 Dilkhan 1.07 5.20 5.35 5.67 5.98 5.82 28.01
6 Hliappui 2.82 13.63 14.02 14.86 15.68 15.27 73.45
7 Hrianghmun 1.52 7.37 7.58 8.04 8.48 8.26 39.73
8 Kawlbem 2.69 13.04 13.42 14.22 15.01 14.61 70.30
9 Keifang Leitan 2.10 10.18 10.48 11.10 11.72 11.41 54.90
10 Keifang Venghlun 2.41 11.65 11.99 12.71 13.41 13.06 62.83
11 Keifang Venglai 2.05 9.92 10.21 10.82 11.42 11.12 53.50
12 Khanpui 2.59 12.54 12.90 13.67 14.43 14.05 67.58
13 Khawkawn 1.84 8.90 9.16 9.71 10.25 9.98 48.00
14 Khawlian 3.32 16.07 16.54 17.52 18.50 18.01 86.65
15 Lailak 1.73 8.35 8.60 9.11 9.61 9.36 45.03
16 Lamherh 1.48 7.17 7.38 7.82 8.25 8.03 38.64
17 Lamzawl 1.35 6.52 6.71 7.11 7.51 7.31 35.16
18 Lenchim 1.09 5.27 5.43 5.75 6.07 5.91 28.43
19 Luangpawn 1.98 9.60 9.88 10.47 11.05 10.76 51.74
20 Maite 2.36 11.41 11.74 12.44 13.13 12.78 61.48
21 Mimbung 4.09 19.79 20.37 21.58 22.78 22.18 106.69
22 Mualpheng 1.60 7.76 7.99 8.46 8.93 8.70 41.84
23 N. Khawlek 1.89 9.13 9.39 9.95 10.50 10.23 49.20
24 N. Lungpher 1.71 8.30 8.54 9.05 9.55 9.30 44.73
25 NE Khawdungsei 3.01 14.56 14.98 15.88 16.76 16.32 78.50
26 NE. Tlangnuam 1.48 7.17 7.37 7.81 8.25 8.03 38.63
27 Ngopa 5.90 28.54 29.37 31.12 32.85 31.98 153.86
28 Pawlrang 1.73 8.36 8.60 9.11 9.62 9.36 45.05
29 Phuaibuang 3.96 19.16 19.72 20.89 22.05 21.47 103.30
30 Phullen 3.22 15.60 16.05 17.01 17.95 17.48 84.08
31 Ruallung 1.68 8.11 8.35 8.85 9.34 9.09 43.74
~ 514 ~
Annexures
__________________________________________________________________________________
32 Rulchawm 1.87 9.06 9.32 9.88 10.43 10.15 48.85

33 Saichal 1.92 9.31 9.58 10.15 10.72 10.43 50.19
34 Saitual I 3.30 15.99 16.45 17.43 18.40 17.92 86.18
35 Saitual II 3.29 15.92 16.38 17.36 18.32 17.84 85.82
36 Saitual III 2.79 13.48 13.87 14.70 15.51 15.10 72.66
37 Sihfa 1.96 9.48 9.75 10.33 10.90 10.62 51.08
38 Suangpuilawn 3.52 17.04 17.54 18.58 19.61 19.10 91.87
39 Tawizo 1.33 6.42 6.61 7.00 7.39 7.19 34.60
40 Teikhang 2.81 13.57 13.97 14.80 15.62 15.21 73.18
41 Thanglailung 1.73 8.38 8.62 9.13 9.64 9.39 45.16
42 Tualbung 1.85 8.95 9.21 9.76 10.30 10.03 48.24
43 Vanbawng 2.50 12.11 12.46 13.20 13.94 13.57 65.28
44 Zawngin 1.81 8.73 8.99 9.52 10.05 9.79 47.09
Total 100.00 483.92 497.94 527.62 556.94 542.28 2608.70
~ 515 ~
__________________________________________________________________________________
Annexure 9.32
(Para 9.44)
Year-wise share of Village Councils under Khawzawl district on rural local

(₹ in lakh)
Inter se
Sl.
No.
%
1 2 3 4 5 6 7 8 9
1 Aiduzawl 1.55 5.59 5.76 6.10 6.44 6.27 30.17

2 Arro 0.98 3.54 3.64 3.86 4.07 3.96 19.07
3 Biate 4.81 17.34 17.84 18.91 19.96 19.44 93.50
4 Chalrang 1.90 6.84 7.04 7.46 7.88 7.67 36.90
5 Chawngtlai 3.66 13.18 13.56 14.38 15.18 14.78 71.07
6 Chhawrtui 2.67 9.62 9.90 10.49 11.08 10.79 51.88
7 Dulte 2.25 8.11 8.35 8.85 9.34 9.10 43.75
8 Hmuncheng 1.64 5.91 6.08 6.44 6.80 6.62 31.85
9 Kawlkulh N 2.79 10.07 10.36 10.99 11.60 11.29 54.31
10 Kawlkulh South 4.99 18.00 18.52 19.63 20.72 20.17 97.04
11 Khawhai 5.60 20.19 20.77 22.02 23.24 22.63 108.85
12 Khawzawl Arro Veng 1.28 4.63 4.76 5.05 5.33 5.19 24.96
13 Khawzawl Darngawn 2.71 9.77 10.06 10.66 11.25 10.96 52.70
14 Khawzawl Dinthar 3.15 11.34 11.67 12.37 13.06 12.72 61.17
15 Khawzawl Electric 1.49 5.36 5.51 5.84 6.17 6.01 28.88
16 Khawzawl Hermon 3.21 11.57 11.91 12.62 13.32 12.97 62.40
17 Khawzawl Kawnzar 1.81 6.51 6.70 7.10 7.50 7.30 35.10
18 Khawzawl Vengthar 6.14 22.14 22.78 24.15 25.49 24.82 119.39
19 Khawzawl Zaingen 2.74 9.88 10.17 10.78 11.38 11.08 53.27
20 Khawzawl Zuchhip 3.03 10.91 11.22 11.90 12.56 12.23 58.81
21 Khualen 1.22 4.39 4.52 4.79 5.06 4.92 23.68
22 Lungtan 1.81 6.54 6.73 7.13 7.53 7.33 35.26
23 Lungvar 2.15 7.76 7.98 8.46 8.93 8.69 41.82
24 Neihdawn 2.05 7.39 7.61 8.06 8.51 8.29 39.87
25 New Chalrang 1.84 6.63 6.82 7.23 7.63 7.43 35.75
26 Ngaizawl 2.62 9.45 9.72 10.30 10.88 10.59 50.94
27 Pamchung 1.81 6.53 6.72 7.13 7.52 7.33 35.24
28 Puilo 1.65 5.96 6.14 6.51 6.87 6.69 32.16
29 Rabung 4.31 15.54 15.99 16.95 17.89 17.42 83.80
30 Riangtlei 2.20 7.95 8.18 8.67 9.15 8.91 42.84
31 Sialhawk 4.73 17.04 17.53 18.59 19.62 19.10 91.88
~ 516 ~
Annexures
__________________________________________________________________________________
32 Tlangmawi 1.67 6.01 6.18 6.56 6.92 6.74 32.41

