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NEERAJAIR 180· 2025

Question 4.5GS2GS2

The role of State Finance Commissions in building regional equity and strengthening the federal link has substantially underutilized. Discuss.

Open scan (p.11)

Main Body

73rd & 74th Amendment Act mandated formation of SFC for devolution of state funds to local self govt LSG Role of SFC in Regional Equity & Federal Link: (1) To recommend share of net proceeds to be distributed from consolidated state fund. (2) Grants for ensuring balanced regional grant. (3) Alignment across of LSG (4) Collaborate with & Finance law at Union level.

Underutilized(1) Non appointment/formation STCID state durst for during duration of (374 FC. (2) Lack of independent funding. (3) Non-implementation & lack of action taken report submission. (4) Representation of local govt report is absent. (5) Limited oversight of SFC over fund disbursed & utilisationJndicy FC with SFCSFC oversight over fund utilisationCAG & SFC collaborate
127 words1 paragraphs

Diagram

Diagram showing relationships between Jndicy FC with SFC, SFC oversight over fund utilisation, and CAG & SFC collaborate

Topper

NEERAJ

AIR 1802025

Subject & Paper

GS2GS2

Topic

Federal Structure - Functions, Responsibilities, Devolution of Powers and Finances

Devolution to Local Levels

State Finance Commissions

Writing Stats

127

Total words

1

Paragraphs

analytical

Tone