Question 4GS2GS2
Recognizing the pivotal role of urbanization as a driver of national economic growth, the Fifteenth Finance Commission has suggested major reforms for Urban Local Bodies. Evaluate the role of the Fifteenth Finance Commission in promoting and revitalizing ULBs in India.
Main Body
15th Finance Commission under Article 280 in guidance of Mr N.K. Singh gave several recommendations including for grants to ULBs. (1) Tied GrantsThese grants to be provided only if ULBs take recommendations of 15th Finance Commission and states make devolution (2) Untied Grantsthese grants to be provided irrespectively to ULBs. However their quantum is reduced. (3) General recommendations that state finance commissions should be setup in time
Revitalize ULBs Positives - It will nudge the state governments towards referring the ULBs which play important role in localization of SDGs - It will bring more devolution of funds, functions & functionaries (3F noted by Ayyar committee) Negatives - It will make ULBs dependent on state government - Their own source of revenue is already low (RBJ repeal) and has add fiscal pressure Overall measure is positive but it's not sufficient as there is need for holistic reforms as noted by our APC.
155 words1 paragraphs
Topper
Shoham Teberiwal
AIR 772023
Subject & Paper
GS2GS2
Topic
Federal Structure - Functions, Responsibilities, Devolution of Powers and Finances
Local Self Government
Urban Local Bodies and Finance Commission
Writing Stats
155
Total words
1
Paragraphs
formal
Tone