Madhavi RAIR 446 · CSE 2024 · 202 wordsTheir whole copy
Opening · a constitutional or legal provision
Article 280 of the constitution deals with the Finance commission, a Quasi Judicial body, to deal with the financial matters between centre and state.
Body · points
the Role of Finance commission:
(1) It recommends the devolution of financial powers between the centre and state.
- It was gradually increasing to 42% from 2001-2017.
- According to 15th Finance commission the vertical devolution has been decreased from 42% to 41%. This is between centre and states.
(2) Between States the devolution to be determined by considering various factors.
- Forest cover
- Demographic performance
- Non tax revenue
- Geographical area etc Recently : additional aid was announced depending on the implementation of ONOR (one nation one ration card)
(3) Grants in aids to the States to develop local bodies
- Resources for Disaster management.
- Capacity and infrastructure building of local bodies in rural and urban areas
Challenges:
→ Recommendations of Finance commission are only advisory in nature. → Issues with the factors of determination for horizontal devolution. → More preference to Rural local bodies than Urban ones (Inequality).
Close · a summary
As Finance commission is considered as the Federal wheel of the constitution, it is very much necessary to maintain the stable centre-state relations.
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