State PCS

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Finance Commission (Devolution Of Power)

Finance Commissions are constituted under Article 280 of the Constitution and their recommendations encompass three key areas....
  • Finance Commissions are constituted under Article 280 of the Constitution and their recommendations encompass three key areas: vertical devolution, horizontal distribution, and grant-in-aid.
  • Vertical devolution focuses on Union to state transfers
  • Horizontal distribution involves the allocation of resources between states based on a specific formula.
  • Grant-in-aid, covered under Article 275, provides financial assistance to states deemed in need.
  • It is important to note the distinction between grants and grant-in-aid, as the latter operates at arm’s length and offers more flexibility in terms of control.

Salient Features of Finance Commission of India

  • Article 280 (FC) & Article 281 (Recommendations of FC)
  • Finance Commission of India is a quasi-judicial body
  • Finance Commission of India is constituted by the president every fifth year
  • Make recommendation regarding distribution of financial resources between the Union and the States
  • Recommendations made are only of advisory nature (Not binding / nowhere laid down in the Constitution)
  • Constitution of India envisages it as balancing wheel of fiscal federalism
  • The President designates the term, occasionally reappointing members in specific cases.

Functions of the Finance Commission

  1. Authorities determine the distribution of net tax proceeds between the Centre and states, including allocation among states. The Commission decides the basis for sharing the divisible taxes by the centre and the states and the principles that govern the grants-in-aid to the states every five years.
  2. The principles governing the grants-in-aid to the states by the Centre out of the consolidated fund of India.
  3. The steps required to extend the consolidated fund of the state to boost the resources of the panchayats and the municipalities of the state on the basis of the recommendations made by the state Finance Commission.
  4. The President can refer any matter related to sound finance to the Commission for consideration.
  5. As per the Code of Civil Procedure 1908, the FC has all the powers of a Civil Court. It can call witnesses, ask for the production of a public document or record from any office or court.

Devolution of powers and finances up to local levels: Role of Women

  • Since female political representation is there, women come forward and report crimes.
  • Greater investments in drinking water, priority public goods.
  • Rural women are growing in confidence and experience while functioning as leaders of the local bodies.
  • Mobilizing rural resources and encouraging SHGs for financial security.
  • They have sensitized gender issues.
  • They play critical role in identifying the “out of the school” children and to the success of ‘mid-day meal’ programme.

Patriarchy provides the sexual hierarchical ordering of society for political control says Zillah Eisenstein (1979). It has several implications:

  • Politics as field is considered inappropriate for women, reason for shortfall in mandatory quota.
  • Male politicians believe that increase in number of women representatives would not ensure quality.
  • Reports indicate that security concerns restrict the freedom of movement for elected women representatives.
  • Most male counterparts think male members of their families make the decisions and doubt women capabilities to deliberate and take independent decisions.
  • Men outnumbering women ignore their points of view.

Read Also: Present Status Of Urban Local Bodies

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