Finance Commission (Article 280):
Introduction
Functions:
Role of Finance Commission |
Example |
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Composition:
Membership qualifications as per the constitution:
Significance
Key Recommendation of the 14th Finance Commission:
Key Recommendations of the 15th Finance Commission:
Criticism of the 15th Finance Commission:
Comparative analysis of the 14th and 15th Finance Commission with reference to Municipal Governance:
Parameters |
14th Finance Commission |
15th Finance Commission |
Increment of funds to cities |
Local governments received 4.31 percent of the distributable pool from the 14th FC, of which 30% were given to municipalities. |
Local governments received 4.15 percent of the divisible pool from the 15th FC, of which 40% were given to municipalities. |
Metropolitan Governance |
About 20% of the 14th FC's allotments were designated as performance grants. These funds were contingent upon increased income, audited financial statements, and the publication of service-level standards. |
The 15th FC has rewarded the metropolitan government by tying 100% of financing to results. |
Transparency in Municipal finances |
It maintained much-needed policy consistency but did not always result in better data or more openness. The 14th FC had made the disclosure of service level benchmarks a requirement for performance grants. |
The 15th FC has also stressed the necessity of digitizing municipal accounting and of having a comprehensive understanding of the finances of the municipal sector at the state and union levels. |
Conclusion
The Finance Commission has performed a valuable purpose and met a big demand as an independent entity. It served as a specialist in cooperative energy for the efficient operation of a federal system in a difficult and complicated country like India.