33 Tlangpui 2.72 9.79 10.07 10.68 11.27 10.98 52.79
34 Tualpui 1.59 5.71 5.88 6.23 6.58 6.41 30.82
35 Tualte 3.00 10.81 11.13 11.80 12.45 12.12 58.31
36 Vanchengpui 2.70 9.73 10.01 10.62 11.20 10.91 52.48
37 Vangtlang 1.61 5.81 5.98 6.34 6.69 6.51 31.32
38 Vankal 1.91 6.87 7.07 7.49 7.91 7.70 37.05
Total 100.00 360.43 370.88 393.14 414.98 404.06 1943.50
~ 517 ~
__________________________________________________________________________________
Annexure 9.33
(Para 9.44)
Year-wise share of Village Councils under Hnahthial district on rural local
(₹ in lakh)
Sl. Inter se
Village Council 2021-22 2022-23 2023-24 2024-25 2025-26 Total
No. share in %
1 2 3 4 5 6 7 8 9
1 Aithur 1.69 6.30 6.80 7.08 7.40 8.00 35.58
2 Bualpui H 3.38 12.57 13.58 14.13 14.76 15.96 70.99
3 Bualpui V 2.13 7.94 8.57 8.92 9.32 10.07 44.81
4 Cherhlun 6.68 24.87 26.85 27.94 29.19 31.56 140.41
5 Chhipphir 3.67 13.65 14.74 15.34 16.03 17.33 77.09
6 Darzo 4.22 15.72 16.97 17.66 18.46 19.95 88.77
7 Denlung 1.45 5.41 5.85 6.08 6.36 6.87 30.57
8 Hnahthial N - I 5.89 21.94 23.69 24.65 25.76 27.85 123.88
9 Hnahthial North II 4.55 16.94 18.29 19.03 19.89 21.50 95.66
10 Hnahthial S - I 2.56 9.53 10.29 10.71 11.19 12.10 53.84
11 Hnahthial S - II 3.96 14.73 15.91 16.55 17.30 18.70 83.19
12 Hnahthial South III 3.00 11.17 12.06 12.55 13.11 14.17 63.06
13 Khawhri 1.83 6.81 7.35 7.65 8.00 8.65 38.46
14 Leite 2.54 9.46 10.22 10.63 11.11 12.01 53.43
15 Lungmawi 1.85 6.89 7.44 7.74 8.09 8.75 38.91
16 Lungpuitlang 1.56 5.81 6.27 6.53 6.82 7.37 32.80
17 Muallianpui 3.83 14.27 15.40 16.03 16.75 18.11 80.56
18 New Kawnpui 1.62 6.02 6.50 6.76 7.07 7.64 33.99
(Hnahthial)
19 New Ngharchhip 1.77 6.59 7.11 7.40 7.74 8.36 37.20
20 Ngharchhip 1.45 5.39 5.82 6.05 6.32 6.84 30.41
21 Pangzawl North 3.63 13.53 14.61 15.20 15.89 17.18 76.41
22 Pangzawl South 5.00 18.61 20.09 20.91 21.85 23.62 105.07
23 Phaileng S 1.67 6.22 6.72 6.99 7.30 7.90 35.13
24 Rawpui 2.63 9.80 10.58 11.01 11.50 12.43 55.31
25 Rotlang East 2.46 9.17 9.90 10.30 10.76 11.64 51.77
26 S.Chawngtui 2.53 9.43 10.18 10.60 11.07 11.97 53.25
27 S.Lungleng 1.50 5.60 6.05 6.29 6.57 7.11 31.62
28 South Vanlaiphai 6.14 22.85 24.67 25.67 26.82 29.00 129.00
29 Tarpho 1.71 6.36 6.87 7.15 7.47 8.08 35.92
30 Thiltlang 3.37 12.56 13.57 14.12 14.75 15.95 70.95
31 Thingsai 7.18 26.72 28.85 30.03 31.37 33.92 150.90
32 Tuipui D 2.54 9.47 10.23 10.64 11.12 12.02 53.48
Total 100.00 372.34 402.01 418.35 437.13 472.61 2102.44
~ 518 ~
Annexures
__________________________________________________________________________________
Annexure 9.34
(Para 9.44)
Year-wise share of Village Councils under Siaha district on rural local body
(₹ in lakh)
Inter se
Sl.
No.
%
1 2 3 4 5 6 7 8 9
1 AHMYPI 0.57 2.91 2.99 3.18 3.35 3.27 15.70

2 AMOBYU BEIVAH 1.04 5.30 5.46 5.80 6.12 5.96 28.63
3 AMOBYU CH 0.41 2.08 2.14 2.27 2.40 2.33 11.22
4 AMOBYU VAIHTHIEH 1.01 5.15 5.30 5.64 5.95 5.79 27.83
5 AMOHTLAH 0.96 4.90 5.04 5.36 5.66 5.51 26.46
6 BYMARI 0.92 4.71 4.84 5.15 5.43 5.29 25.42
7 CHAKHEI - I 1.12 5.71 5.88 6.25 6.59 6.42 30.84
8 CHAKHEI - II 0.82 4.21 4.33 4.60 4.86 4.73 22.73
9 CHAKHEITLAH 0.65 3.30 3.40 3.61 3.81 3.71 17.83
10 CHAPI - I 0.76 3.89 4.00 4.25 4.49 4.37 20.99
11 CHAPI - II 0.93 4.74 4.88 5.19 5.48 5.33 25.63
12 CHAPI - III 0.62 3.16 3.25 3.46 3.65 3.55 17.07
13 CHHAOLO - I 0.99 5.06 5.20 5.53 5.84 5.68 27.31
14 CHHAOLO - II 0.78 3.98 4.09 4.35 4.59 4.47 21.47
15 CHHAOLO - III 0.69 3.52 3.62 3.85 4.06 3.96 19.00
16 CHHEIHLU 0.93 4.75 4.89 5.19 5.48 5.34 25.65
17 COLLEGE VAIH - I 2.05 10.46 10.77 11.44 12.08 11.76 56.51
18 COLLEGE VAIH - II 3.05 15.58 16.03 17.04 17.99 17.52 84.16
19 COUNCIL VAIH 1.84 9.41 9.69 10.30 10.87 10.58 50.85
20 ECM VAIH 1.47 7.51 7.73 8.21 8.67 8.44 40.56
21 IANA 0.93 4.76 4.90 5.21 5.50 5.35 25.72
22 KAOCHAO EAST - I 0.82 4.18 4.30 4.57 4.82 4.69 22.56
23 KAOCHAO EAST - II 1.14 5.84 6.01 6.39 6.74 6.56 31.54
24 Khaikhy 0.58 2.95 3.04 3.23 3.41 3.32 15.94
25 KHOPAI 1.11 5.68 5.84 6.21 6.55 6.38 30.66
26 KIASIE 0.84 4.30 4.43 4.71 4.97 4.84 23.24
27 LAKI -I 1.13 5.77 5.94 6.31 6.66 6.49 31.18
28 LAKI -II 0.99 5.06 5.20 5.53 5.84 5.68 27.30
29 LATY 0.64 3.26 3.36 3.57 3.77 3.67 17.62
30 LOBO - I 0.96 4.93 5.07 5.39 5.69 5.54 26.64
31 LOBO - II 0.67 3.41 3.51 3.73 3.94 3.83 18.42
~ 519 ~
__________________________________________________________________________________
32 LODAWH 0.72 3.67 3.77 4.01 4.23 4.12 19.80

33 Longmasu 0.76 3.87 3.99 4.24 4.47 4.36 20.93
34 Lorrain Ville 0.60 3.04 3.13 3.33 3.51 3.42 16.44
35 LUNGPUK 0.73 3.74 3.85 4.09 4.32 4.21 20.21
36 Lungpuk II 0.79 4.04 4.16 4.42 4.67 4.54 21.83
37 Lungpuk III 0.66 3.38 3.47 3.69 3.90 3.79 18.23
38 MAISA 0.70 3.56 3.66 3.89 4.11 4.00 19.21
39 MAWHRE 1.06 5.41 5.56 5.91 6.24 6.08 29.20
40 MEISATLA -I 1.56 7.96 8.19 8.71 9.19 8.95 43.00
41 MEISATLA -II 0.97 4.95 5.10 5.42 5.72 5.57 26.75
42 MEISAVAIH EAST 1.56 7.99 8.22 8.73 9.22 8.98 43.14
43 MEISAVAIH WEST 1.21 6.18 6.36 6.76 7.13 6.95 33.38
44 MIEPU I 0.52 2.68 2.76 2.93 3.09 3.01 14.46
45 Miepu II 0.72 3.68 3.79 4.03 4.25 4.14 19.90
46 New Colony - IV 0.95 4.85 4.99 5.30 5.60 5.45 26.19
47 NEW COLONY-I 2.02 10.30 10.60 11.27 11.89 11.58 55.65
48 NEW COLONY-II 1.50 7.65 7.88 8.37 8.83 8.60 41.34
49 NEW COLONY-III 1.28 6.57 6.76 7.18 7.58 7.38 35.46
50 NEW LATAWH 0.90 4.62 4.76 5.06 5.34 5.20 24.98
51 NEW SAIHA EAST 2.02 10.34 10.64 11.31 11.94 11.63 55.86
52 NEW SAIHA WEST 4.21 21.53 22.15 23.54 24.85 24.20 116.28
53 New Saikao 0.49 2.51 2.58 2.74 2.89 2.82 13.53
54 New Siaha East - II 1.45 7.42 7.64 8.12 8.57 8.34 40.09
55 NO-AOTLA - I 1.70 8.68 8.93 9.49 10.02 9.76 46.88
56 NO-AOTLA - II 1.58 8.10 8.33 8.85 9.35 9.10 43.73
57 NO-AOTLA - III 0.48 2.44 2.51 2.66 2.81 2.74 13.15
58 OLD TISOPI 0.78 3.96 4.08 4.34 4.58 4.46 21.41
59 Pala 1.02 5.21 5.36 5.70 6.01 5.85 28.13
60 Phura N 0.99 5.05 5.19 5.52 5.82 5.67 27.25
61 Phura S 0.89 4.57 4.70 5.00 5.28 5.14 24.69
62 RIASIKAH 0.60 3.07 3.16 3.36 3.54 3.45 16.57
63 SAIHA VAIHPI - I 2.13 10.87 11.19 11.89 12.55 12.22 58.73
64 Saikao 1.03 5.26 5.41 5.75 6.07 5.91 28.39
65 Saikao Beivah 0.78 4.01 4.13 4.38 4.63 4.51 21.65
66 SIAHA VAIHPI - II 1.49 7.61 7.83 8.33 8.79 8.56 41.12
67 SIAHA VAIHPI -III 1.85 9.47 9.74 10.35 10.93 10.64 51.13
68 SIAHATLA - I 2.04 10.43 10.73 11.41 12.04 11.72 56.34
69 SIAHATLA - II 2.24 11.45 11.78 12.52 13.21 12.87 61.82
70 SIAHATLA - III 1.37 7.02 7.23 7.68 8.11 7.89 37.93
~ 520 ~
Annexures
__________________________________________________________________________________
71 SIASI 0.78 3.98 4.09 4.35 4.59 4.47 21.48

