The report of the fifteenth finance commission could fundamentally transform the governance of Indian municipalities. Explain (200 Words)
Refer - The Indian Express
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IAS Parliament 4 years
KEY POINTS
· Fifteenth Finance Commission has significantly raised the bar on financial governance of India’s municipalities in the interim report in at least four specific ways.
· In its interim report has tried to significantly increase the overall outlay for municipalities. It has set aside Rs 29,000 crore for FY 2020-21 and indicated the intent to raise the share of municipalities in the total grants’ of local bodies (including panchayats).
· Publication of audited annual accounts and notification of floor rates for property tax. These two entry conditions lay strong foundations for financial accountability of municipalities and own revenue enhancement respectively.
· There is also a thrust on municipal bonds and municipal finance reform conditions under AMRUT.
· The Fifteenth Finance Commission has now provided for 100 per cent outcome-based funding of approximately Rs 9,000 crore to 50 million-plus urban agglomerations (excluding Union Territories) with specific emphasis on air quality, water supply and sanitation.
· Recommendation for a common digital platform for municipal accounts, a consolidated view of municipal finances.
· The complex political economy around devolution of funds from state governments to municipalities should further strengthen rather than deter the advocacy for it.
Dev 4 years
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IAS Parliament 4 years
Good attempt. Keep Writing.
