The role of State Finance Commissions in building regional equity and strengthening the federal link has substantially underutilized. Discuss.
Main Body
73rd & 74th Amendment Act mandated formation of SFC for devolution of state funds to local self govt LSG Role of SFC in Regional Equity & Federal Link: (1) To recommend share of net proceeds to be distributed from consolidated state fund. (2) Grants for ensuring balanced regional grant. (3) Alignment across of LSG (4) Collaborate with & Finance law at Union level.
Underutilized → (1) Non appointment/formation STC → ID state durst for during duration of (374 FC. (2) Lack of independent funding. (3) Non-implementation & lack of action taken report submission. (4) Representation of local govt report is absent. (5) Limited oversight of SFC over fund disbursed & utilisation → Jndicy FC with SFC → SFC oversight over fund utilisation → CAG & SFC collaborate
— NEERAJ · AIR 180
Diagram
Diagram showing relationships between Jndicy FC with SFC, SFC oversight over fund utilisation, and CAG & SFC collaborate
NEERAJ
Federal Structure - Functions, Responsibilities, Devolution of Powers and Finances
Devolution to Local Levels
State Finance Commissions
127
Total words
1
Paragraphs
analytical
Tone