72 SIATA -I 1.00 5.09 5.24 5.57 5.88 5.72 27.50
73 SIATA-II 0.72 3.68 3.78 4.02 4.24 4.13 19.86
74 SIATLAI 0.69 3.53 3.64 3.87 4.08 3.97 19.09
75 THEIRI 0.98 5.00 5.14 5.47 5.77 5.62 27.00
76 THEIVA 1.07 5.45 5.60 5.96 6.29 6.12 29.42
77 THIAHRA 0.86 4.38 4.51 4.79 5.05 4.92 23.65
78 THOSAI 0.81 4.15 4.27 4.54 4.79 4.67 22.43
79 Tipa Beivah 0.97 4.96 5.11 5.43 5.73 5.58 26.81
80 Tipa D-I 0.81 4.15 4.27 4.54 4.79 4.67 22.43
81 Tipa D-II 0.89 4.53 4.66 4.95 5.22 5.09 24.44
82 Tipa V-I 1.15 5.88 6.05 6.44 6.79 6.61 31.78
83 Tipa V-II 0.69 3.55 3.65 3.88 4.10 3.99 19.17
84 Tipa V-III 0.80 4.11 4.22 4.49 4.74 4.61 22.17
85 TIPI FERRY 0.64 3.28 3.38 3.59 3.79 3.69 17.72
86 Tisi - I 0.91 4.66 4.80 5.10 5.38 5.24 25.18
87 Tisi - II 0.91 4.64 4.78 5.08 5.36 5.22 25.07
88 TISOPI 0.93 4.76 4.89 5.20 5.49 5.35 25.69
89 Tokalo 0.91 4.66 4.79 5.09 5.38 5.23 25.15
90 Vahia 1.10 5.63 5.79 6.16 6.50 6.33 30.41
91 ZAWNGLING B 0.96 4.89 5.03 5.34 5.64 5.49 26.39
92 Zawngling Lotai 0.72 3.66 3.77 4.00 4.23 4.12 19.78
93 Zyhno 0.96 4.91 5.06 5.37 5.67 5.52 26.54
Total 100.00 511.13 525.95 558.99 590.04 574.51 2760.63
~ 521 ~
__________________________________________________________________________________
Annexure 9.35
(Para 9.44)
Year-wise share of Village Councils under Lawngtlai district on rural local

(₹ in lakh)
Inter se
Sl.
No.
%
1 2 3 4 5 6 7 8 9
1 Adubangasora 0.34 3.84 4.15 4.36 4.55 4.92 21.81

2 Ajasora-I 0.42 4.86 5.24 5.51 5.76 6.22 27.59
3 Ajasora-II 0.47 5.42 5.85 6.15 6.43 6.95 30.80
4 Ajasora-III 0.35 3.99 4.31 4.53 4.73 5.11 22.67
5 AOC Veng 0.94 10.79 11.65 12.24 12.78 13.82 61.28
6 Archhuang 0.44 5.03 5.43 5.70 5.96 6.44 28.55
7 Arotinagar 0.32 3.67 3.96 4.16 4.35 4.70 20.85
8 Baganpara 0.49 5.58 6.03 6.33 6.61 7.15 31.70
9 Bajeisora 0.50 5.70 6.15 6.46 6.75 7.30 32.35
10 Bandukbanga 0.52 6.00 6.48 6.81 7.11 7.69 34.10
11 Baraguisury 0.31 3.57 3.86 4.05 4.23 4.58 20.30
12 Barapansury East 0.62 7.08 7.65 8.03 8.39 9.08 40.23
13 Barapansury I 1.00 11.44 12.35 12.98 13.56 14.66 65.00
14 Barapansury-II 0.92 10.47 11.31 11.88 12.41 13.42 59.49
15 Barkalak 0.44 5.04 5.44 5.72 5.97 6.46 28.63
16 Barkobakhali 0.42 4.84 5.23 5.49 5.74 6.21 27.51
17 Barkobakhali II 0.33 3.79 4.10 4.30 4.50 4.86 21.55
18 Betbonya 0.30 3.44 3.72 3.91 4.08 4.41 19.56
19 Billosora 0.39 4.49 4.85 5.09 5.32 5.75 25.51
20 BOLISORA 0.70 7.96 8.60 9.03 9.44 10.20 45.23
21 Boranasury 0.34 3.88 4.19 4.40 4.60 4.98 22.06
22 Boroituli 0.33 3.76 4.06 4.26 4.46 4.82 21.36
23 Bualpui Ng I 1.04 11.88 12.82 13.47 14.07 15.22 67.46
24 Bualpui Ng II 0.41 4.70 5.07 5.33 5.57 6.02 26.68
25 Bungtlang S I 0.88 10.09 10.89 11.45 11.96 12.93 57.32
26 Bungtlang S II 0.67 7.62 8.23 8.65 9.03 9.77 43.30
27 CHAMDUR P I 0.54 6.14 6.63 6.96 7.28 7.87 34.88
28 CHAMDUR P II 0.36 4.06 4.39 4.61 4.82 5.21 23.09
29 CHAMDURTLANG I 0.45 5.16 5.57 5.85 6.11 6.61 29.30
30 CHAMDURTLANG II 0.23 2.60 2.80 2.94 3.08 3.33 14.75
31 Chaminisora 0.27 3.11 3.36 3.53 3.69 3.99 17.68
~ 522 ~
Annexures
__________________________________________________________________________________
32 Charluitlang 0.28 3.15 3.40 3.57 3.73 4.04 17.89

