GC

GAURAV CHOPRAAIR 83· 2025

Question Q.5GS2GS2

Q.5) The role of State Finance Commissions in building regional equity and strengthening the federal structure has largely been underutilized. Discuss.

Open scan (p.11)

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]

3Role is merely advisory → cannot enforce order - ignored orders. (4) lack of proper infrastructure, own Secretariat. (5) Independence issues → headed by Bureaucrat and govt servants. To increase their effectiveness: (1) Constitutional amendment → strengthen SFC by giving constitutional power. (2) Institutionalise Action Taken Report as SFC's advise. Above steps will fulfil the SFC's mandate

— GAURAV CHOPRA · AIR 83

152 words1 paragraphs

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

Examiner score
0.9/10

Open original scan

Page 11

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GAURAV CHOPRA

AIR 832025

Subject & Paper

GS2GS2

Topic

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

Centre-State Financial Relations

State Finance Commissions and Regional Equity

Writing Stats

152

Total words

1

Paragraphs

analytical

Tone