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VANAJ VIDYANAIR 278· 2025

Question 14GS2GS2

How does the inability of local bodies to generate their own funds affect their ability to function effectively? Suggest necessary measures to empower local governments in generating independent revenue streams.

Open scan (p.32)

Main Body

The revenue generated by local bodies is merely offset & GDP, supplying the expenditure on service and state for SF - funds, functions, functionaries provisioned. 45K funds allotted from union & state. Taxes toll duties of 243-H not passed by PRF. Inability to generate funds affects the function effectively. Performance - Limited in central funds [85% as per ISWFC] have one-size fit-all approach. Best serve for Kerala & LDH not outcome achievable.

72 words1 paragraphs

Diagram

Shows inability to generate funds leading to affecting the function effectively with branching to various issues

Answer continues on next page

Topper

VANAJ VIDYAN

AIR 2782025

Subject & Paper

GS2GS2

Topic

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

Devolution to Local Levels

Local body finances and revenue generation

Writing Stats

72

Total words

1

Paragraphs

explanatory

Tone