33 Chawngtelui 0.40 4.53 4.90 5.14 5.37 5.81 25.76
34 Chawngte-P 1.17 13.39 14.46 15.19 15.87 17.16 76.08
35 Chawnhu 0.37 4.25 4.59 4.82 5.04 5.44 24.14
36 Chawntlangpui 0.27 3.12 3.37 3.54 3.70 4.00 17.75
37 Cheural 0.72 8.29 8.95 9.40 9.82 10.62 47.07
38 CHIKHURLUI 0.40 4.54 4.91 5.15 5.38 5.82 25.81
39 Chongrasury 0.25 2.89 3.13 3.28 3.43 3.71 16.44
40 Chotapansury 0.54 6.23 6.73 7.07 7.38 7.98 35.39
41 Chotoguisury-I 0.35 4.04 4.36 4.58 4.78 5.17 22.93
42 Chotoguisury-II 0.31 3.58 3.87 4.06 4.25 4.59 20.35
43 Chotokobakhali 0.29 3.35 3.62 3.80 3.97 4.30 19.05
44 College Veng 1.70 19.49 21.04 22.11 23.10 24.98 110.72
45 Council Veng 1.44 16.44 17.75 18.65 19.49 21.07 93.40
46 Damlui 0.51 5.87 6.33 6.65 6.95 7.52 33.32
47 Darnamtlang 0.30 3.40 3.67 3.85 4.03 4.35 19.31
48 Devasora N 0.62 7.07 7.63 8.02 8.38 9.06 40.17
49 Devasora S 0.47 5.34 5.76 6.06 6.33 6.84 30.33
50 Diltlang S 0.74 8.51 9.19 9.65 10.09 10.90 48.34
51 DUMZAUTLANG 0.40 4.55 4.91 5.16 5.39 5.82 25.82
52 Dursora 0.34 3.88 4.19 4.40 4.59 4.97 22.02
53 Electric Veng 1.76 20.18 21.79 22.89 23.92 25.86 114.63
54 FANGFARLUI 0.29 3.32 3.59 3.77 3.94 4.26 18.87
55 Fulsora 0.26 2.93 3.16 3.32 3.47 3.75 16.64
56 Fultuli 0.43 4.97 5.36 5.64 5.89 6.37 28.22
57 Futsury 0.52 5.97 6.44 6.77 7.07 7.65 33.90
58 Gabasury 0.27 3.14 3.39 3.56 3.72 4.02 17.84
59 Gerakuluksora 0.39 4.42 4.77 5.01 5.24 5.66 25.10
60 Gerasury 0.32 3.68 3.97 4.18 4.36 4.72 20.91
61 Golasury 0.54 6.22 6.71 7.05 7.37 7.96 35.31
62 Gulsingbapsora 0.38 4.38 4.73 4.97 5.19 5.61 24.88
63 Hmawngbu 0.77 8.80 9.50 9.98 10.43 11.28 50.00
64 Hmawngbuchhuah 0.42 4.77 5.15 5.42 5.66 6.12 27.12
65 Hmunlai 0.30 3.42 3.70 3.88 4.06 4.39 19.45
66 HMUNNUAM 0.48 5.51 5.95 6.25 6.53 7.06 31.31
67 Hruitezawl 0.60 6.90 7.45 7.83 8.18 8.85 39.22
68 Jamersury 0.26 2.95 3.19 3.35 3.50 3.78 16.76
69 Jaruldubosora 0.48 5.55 5.99 6.29 6.57 7.11 31.50
70 Jarulsury-I 0.34 3.92 4.23 4.45 4.65 5.03 22.28
~ 523 ~
__________________________________________________________________________________
71 Jarulsury-II 0.45 5.10 5.51 5.79 6.05 6.54 28.99

72 Jognasuri 0.81 9.26 10.00 10.50 10.97 11.87 52.60
73 Kakichhuah 0.43 4.95 5.34 5.61 5.86 6.34 28.10
74 Kamalanagar V 0.55 6.30 6.80 7.14 7.46 8.07 35.77
75 Kamalanagar VI 0.35 4.05 4.38 4.60 4.81 5.20 23.03
76 Kamalanagar-I 1.53 17.54 18.94 19.90 20.79 22.48 99.65
77 Kamalanagar-II 1.41 16.13 17.42 18.30 19.12 20.67 91.64
78 Kamalanagar-III 1.25 14.27 15.40 16.18 16.91 18.28 81.04
79 Kamalanagar-IV 0.76 8.73 9.42 9.90 10.35 11.19 49.59
80 Kamtuli 0.47 5.39 5.82 6.12 6.39 6.91 30.64
81 Karlui - I 0.56 6.44 6.96 7.31 7.64 8.26 36.60
82 Karlui II 0.52 5.93 6.40 6.72 7.03 7.60 33.67
83 Kawlchaw W 0.38 4.37 4.72 4.96 5.18 5.60 24.83
84 Kawnkhua 0.29 3.34 3.61 3.79 3.96 4.28 19.00
85 Kawrthindeng 0.83 9.47 10.22 10.74 11.22 12.13 53.79
86 Kukurduleya 0.55 6.29 6.79 7.13 7.45 8.06 35.71
87 Kurbalovasora 0.50 5.67 6.12 6.43 6.72 7.26 32.20
88 LAITLANG 0.32 3.70 3.99 4.19 4.38 4.74 21.00
89 Lakkisury 0.41 4.72 5.10 5.36 5.60 6.05 26.83
90 Lawngtlai I (Vengpui - I) 1.61 18.43 19.90 20.91 21.84 23.62 104.70
91 Lawngtlai I (Vengpui - II) 0.66 7.54 8.14 8.55 8.93 9.66 42.81
92 Lawngtlai II (Bazar Veng) 1.96 22.43 24.22 25.44 26.58 28.74 127.41
93 Lawngtlai IV (Chandmary - II) 2.85 32.59 35.19 36.97 38.62 41.76 185.13
94 Lawngtlai IV (Chanmary - I) 1.24 14.23 15.36 16.14 16.86 18.23 80.82
95 Lawngtlai-III 1.83 20.94 22.60 23.75 24.81 26.83 118.92
96 Longpuighat 0.47 5.35 5.78 6.07 6.34 6.85 30.39
97 Longpuighat-II 0.37 4.24 4.57 4.80 5.02 5.43 24.06
98 Ludisora 0.36 4.13 4.46 4.69 4.90 5.29 23.47
99 Lunghauka 0.53 6.09 6.58 6.91 7.22 7.80 34.60
100 Lungpher 0.83 9.52 10.28 10.80 11.28 12.20 54.08
101 Lungtian II 0.31 3.57 3.86 4.05 4.23 4.58 20.29
102 Lungtian-I 0.62 7.13 7.70 8.09 8.46 9.14 40.53
103 Lungzarhtum 0.59 6.69 7.23 7.59 7.93 8.58 38.03
104 M.KAWNPUI 0.68 7.74 8.36 8.78 9.17 9.92 43.97
105 Mainabapsora-I 0.44 5.04 5.44 5.71 5.97 6.45 28.61
106 Mainabapsora-II 0.40 4.53 4.90 5.14 5.37 5.81 25.76
107 Mampui 0.57 6.57 7.09 7.45 7.79 8.42 37.32
108 Mandirasora 0.50 5.74 6.19 6.51 6.80 7.35 32.59
109 Massury 0.31 3.57 3.86 4.05 4.23 4.58 20.29
~ 524 ~
Annexures
__________________________________________________________________________________
110 Mautlang (Lawngtlai) 0.39 4.44 4.79 5.03 5.26 5.69 25.21
111 Montola 0.50 5.74 6.19 6.51 6.80 7.35 32.58
112 Mualbu L 0.39 4.49 4.85 5.10 5.33 5.76 25.53
113 Nagdarasora 0.35 4.05 4.37 4.60 4.80 5.19 23.02
114 Nalbonya 0.42 4.85 5.24 5.50 5.75 6.21 27.55
115 New Jaganasury I 0.48 5.48 5.92 6.22 6.49 7.02 31.13
116 New Jaganasury II 0.34 3.84 4.15 4.36 4.55 4.92 21.82
117 New Jaganasury III 0.34 3.85 4.15 4.36 4.56 4.93 21.86
118 Ngengpuikai 1.06 12.08 13.04 13.70 14.32 15.48 68.61
119 Ngengpuitlang 0.45 5.19 5.60 5.88 6.15 6.65 29.46
120 NGHALIMLUI 0.77 8.86 9.56 10.05 10.50 11.35 50.31
121 NGUNLINGKHUA 0.41 4.68 5.05 5.31 5.54 5.99 26.57
122 Old Bajeisora 0.34 3.84 4.14 4.35 4.55 4.92 21.80
123 Paithar 0.34 3.86 4.17 4.38 4.58 4.95 21.95
124 PANDAWNGLUI 0.43 4.92 5.31 5.58 5.83 6.30 27.94
125 Pangkhua 0.85 9.68 10.45 10.98 11.47 12.40 54.99
126 Parva IV 0.49 5.61 6.06 6.37 6.65 7.19 31.89
127 Parva-I 0.74 8.50 9.17 9.64 10.07 10.89 48.26
128 Parva-II 0.38 4.34 4.68 4.92 5.14 5.56 24.64
129 Parva-III 0.28 3.21 3.47 3.64 3.81 4.12 18.25
130 Pelenosora 0.43 4.91 5.30 5.57 5.82 6.29 27.89
131 R.Vanhne 0.31 3.55 3.83 4.02 4.20 4.54 20.14
132 Rajmondal 0.33 3.79 4.09 4.30 4.49 4.86 21.54
133 Rawlbuk 0.43 4.91 5.30 5.57 5.82 6.29 27.87
134 Rengkashya 0.65 7.40 7.99 8.39 8.77 9.48 42.04
135 Rulkual 0.44 5.00 5.40 5.67 5.93 6.41 28.42
136 Sabualtlang 0.41 4.64 5.00 5.26 5.49 5.94 26.33
137 SAIBAWH 0.71 8.16 8.81 9.25 9.67 10.45 46.33
138 Saikah L 0.17 1.93 2.08 2.19 2.29 2.47 10.96
139 Saikah u 0.26 3.01 3.25 3.42 3.57 3.86 17.11
140 Saikhawthlir (Lawngtlai) 0.26 2.94 3.18 3.34 3.49 3.77 16.72
141 Saizawh E 0.46 5.26 5.68 5.96 6.23 6.74 29.86
142 Saizawh W 0.33 3.82 4.12 4.33 4.52 4.89 21.68
143 Sakeilui-I 0.28 3.16 3.41 3.58 3.74 4.05 17.94
144 Sakeilui-II 0.38 4.29 4.64 4.87 5.09 5.50 24.40
145 Samuksora 0.29 3.35 3.62 3.80 3.97 4.30 19.05
146 Sangau III 0.37 4.25 4.59 4.82 5.04 5.45 24.16
147 Sangau IV 0.53 6.11 6.60 6.94 7.25 7.83 34.73
148 Sangau-I 0.83 9.52 10.27 10.79 11.28 12.19 54.05
~ 525 ~
__________________________________________________________________________________
149 Sangau-II 0.76 8.65 9.34 9.81 10.25 11.08 49.12

