The role of State Finance Commissions in building regional equity and strengthening the federal structure in the constitution has largely been unutilized. Discuss.
Introduction
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Main Body
State Finance Commission in constitutional body under article 243Y, formed to strengthen financial position of local bodies.
However its functions have been under-utilized because:
1. Insufficient formation → delay in forming by state
eg: Read upon predation
2. Some states do not form SFC
eg: west Bengal
3. All recommendatory forms. → ignored by states
4. Lack of staff personnel capacity
5. Dependency given law for funding.
Many However it has been contributing as:
1. Equitable devolution of funds towards PRE
2. Now to some extent
These is serious deficiency in furthering of state finance commission, it must be made an independent body affiliated to other financial institutions & strengthen federal link.
— DEEKSHA PATKAR · AIR 88
Conclusion
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DEEKSHA PATKAR
Federal Structure - Functions, Responsibilities, Devolution of Powers and Finances
Centre-State Financial Relations
State Finance Commissions and regional equity
155
Total words
6
Paragraphs
analytical
Tone