Which of the following authorities makes recommendation to the governo...
Article 243I of the Indian Constitution prescribes that the Governor of a State shall, as soon as may be within one year from the commencement of the Constitution (Seventy-third Amendment) Act, 1992, and thereafter at the expiration of every fifth year, constitute a Finance Commission to review the financial position of the Panchayats. Article 243Y of the Constitution further provides that the Finance Commission constituted under Article 243 I shall make similar recommendation vis-a-vis municipalities.
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Which of the following authorities makes recommendation to the governo...
The correct answer is option 'B', the State Finance Commission.
Here is the detailed explanation:
1. Introduction:
The State Finance Commission is the authority that makes recommendations to the governor of a state regarding the principles for determining the taxes and duties that may be appropriated by the panchayats in that particular state.
2. Role of the State Finance Commission:
The State Finance Commission is a constitutional body that is established to review the financial position of the panchayats and make recommendations on various financial matters. Its main role is to ensure financial autonomy and adequate resources for the panchayats.
3. Constitutionally mandated:
The State Finance Commission is constitutionally mandated by Article 243-I of the Indian Constitution. It is set up every five years or as recommended by the Governor, to review the financial position of the panchayats and make recommendations on matters related to:
- The distribution between the state and panchayats of the net proceeds of taxes, duties, tolls, and fees leviable by the state.
- Determining the taxes, duties, tolls, and fees that may be assigned to or appropriated by the panchayats.
- Grants-in-aid to the panchayats from the Consolidated Fund of the State.
- Measures needed to improve the financial position of the panchayats.
4. Key functions of the State Finance Commission:
The State Finance Commission performs various functions, including:
- To examine the financial position of the panchayats.
- To review the taxation powers and financial resources of the panchayats.
- To make recommendations on the distribution of financial resources between the state government and the panchayats.
- To determine the principles for determining the taxes and duties that may be appropriated by the panchayats.
- To make recommendations on the grants-in-aid to the panchayats from the state government.
- To suggest measures to improve the financial position of the panchayats.
5. Conclusion:
In summary, the State Finance Commission is the authority that makes recommendations to the governor of a state regarding the principles for determining the taxes and duties that may be appropriated by the panchayats. It plays a crucial role in ensuring financial autonomy and adequate resources for the panchayats, thereby promoting decentralization and local self-governance.
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