Question 2State and suggestGS2GS2

Stating the sources of finance for local self-governments in India, suggest ways to strengthen their financial position.

Main Body

The 73rd & 74th amendment act, 1992 gave constitutional status to local self government. It was based on principles of democratic decentralisation for empowerment of people at grassroot (Part IX, IXA). Sources of finance for local self government: (1) Devolution of grants-in-aid by states (2) The state's delineate the taxes, taxes of fees to be appropriated by local government (& property tax) Above 2 forms are done on recommendation of state finance commission. (3) Finance commission (Art-219) also give centre suggestions to augment council for fund of state to increase devolution to local government.

4Various municipal bodies earn by monetising services, assets as (osmc, mumbai). However, local bodies lack funds causing uneven on their functions given in XI & XII schedule measures to take— (1) Promote self-reliance but efficient collection of designated taxes (2) property tax (3) NITI Aayog proposed municipal bonds (3) Vasoj Pelsak proposes. Allow of advanced both local government. (4) Reduce proportion of used-female (max 10% funds) tied to give autonomy & possibility to local bodies. (5) Collaborate with banks to get female credit. Local self governments are necessary to include finance into political system & eventual upliftment.

192 words1 paragraphs

Conclusion

Local self governments are necessary to include finance into political system & eventual upliftment.

14 words

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Page 3

Topper

PRIYANKA CHOUDHARY

AIR 792022

Subject & Paper

GS2GS2

Topic

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

Devolution to Local Levels

Local Self-Government Financing

Writing Stats

206

Total words

Paragraphs

analytical

Tone