Why are Finance Commission grants to cities still so limited?
GS3अर्थव्यवस्था · विज्ञान-तकनीक · पर्यावरण · सुरक्षा· Fiscal policy, budget & taxation (GST)· Mains·
चर्चा में क्यों
The 16th Finance Commission's recommendations for urban local bodies (ULBs) have sparked debate over limited fund devolution and the exclusion of certain cess revenues from the sharing formula.
पृष्ठभूमि
The 16th Finance Commission recommends that cities increase revenue through property taxes and user charges. It faces criticism for stringent performance-based grants and for excluding the impact of peri-urban mergers and Central-collected cess revenues from its formula.
प्रीलिम्स के लिए तथ्य
- संस्थाFinance Commission: A constitutional body that recommends the distribution of net proceeds of taxes between the Union and the States.
- तथ्यThe 16th Finance Commission recommends increased urban local body revenue generation through property taxes and user charges.
- तथ्यThe current revenue sharing formula excludes the pool of cess revenues collected by the Centre.
मेन्स के लिए
Q. Critically analyze the limitations of the current Finance Commission devolution formula in supporting the fiscal autonomy and infrastructure needs of rapidly expanding Indian cities.
उत्तर के आयाम
- Fiscal autonomy vs. Performance-based grants: Balancing municipal freedom with stringent central-mandated performance metrics.
- Revenue exclusion: Impact of excluding Central-collected cess and peri-urban merger complexities from the urban devolution formula.
- Horizontal inequity: Challenges in balancing property tax-based revenue generation with the varying fiscal capacities of different urban centers.
कीवर्ड: Fiscal Federalism · Urban Local Bodies · Devolution · Revenue Sharing Formula · Fiscal Autonomy · Peri-urbanization
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यह नोट सत्यधीश के समाचार फ़ीड से स्वचालित रूप से तैयार किया गया है और यूपीएससी सीएसई पाठ्यक्रम से जुड़ा है। उत्तर में उपयोग करने से पहले तथ्यों का मूल रिपोर्ट या पीआईबी से मिलान करें।