150 Sentetfiang 0.26 2.93 3.16 3.32 3.47 3.76 16.65
151 Siachangkawn 0.53 6.11 6.60 6.93 7.24 7.83 34.70
152 Sihtlangpui 0.32 3.69 3.98 4.18 4.37 4.72 20.95
153 Silbanga 0.29 3.30 3.57 3.75 3.91 4.23 18.76
154 Sillosora 0.31 3.51 3.79 3.98 4.16 4.50 19.94
155 Silsury 0.42 4.78 5.16 5.42 5.66 6.12 27.14
156 Simeisury 0.34 3.86 4.16 4.37 4.57 4.94 21.91
157 Siminasora 0.34 3.93 4.24 4.46 4.66 5.04 22.32
158 Sumsilui 0.88 10.11 10.92 11.47 11.99 12.96 57.46
159 T Dumzau 0.39 4.49 4.84 5.09 5.32 5.75 25.48
160 Thaltlang 0.44 5.03 5.44 5.71 5.97 6.45 28.60
161 Thingkah 1.09 12.44 13.43 14.11 14.74 15.94 70.67
162 Tialdawngilung 0.29 3.31 3.57 3.75 3.92 4.24 18.78
163 TUICHAWNGTLANG 0.62 7.07 7.63 8.02 8.37 9.05 40.14
164 Tuidangtlang 0.32 3.65 3.94 4.14 4.32 4.67 20.71
165 Tuikhurlui 0.37 4.24 4.58 4.81 5.02 5.43 24.07
166 TUISENTLANG 0.36 4.09 4.41 4.63 4.84 5.24 23.21
167 Tuithumhnar 0.58 6.68 7.21 7.57 7.91 8.55 37.92
168 Tungosora 0.29 3.31 3.57 3.75 3.92 4.24 18.80
169 Udalthana-I 0.67 7.61 8.22 8.63 9.02 9.75 43.23
170 Udalthana-II 0.60 6.84 7.38 7.76 8.10 8.76 38.84
171 Ugalsury 0.50 5.77 6.23 6.54 6.84 7.39 32.77
172 Ugudasury N 0.35 4.03 4.35 4.57 4.78 5.16 22.89
173 Ugudasury South 0.59 6.74 7.28 7.65 7.99 8.64 38.30
174 Ulusury 0.41 4.72 5.09 5.35 5.59 6.04 26.79
175 Vaiseitlang-I 0.36 4.11 4.44 4.66 4.87 5.27 23.34
176 Vaiseitlang-II 0.35 4.04 4.36 4.58 4.78 5.17 22.93
177 Vartek 0.26 2.98 3.22 3.38 3.53 3.82 16.92
178 Vartekkai 0.31 3.52 3.80 3.99 4.17 4.51 19.97
179 VATHUAMPUI 0.83 9.49 10.25 10.77 11.25 12.16 53.93
180 Vawmbuk 0.64 7.29 7.87 8.27 8.64 9.34 41.42
181 Vawmbuk II 0.37 4.24 4.57 4.81 5.02 5.43 24.07
182 Veseikai 0.67 7.67 8.28 8.70 9.09 9.82 43.55
183 Zochachhuah 0.33 3.72 4.02 4.22 4.41 4.77 21.14
Total 100.00 1144.09 1235.26 1297.72 1355.96 1466.02 6499.05
~ 526 ~
Annexures
__________________________________________________________________________________
Annexure 9.36
(Para 9.58)
Year-wise share of Local Councils on State tax devolution under Aizawl

(₹ in lakh)
Inter se
share as
Name Name of Local
per the
of Sl. No. Council within 2021-22 2022-23 2023-24 2024-25 2025-26
horizontal
Wards the Ward
devolution
criteria
1 2 3 4 5 6 7 8 9
1 Selesih 0.26 0.48 0.60 0.90 1.00 1.16
2 Durtlang North 0.49 0.91 1.14 1.73 1.90 2.22
3 Durtlang 1.14 2.12 2.65 4.02 4.42 5.17
1 4 Durtlang Leitan
2.42 4.49 5.63 8.53 9.40 10.97
5 Leitan Ramthar
6 Zuangtui 1.13 2.10 2.63 3.99 4.39 5.13
7 Muanna Veng 0.62 1.15 1.45 2.19 2.41 2.82
8 Chaltlang
Chaltlang Lily
9
Veng 3.98 7.39 9.26 14.04 15.46 18.06
Phunchawng
2 10 (from Ward no.
11)
11 Bawngkawn 2.46 4.57 5.73 8.68 9.56 11.17
Bawngkawn
12 0.65 1.21 1.52 2.30 2.53 2.96
South
13 Ramhlun North 2.46 4.58 5.73 8.69 9.57 11.18
Ramhlun
14 1.08 2.01 2.52 3.82 4.21 4.92
Venglai
Ramhlun
3 15 0.85 1.58 1.98 3.00 3.31 3.86
Vengthar
Ramhlun Sport
16 0.28 0.51 0.64 0.98 1.07 1.25
Complex
17 Laipuitlang 0.57 1.05 1.32 2.00 2.20 2.57
18 Ramhlun South 1.79 3.33 4.18 6.33 6.97 8.14
19 Ramthar North 0.55 1.03 1.29 1.95 2.15 2.51
4
20 Ramthar Veng 1.43 2.67 3.34 5.06 5.58 6.51
21 Aizawl Venglai 0.68 1.27 1.59 2.41 2.66 3.10
22 Electric Veng 1.70 3.15 3.95 5.99 6.60 7.71
5 23 Chanmari 1.89 3.52 4.41 6.69 7.36 8.60
24 Zarkawt 0.71 1.33 1.66 2.52 2.78 3.24
25 Chanmari West 1.73 3.22 4.04 6.12 6.74 7.87
6
26 Edenthar 1.23 2.30 2.88 4.36 4.80 5.61
~ 527 ~
__________________________________________________________________________________
27 Hunthar 0.78 1.46 1.82 2.76 3.04 3.56

28 Zemabawk
Zemabawk 3.21 5.97 7.48 11.34 12.49 14.59
29
South
7 Zemabawk
30 1.04 1.93 2.42 3.66 4.04 4.71
North
31 Falkland 0.38 0.71 0.89 1.35 1.48 1.73
32 Thuampui 2.36 4.38 5.49 8.33 9.17 10.71
33 Armed Veng 1.12 2.08 2.61 3.95 4.35 5.08
Armed Veng
8 34 1.38 2.57 3.22 4.89 5.38 6.29
South
35 Chite 0.18 0.34 0.42 0.64 0.71 0.83
36 Dawrpui 1.03 1.92 2.41 3.65 4.02 4.70
37 Saron Veng 0.86 1.60 2.01 3.05 3.35 3.92
9
38 Chhinga Veng 2.11 3.93 4.92 7.45 8.21 9.59
39 Tuithiang 1.19 2.21 2.76 4.19 4.61 5.39
40 Chawnpui 1.11 2.07 2.59 3.93 4.33 5.05
41 Zotlang 0.84 1.56 1.95 2.96 3.26 3.81
10
42 Zonuam 0.73 1.36 1.71 2.58 2.85 3.33
43 Ainawn Veng 0.79 1.47 1.85 2.80 3.08 3.60
44 Luangmual 1.51 2.80 3.51 5.32 5.86 6.84
45 Chawlhhmun 1.86 3.47 4.34 6.58 7.25 8.47
46 Tanhril
11 1.75 3.25 4.07 6.17 6.80 7.94
47 Tuivamit
48 Sakawrtuichhun 0.50 0.93 1.16 1.76 1.94 2.26
49 Rangvamual 0.49 0.90 1.13 1.72 1.89 2.21
50 Tuikual North 1.31 2.43 3.05 4.62 5.09 5.94
12 51 Tuikual South 2.45 4.55 5.70 8.64 9.52 11.12
52 Dinthar 2.94 5.47 6.86 10.39 11.45 13.37
Dawrpui
53 1.14 2.11 2.65 4.02 4.42 5.17
Vengthar
13 54 Vaivakawn 1.66 3.09 3.87 5.87 6.47 7.55
55 Kanan 0.98 1.82 2.28 3.46 3.81 4.45
56 Khatla
2.20 4.09 5.13 7.77 8.56 9.99
57 Khatla East
14
58 Khatla South 1.12 2.08 2.61 3.96 4.36 5.09
Mission
59 1.56 2.90 3.63 5.50 6.06 7.08
Vengthlang
60 Bungkawn 1.63 3.04 3.80 5.76 6.35 7.41
Bungkawn
61 0.84 1.56 1.95 2.96 3.26 3.80
15 Vengthar
62 Maubawk 2.29 4.25 5.32 8.07 8.89 10.38
63 Lawipu 0.46 0.86 1.08 1.63 1.80 2.10
~ 528 ~
Annexures
__________________________________________________________________________________
64 Nursery 1.45 2.70 3.38 5.12 5.64 6.58

