Mechanisms for devolution of funds to Local self-government from the Fifteenth Finance Commission could catalyse accountability and effective governance at the grassroots. Discuss
Refer - The Indian Express
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IAS Parliament 4 years
KEY POINTS
· The Fifteenth Finance Commission (FFC) has recommended grants of Rs 4,36,361 crore from the Union government to local governments for 2021-26.
· This is an increase of 52 per cent over the corresponding grant its predecessor for 2015-20.
· The allocations for the incubation of new cities and shared municipal services are designed to foster innovations in urban governance to transform our cities with speed and scale.
· Inter distribution among states, of grants for all local governments with 90 per cent weightage on population and 10 per cent on area remains unchanged from the Fourteenth Finance Commission.
· The three tiers in the panchayats are parts of one system and interlinked through backward and forward linkages. Funds to all three can improve functional coordination and facilitate the creation of assets collectively across smaller jurisdictions.
· Similarly, for urban local bodies, the FFC grants cover cantonment boards also. This is the second new aspect of the FFC recommendations.
· For the urban component of local governments, the FFC calls for a focus on urban agglomerations (UAs) that include urban local bodies, census towns and outgrowths.
· This focus on metropolitan governance through substantive but 100 per cent outcome-based grants is the third innovation.
· For ULBs other than the million-plus category, the total grants are Rs 82,859 crore. Thirty per cent is earmarked for drinking water, rainwater harvesting and water recycling.
· Through a partnership among the Union, states, and local governments, in the spirit of cooperative federalism, these recommendations and innovations will catalyse progress in India.
Dev 4 years
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IAS Parliament 4 years
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Priya Verma 4 years
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IAS Parliament 4 years
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