State Finance Commissions (SFCs) are a great opportunity to build regional equity, but it is been undermined by not providing the necessary environment. Analyse. (200 words)
Refer – The Hindu
Enrich the answer from other sources, if the question demands.
IAS Parliament 6 years
KEY POINTS
Importance of SFC
· While the UFC is tasked with rectifying vertical and horizontal imbalances at the Union-State level, the SFCs are tasked with the same with reference to State/sub-State-level institutions.
· Its primary task is to rectify growing horizontal imbalances in the delivery of essential public services to citizens.
· By implication, an SFC is the institutional agency to implement the golden rule of cooperative federalism that every citizen should be assured minimum public goods irrespective of her choice of residence.
· It is only when inter-State disparities are reduced by the UFCs through their inter-se distribution criteria and intra-State disparities are reduced by SFCs through the horizontal distribution criteria that the Indian federation becomes a sustainable and inclusive nation-state.
How it is been undermined?
· SFCs are seen to be of inferior constitutional status than the UFC.
· Several sufficient conditions remain unfulfilled in the case of SFCs.
· For example, the financial reporting system of the Union and States is well laid down.
· Contrarily, local governments with no proper budgetary system are in deep disarray and, because of that, SFCs face a crucial problem of reliable data.
· The seriousness, regularity, acceptance of UFC recommendations and their implementation are conspicuously absent when it comes to SFCs.
· The SFCs' compositions are largely of serving and/or retired bureaucrats rather than academics.
Tapasvi 6 years
Kindly review
IAS Parliament 6 years
Introduction part is good. Prioritize points. Conclusion could have been better. Overall, a good attempt. Keep writing.