65 Bethlehem 1.85 3.45 4.32 6.54 7.21 8.42
Bethlehem
16 66 3.35 6.23 7.80 11.83 13.03 15.21
Vengthlang
67 College Veng 1.12 2.07 2.60 3.94 4.34 5.06
68 Venghlui 1.32 2.45 3.07 4.66 5.13 5.99
69 Republic Veng 1.20 2.23 2.80 4.24 4.67 5.46
17
70 Upper Republic 0.75 1.40 1.75 2.66 2.93 3.42
Republic
71 0.67 1.25 1.57 2.38 2.62 3.06
Vengthlang
72 Mission Veng
73 Tuikhuahtlang 2.35 4.38 5.48 8.31 9.16 10.69
74 Model Veng
75 Salem Veng 1.40 2.60 3.26 4.94 5.44 6.35
18
76 Dam Veng 0.37 0.68 0.85 1.29 1.43 1.67
77 Venghnuai 0.58 1.07 1.34 2.03 2.24 2.61
78 Thakthing 0.35 0.66 0.82 1.25 1.38 1.61
79 ITI Veng 1.23 2.29 2.87 4.35 4.79 5.59
80 Kulikawn 2.19 4.08 5.10 7.74 8.52 9.95
81 Tlangnuam
Tlangnuam 2.11 3.92 4.91 7.45 8.20 9.58
82
19 Vengthar
83 Saikhamakawn 0.55 1.02 1.28 1.94 2.14 2.50
84 Melthum 0.31 0.57 0.72 1.09 1.20 1.40
85 Hlimen 1.00 1.86 2.33 3.53 3.89 4.54
TOTAL 100.00 185.95 232.93 353.05 388.90 454.17
~ 529 ~
__________________________________________________________________________________
Annexure 9.37
(Para 9.58)
Year-wise share of Local Councils on State tax devolution under Lunglei

Municipal Council
(₹ in lakh)
Inter se share
Name of Local as per the
Name of
Sl. No. Councils within horizontal 2023-24 2024-25 2025-26
Wards
the ward devolution
criteria
1 2 3 4 5 6 7
1 Pukpui 5.51 6.03 6.64 7.75
1
2 Zotlang 5.09 5.57 6.14 7.17
3 Serkawn 4.33 4.74 5.23 6.10
2
4 Zohnuai 2.69 2.94 3.24 3.79
5 Bazar Veng 7.85 8.59 9.46 11.05
3
6 College Veng 2.52 2.76 3.04 3.55
7 Venglai 5.21 5.70 6.28 7.33
4
8 Venghlun 4.17 4.57 5.03 5.87
9 Rahsi Veng 6.07 6.65 7.33 8.56
5 10 Sazaikawn 1.02 1.11 1.23 1.43
11 Hauruang 2.09 2.29 2.52 2.94
6 12 Electric Veng 7.61 8.33 9.18 10.72
7 13 Chanmari 8.61 9.43 10.38 12.13
14 Ramthar 6.39 6.99 7.70 8.99
8
15 Farm Veng 3.20 3.50 3.86 4.50
16 Lunglawn 6.26 6.85 7.55 8.82
9
17 Salem Veng 2.76 3.02 3.33 3.89
18 Sethlun 1.63 1.78 1.96 2.29
19 Luangmual 3.07 3.36 3.70 4.32
10
20 Theiriat 3.92 4.29 4.73 5.52
21 Hrangchalkawn 1.29 1.41 1.55 1.81
22 Lungpuizawl 1.38 1.52 1.67 1.95
11 23 Zobawk 'S'
7.34 8.04 8.85 10.34
24 Zobawk 'N'
TOTAL 100.00 109.48 120.59 140.83
~ 530 ~
Annexure 9.38
(Para 9.65)
Calculation of deprivation index for Autonomous District Councils from the gap report of Mission Antyodaya 2020
Use
CSC
PDS
Banks
Project
Libraries
Harvesting
Post Office
Name of ADC
Grain Storage
Middle School
Drinking Water
Internet Facility
Primary School
All Weather Road
Public Transport
Deprivation index
Health Sub Centre
Survey completed
Panchayat Bhawan
Aanganwadi Centre
{Combined ratio/20}
Warehouse For Food

Internal Pucca Roads
No. of Villages Where

Community Rain Water
Electricity For Domestic
Combined ratio of gaps
Watershed Development
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Business Correspondent
17 18 19 20 21 22 23 24
CADC 88 11 43 77 79 86 63 61 75 80 36 81 48 87 85 81 76 68 49 72 27
~ 531 ~
Gap ratio 0.13 0.49 0.88 0.9 0.98 0.72 0.69 0.85 0.91 0.41 0.92 0.55 0.99 0.97 0.92 0.86 0.77 0.56 0.82 0.31 14.6 0.73
LADC 95 1 25 65 75 83 45 35 45 49 13 81 67 88 91 85 73 82 48 50 1
Gap ratio 0.01 0.26 0.68 0.79 0.87 0.47 0.37 0.47 0.52 0.14 0.85 0.71 0.93 0.96 0.89 0.77 0.86 0.51 0.53 0.01 11.6 0.58
MADC 93 3 30 76 72 64 50 40 29 28 3 62 29 89 87 80 59 70 6 35 3
Gap ratio 0.03 0.32 0.82 0.77 0.69 0.54 0.43 0.31 0.3 0.03 0.67 0.31 0.96 0.94 0.86 0.63 0.75 0.06 0.38 0.03 9.84 0.49
Note: The figures in Column 3 to 22 indicates the non-availability of 20 basic facilities in villages across the three ADCs based on the Mission Antyodaya Survey report; CSC-
Common Service Centres, PDS-Public Distribution System
__________________________________________________________________________________
Annexures
Annexure 10.1
(Para 10.51)
Format for expenditure and sources of revenue/capital receipts of autonomous district council
Name of District Council: _______________________________________

₹ in lakh
Expenditure Sources of Revenue Capital Receipts
Own Revenue Grants to

"Excluded
Transfers Devolution
Year Transfers Areas" not Grant-in-aid
from Central of share of Others of which
Revenue Capital Total Tax Non Tax from 15th Government covered from State Amount
State (specify) borrowings
Revenue Revenue FC under Part IX Government
through CSS taxes
& IX-A of the
~ 532 ~
Constitution
1 2 3 4 5 6 7 8 9 10 11 12 13 14
2021-22
2022-23
2023-24
2024-25
2025-26
__________________________________________________________________________________
Annexures
__________________________________________________________________________________
Annexure 10.2
(Para 10.51)
Format for own revenue receipts of autonomous district councils
Name of district council : _____________________________

(₹ in lakh)
Sl. No. Items Actuals Actuals Actuals Actuals Actuals
2021-22 2022-23 2023-24 2024-25 2025-26
1 2 3 4 5 6 7
Own Tax Revenue
i Professions Tax
ii Tax on Land Revenue
iii Tax on trade license
iv Motor Vehicles Tax

Taxes on entertainment and
v
amusement
Taxes on entry of goods into
vi
market
Tolls on passengers and goods
vii
carried in ferries
viii Taxes on animals
ix Taxes on boat
x Property tax
Any other taxes (specify the type
xi of tax and insert new row if
required)
A Sub total of Own Tax Revenue
Own Non Tax Revenue

