Q.5) The role of State Finance Commissions in building regional equity and strengthening the federal structure has largely been underutilized. Discuss.
Main Body
73rd and 74th Constitutional Amendment led to the formation of State Finance Commissions in every state (Article 243). Role in Building Regional Equity: Transfer of Funds to local Bodies → strengthen State Finances → setting the guidelines for devolution of Funds. SFC - Strengthen Federal link: 3 levels of Govt → Centre, State, Local Bodies → Connect Union with Local governance → strengthen self-rule and governance. SFC → largely Underutilised: (1) States have not formed: only functional in ~14 states. (2) Lack of devolution of power or Mandate to State Finance Commission - [Paper bodies]
— GAURAV CHOPRA · AIR 83
Diagram
Flowchart showing roles of State Finance Commissions: Transfer of Funds to local Bodies, strengthen State Finances, setting guidelines for devolution, 3 levels of Government structure
Open original scan
Page 11
GAURAV CHOPRA
Federal Structure - Functions, Responsibilities, Devolution of Powers and Finances
Centre-State Financial Relations
State Finance Commissions and Regional Equity
152
Total words
1
Paragraphs
analytical
Tone