The State Government has constituted 1st State Finance Commission on 22nd September' 2005 vide order No. PR-75/2003.

The 1st State Finance Commission has been constituted in the year 2003 under Section 138 of the Arunachal Pradesh Panchayat Raj Act. 1997. The SFC has been re-constituted vide order No: PR- 75/2003 dated 22nd September'2005. The one man State Finance Commission headed by  Shri A.J. Tayeng, IAS (Retired) was to recommend measures for allocation of funds to Panchayat Raj Bodies, the determination of taxes, duties, tolls and grants- in-aid to Panchayat Raj Bodies etc. All aspects of devolution of financial powers to the Panchayat Raj Bodies will be vested with such powers and authority as may be necessary to enable them to function as institutions of self-government. The programmes of poverty alleviation will be under direct control of the Panchayat Raj bodies for preparation of plans, selection of beneficiaries, implementation and monitoring schemes for achieving economic development and social justice for removal of rural poverty.

The 1st State Finance Commission has submitted its reports/ recommendation to the State Government in August' 2008. But, the State Government rejected the recommendation declaring it as "UNWORKABLE".

The 2nd State Finance Commission was constituted on 23rd  August' 2012 vide order No. FIN/FC-50/2012 with the following Officers as Commission Members as below :

  • Smti. Fantry Mein Jaswal, IRS (Retired) – Chairperson
  • Secretary (Panchayati Raj) – Ex-Officio Member
  • Special Secretary (Finance) Ex-Officio Member

The 2nd State Finance Commission has submitted its reports/ recommendation to the State Government on 30th June' 2014.