Rents from properties of District
i
Council
Fees from other administrative
ii services including administration
of justice
iii Income from stationery receipts
iv Fees from stamps and registration
v Fees from educational services
vi Income from rural water supply

Income from other general
vii
economic services
viii Rents from fisheries
Sale of timber and other minor
ix
forest produce
Mineral concession fees, rents
x
and royalties
~ 533 ~
__________________________________________________________________________________
xi Tolls on roads
Income from road transport
xii
services
Interest receipts on loans and
xiii
advances
Any other non tax revenue
xiv receipts (Please specify and
include another row if required)
Sub Total of Own Non Tax
B
Revenue
TOTAL OF OWN REVENUE
RECEIPTS (A+B)
~ 534 ~
Annexures
__________________________________________________________________________________
Annexure 10.3
(Para 10.51)
Format for expenditure of autonomous district councils

(₹ in lakh)
Sl. Items Actuals Actuals Actuals Actuals Actuals
No.
2021-22 2022-23 2023-24 2024-25 2025-26
1 2 3 4 5 6 7
Establishment expenditure
i Salary and allowances
ii Wages/honorarium
iii Pension and other retirement benefits

Employers' contribution under New
iv
Pension Scheme
v Office expenses
vi Travelling expenses
vii Advertising and publicity

Remuneration of Members of Village
viii
Councils
ix Medical re-imbursement
x Vehicle maintenance
xi Training
xii Protocol
xiii Other charges

Any other establishment expense (please
xiv
specify if any)
Sub-total of Establishment
1
expenditure
Maintenance expenditure
i Minor works
ii Disaster management and relief
iv Maintenance of buildings
v Maintenance of infrastructure assets
vi Maintenance of other assets

Sanitation including solid waste
vii
management
Any other maintenance expenditure
viii
(please specify if any)
2 Sub-total of Maintenance expenditure
~ 535 ~
__________________________________________________________________________________
Welfare expenditure
i MDC Local Area Development Funds
ii Loans to MDCs (Retired)
iii Student Scholarship
iv Education (excluding salary of teachers)

Health (excluding salary of health care
v
workers)
vi Incentive Awards
Any other welfare expenditure (please
vii
specify if any)
3 Sub total of Welfare expenditure
Capital Expenditure
i Land
ii Buildings
iii Roads and bridges
iv Rain water harvesting
v Solid waste management
vi Works under grants from NITI Aayog

Works under grants to "Excluded Area"
vii not covered under Part IX & IX-A of the
Constitution
Viii Works under grants from RKVY
Ix Grants for creation of capital assets

Any other capital expenditure (please
x
specify if any)
4 Sub total of Capital expenditure
Any other heads of expenditure
5
(please specify)
Total (1+2+3+4+5)
~ 536 ~
Annexures
__________________________________________________________________________________
Annexure 10.4
(Para 10.51)
Format for expenditure on salary and allowances of regular employees of


(₹ in lakh)
No. of sanctioned posts Year ______
Sl. Level in the
Expenditure
No. of post
No. of post
Name of post
filled up
No pay matrix
vacant
A B C D
TOTAL
~ 537 ~
__________________________________________________________________________________
Annexure 10.5
(Para 10.51)
Format for expenditure on wages/remuneration of Contract/Muster Roll

employees under autonomous district councils

(₹ in lakh)
Name of post (Kindly No. of sanctioned posts Year ______
indicate whether the
engagement is made on
Sl.
Expenditure
No. of post
No. of post
Contract or Muster Roll Wage
filled up
No
vacant
basis or as Provisional A B C D
Employee in this Column
after the name of post)
TOTAL
~ 538 ~
Annexures
__________________________________________________________________________________
Annexure 10.6
(Para 10.51)
Format for expenditure on pensions of autonomous district councils

(₹ in lakh)
Other
Number of Family
Year Pension retirement Total
pensioners pension
benefits
2021-22
2022-23
2023-24
2024-25
2025-26
~ 539 ~
Annexure 10.7
(Para 10.51)
Format for expenditure and sources of revenue/capital receipts of municipalities
₹ in lakh
Expenditure Sources of Revenue Capital Receipts
Own Revenue Transfers Devolution

Year Grant-in-aid
Tax Revenue Transfers from Central of State Others of which
Revenue Capital Total Non Tax from 15th FC Government share of from State (specify) Amount borrowings
Property Other Government
Revenue through CSS taxes

Tax Taxes
1 2 3 4 5 6 7 8 9 10 11 12 13 14
~ 540 ~
2021-22
2022-23
2023-24
2024-25
2025-26
__________________________________________________________________________________
Annexures
__________________________________________________________________________________
Annexure 10.8
(Para 10.51)
Format for own revenue receipts of municipalities
Name of municipality : _____________________________

(₹ in lakh)
Sl. No. Items Actuals Actuals Actuals Actuals Actuals
2021-22 2022-23 2023-24 2024-25 2025-26
Own Tax Revenue
i Property Tax
ii Tax on non - motorized vehicles

Any other taxes (specify the
iii type of tax and insert new row if
required)
Sub total of Own Tax
A
Revenue
Own Non Tax Revenue
Rental income from Municipal
i
properties
ii Fees from Licensing
Fees from building permit
iii
including fines
Fees from Advertisement and
iv
hoardings
Any other type of fees (please
v
specify)
User charges (please specify
vi
the type of services)
Entry Fees including parking
vii
fees
viii Sale and hire charges
ix Dividends
x Interests
Any other non tax revenue
xi receipts (Please specify and
include another row if required)
Sub Total of Own Non Tax
B
Revenue
TOTAL OF OWN REVENUE
RECEIPTS (A+B)
~ 541 ~
__________________________________________________________________________________
Annexure 10.9
(Para 10.51)
Format for expenditure of municipalities

(₹ in lakh)
Sl. Actuals Actuals Actuals Actuals Actuals

Items
No.
2021-22 2022-23 2023-24 2024-25 2025-26
1 2 3 4 5 6 7
Establishment expenditure
Salaries ans allowances of officers and
i.
staff
ii. Remuration of Councillors/Corporators
Remuneration of Members of Local
iii.
Councils
iv. Wages of staff
v. Employees Provident Fund

Leave salary & pension contribution of
vi.
employees
vii. Retirement benefits
viii. Office maintenance
ix. Communication expenses
x. Travelling expenses
xi. Printing, stationery, periodicals, etc.
xii. Insurance, taxes, etc.
xiii. Audit fees and expenses
xiv. Legal expenses
xv. Advertising and publicity
xvi. Technical and administrative support
xvii. Medical re-imbursement
xviii. Vehicle maintenance
xix. Hiring charges
xx. Power and fuel

Any other establishment expense (please
xxi.
specify if any)
Sub-total of Establishment
1
expenditure
Maintenance expenditure
i Solid waste management
~ 542 ~
Annexures
__________________________________________________________________________________
ii Disaster management and relief
iii Street lighting
iv Maintenance of buildings
v Maintenance of infrastructure assets
vi Maintenance of other assets

Any other maintenance expenditure
vii
(please specify if any)
2 Sub-total of Maintenance expenditure
Welfare expenditure
i Promotion of public health and sanitation
ii Street vending
iii Ward assistance

Devolution of grants to Local Councils
iv
(non-salary)
Any other welfare expenditure (please
v
specify if any)
3 Sub total of Welfare expenditure
Capital Expenditure
i Land
ii Buildings
iii Roads and bridges
iv Rain water harvesting
v Solid waste management
vi Sewerage and drainage
vii Street lighting
viii Plant, machinery and equipment
ix Vehicle
x Urban transport
xi Green space and parks

Any other capital expenditure (please
xii
specify if any)
4 Sub total of Capital expenditure
Any other heads of expenditure
5
(please specify)
Total (1+2+3+4+5)
~ 543 ~
__________________________________________________________________________________
Annexure 10.10
(Para 10.51)
Format for expenditure on salary and allowances of regular employees of

municipalities

(₹ in lakh)
No. of sanctioned posts Year ______
Sl. Level in the
Expenditure
No. of post
No. of post
Name of post
filled up
No pay matrix
vacant
A B C D
TOTAL
~ 544 ~
Annexures
__________________________________________________________________________________
Annexure 10.11
(Para 10.51)
Format for expenditure on wages/remuneration of Contract/Muster Roll

employees under municipalities

(₹ in lakh)
Name of post (Kindly No. of sanctioned posts Year ______
indicate whether the
engagement is made on
Sl.
Expenditure
No. of post
No. of post
Contract or Muster Roll Wage
filled up
No
vacant
basis or as Provisional A B C D
Employee in this Column
after the name of post)
TOTAL
~ 545 ~
__________________________________________________________________________________
Annexure 10.12
(Para 10.51)
Format for receipts of Village council fund
Name of village council : _____________________________
Name of district : ____________________________________
Instruction: Centrally Sponsored Schemes te, 15thFinance Commission leh 2ndMizoram

