Question Q.5GS2GS2
Q.5) The role of State Finance Commissions in building regional equity and strengthening the federal structure has largely been underutilized. Discuss.
Main Body
73rd and 74th Constitutional Amendment led to the formation of State Finance Commissions in every state (Article 243). Role in Building Regional Equity: Transfer of Funds to local Bodiesstrengthen State Financessetting the guidelines for devolution of Funds. SFC - Strengthen Federal link: 3 levels of GovtCentre, State, Local BodiesConnect Union with Local governancestrengthen self-rule and governance. SFClargely Underutilised: (1) States have not formed: only functional in ~14 states. (2) Lack of devolution of power or Mandate to State Finance Commission - [Paper bodies]
3Role is merely advisory → cannot enforce order - ignored orders. (4) lack of proper infrastructure, own Secretariat. (5) Independence issues → headed by Bureaucrat and govt servants. To increase their effectiveness: (1) Constitutional amendment → strengthen SFC by giving constitutional power. (2) Institutionalise Action Taken Report as SFC's advise. Above steps will fulfil the SFC's mandate
152 words1 paragraphs
Diagram
Flowchart showing roles of State Finance Commissions: Transfer of Funds to local Bodies, strengthen State Finances, setting guidelines for devolution, 3 levels of Government structure
Examiner score
0.9/10Open original scan
Page 11
Topper
GAURAV CHOPRA
AIR 832025
Subject & Paper
GS2GS2
Topic
Federal Structure - Functions, Responsibilities, Devolution of Powers and Finances
Centre-State Financial Relations
State Finance Commissions and Regional Equity
Writing Stats
152
Total words
1
Paragraphs
analytical
Tone