The role of State Finance Commissions in building regional equity and strengthening the federal link has largely been underutimized. Discuss.

*Problems/Inadequacy/Underutilization of Role of State Finance Commission: 1) Non constituted by state in periodic manner. manytimes state skip to constitute SFC. 2) Advisory Nature: SFC-recommendations are advisory. Manytime not implemented by state. 3) No concrete role played by it to build regional equity - i.e urban-rural equity, urban-urban equity. 4) Generally urban areas having large population gains more. 5) Local bodies are still highly dependent. 80% funding from Central & state share. State political will to strengthen local bodies are still largely under developed. Strengthening SFC may be helpful to increase role of local bodies.