Finance Commission atanga sum hmuh te he form ah hian ziah tel loh tur ani
(Amount in ₹)
Sl. Sum hmuhna hrang hrang Hmuh zat Hmuh zat Hmuh zat Hmuh zat Hmuh zat
No.
2021-22 2022-23 2023-24 2024-25 2025-26
1 2 3 4 5 6 7
Chhiah atanga sum hmuhna

Ran chhiah atanga sum hmuh zaa
i
sawmnga [50% of Animal tax]
Property Tax atanga sum hmuh
ii
[Collections from Property Tax]
Chhiah dang a awm chuan tarlan nise
iii
[Any other taxes]
Chhiah atanga sum hmuh
A
belhkhawm [i + ii + iii]
Chhiah nilo sum hmuhna dang
Ran vulh chhinchhiahna atanga sum
i
hmuh [Registration fee of animals]
Mizoram Animal (Control & Taxation)
Act, 2014 bawhchhia hremna atanga
sum hmuh eg. Ran vulh khung tha lo,
ii ran vulh in midang thil hlu tih chhiat,
etc. [Fines due to contravention of
Mizoram Animal (Control & Taxation)
Act, 2014]
Hnatlang a kal lo run na atanga sum
iii hmuh [Fines for absence from
Hnatlang]
Hnatlang phatna atanga sum hmuh
iv [Contribution against absence from
Hnatlang]
Kum khat lo tur thlan fel hnua lo vat
duh leh lo te hremna atanga sum
v hmuh [Fines for persons failing to
cultivate land after selection of jhum
land]
Khawtlang thil tangkaia hman turin
resolution pass a State sawrkar
vi pawmpuina nena pawisa khawn [To
raise fund for public utility within its
jurisdiction by passing a resolution
~ 546 ~
Annexures
__________________________________________________________________________________
subject to the approval of the State

Government]
Village Court in hremna a pek atanga
vii sum hmuh [Fines imposed by Village
Courts]
Khaw chhunga puipunna chi hrang
hrang buatsaihna man [Fees for
viii organising assembly or meetings for
the sake of entertainment, exhibition
or fair]
Sawrkar atanga service hrang hrang
eg Residential Certificate, Income
Certificate, etc. hmuh nan Village
Council hriatpuina pek chhuah atanga
ix
sum hmuh [Fees for issuing of VC
recommendation for availing Govt
services such as Residential
Certificate, Income Certificate, etc.]
VC in luah man/VC bungraw hman
hawh man atanga sum hmuh [Rents
x
from VC buildings or any other
properties]
Tlangau lawmman atana
thawhkhawm (Lawmman hi
thil/bungrua etc a pe an awm pawhin
xi
an pek zat hlutna pawisa a chantir
nise) [Contributions for remuneration
of Village Crier]
Bawlhhlawh paihna man
xii [Fees/contributions for disposal of
solid waste]
Central/State Scheme atanga siam
vantlang thil entirnan tui dahkhawlna,
bazar shed, tui supply, irrigation
canal, etc. hman man [User charges
xiii
for assets created under
Central/State Schemes such as water
reservoir, market shed, water supply,
irrigation canal, etc.]
Chhiah ni lo VC sum hmuhna dang
[Any other non tax revenue receipts]
xiv (Centrally Sponsored Schemes
atanga sum hmuh chhiar tel loh tur
ani)
Chhiah nilo sum hmuhna
belhkhawm [i + ii + iii + iv + v + vi +
B
vii + viii + ix + x + xi + xii + xiii +
xiv]
GRAND TOTAL [A + B]
~ 547 ~
__________________________________________________________________________________
Annexure 10.13
(Para 10.51)
Format for expenditure from Village council fund
Name of village council : _____________________________
Name of district : ____________________________________
Instruction: Centrally Sponsored Schemes te, 15thFinance Commission leh 2ndMizoram

Finance Commission atanga pawisa hmuh te hmanna he form ah hian ziah loh tur ani.
(Amount in ₹)
Sl. VC Fund hmanna hrang Hman zat Hman zat Hman zat Hman zat Hman zat
No. hrang
2021-22 2022-23 2023-24 2024-25 2025-26
1 2 3 4 5 6 7
Meilam sialna, ram kang ven
i leh thelhna [Prevention and
control of fire]
Bawlhhlawh paihna
ii
[Disposal of solid waste]
iii Zinna [Travelling expenses]
Mikhual thlenna [Hospitality
iv
expenses]
Village Council
Meeting/Gram Sabha senso
v [Expenses on meeting of
Village Council/Gram
Sabha]
Khawtlang tuilak/tui sem
vi enkawlna [Expenses on
public water supply]
Paper, pen leh stationery
vii dang leina man [Expenses
on office stationery]
Khawtlang thil eg. sikul,
tuizem, community hall,
viii internal road etc. enkawlna
[Maintenance expenditure
on community assets]
Khuarel chhiatna tuarte
ix chhawmdawlna [Relief for
victims of natural calamities]
Hripui leng avanga
x chhawmdawlna [Relief
during outbreak of epidemic]
Thlanmual enkawlna
xi [Maintenance of burial
grounds]
Khawchhunga street light
xii enkawlna [Maintenance of
street lights]
Vantlang inthiarna
xiii
buatsaihna [Provision of
~ 548 ~
Annexures
__________________________________________________________________________________
public urinals/toilet]
xiv
xv
TOTAL
~ 549 ~

Report of 2nd SFC of Mizoram

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Report of 2nd SFC of Mizoram

Uploaded by

Copyright:

Available Formats

CONTENTS

List of charts xxi-xxii

Transfers from the Centre through devolution of share of 46

Devolution of powers and functions to the Autonomous 144

Functions performed by the Autonomous District 154

Devolution of functionaries to the Autonomous District 162

Implementation of the recommendations of Union and 174

Remuneration of VC Members 178

Issues in the finances of the Village Councils 179

Projections of own source revenues 183

Projections of revenue expenditure 185

Analysis and recommendations 187

Chapter 7 Finances of Urban Local Bodies 192

Summary of revenue receipts and expenditures of the 193

Own Source Revenues : Tax and Non-Tax 196

Buoyancy of Tax & Non-Tax Revenues 201

Devolution of Funds to AMC 203

Expenditure patterns of AMC 205

Projections of own source revenues 219

Projections of revenue expenditure 220

Analysis and recommendations 222

Chapter 8 Finances of District Councils 227

Summary of budgetary positions of the District Councils 228

Transfers from the State Government to the District 230

Own Tax Revenues and Efforts 237

Own Non-Tax Revenues 247

Own Revenue Receipts 251

Measuring Revenue Efforts 254

Impact of the Finance Commissions on the District 260

Buoyancy of Own Revenues 266

Expenditure patterns of the District Councils 272

Projections of own source revenues 284

Projections of revenue expenditures 285

Analysis and recommendations 285

Chapter 9 Assessment of gaps in financial resources and scheme 293

Assessment of gaps in financial resources of local bodies 293

Composition of the divisible pool 297

Quantum of vertical devolution 298

Horizontal devolution : 1st level 304

Horizontal devolution : 2nd level (Stage 1 and 2) 306

Horizontal devolution : 3rd level (Stage 1 and 2) 314

Horizontal devolution : 4th level 321

No separate assignment of taxes, duties, tolls and fees 329

Separate heads for tax devolution and grants-in-aid in the 329

Chapter 10 General observations and other issues in the terms of 331

Disaster management at village/local level 331

Management of ecology, environment and climate change 337

Timely constitution of State Finance Commissions 346

State Finance Commission Cell in Finance Department 348

Grants for autonomous district councils from Union 349

High Level Monitoring Committee 351

Chapter 11 Summary of recommendations 352

The Second State Finance Commission of Mizoram was initially

The main tasks of the Commission are governed by the provisions in

The approach of the Commission has been to understand in depth the

The Commission did its best to do justice to the terms of reference

Thanks are also due to Pu Vanlal Chhuanga, IA&AS, Principal

The stakeholder departments viz., Local Administration, Urban

The three district councils, the municipalities and village councils

The National Informatics Centre, Aizawl readily facilitated several

The Commission believes that the recommendations contained in the

Aizawl, the 20th July, 2023 (F. VANLALRUATA)

AMC Aizawl Municipal Corporation