Question Q.5DiscussGS2GS2
The role of State Finance Commissions in building regional equity and strengthening the federal link has largely been underutilized. Discuss.
Main Body
15th Finance Commission statutory assembly needed quicker implementation of formation of State Finance Commission (SFC).
Role in building regional equity:
1Suggests reserve to augment regional growth.
2Regional-specific economic planning
3Keeps in widening of tax and fiscal base.
Role in strengthening federal link:
4Helps reduce dependence on central funds → augmenting own-source & revenue → 31/7 of state finances through caste
Has been largely underutilized:
1Irregular formation [9] only a state have formed SFC [Not FC support]
2Absence of criteria & qualification for appointments.
3Vague and broad terms of reference
4Absence of independent audit and secretariat.
5Report and recommendations of SFCs are non-binding
6Augmentation of funds, finance and functionality of 3rd tier of govt (35/F)
Has been largely underutilized:
1Irregular formation [9] only a states have formed SFC (Not FC support)
2Absence of criteria & qualification for appointments.
3Vague and broad terms of reference
4Absence of independent audit and secretariat.
5Report and recommendation of SFCs are non-binding
As recommended by 10th FC, certain grants from central template must be filed for formulation of SFC.
188 words20 paragraphs
Diagram
Diagram showing Role in building regional equity and Role in strengthening federal link as two main categories with subcategories beneath
Examiner score
0.9/10Open original scan
Page 11
Topper
ALASE HRISHIKESH RAJENDRA
AIR 612025
Subject & Paper
GS2GS2
Topic
Federal Structure - Functions, Responsibilities, Devolution of Powers and Finances
Centre-State Financial Relations
State Finance Commissions
Writing Stats
188
Total words
20
Paragraphs
analytical
Tone