18 July, 2020
6 Min Read
Aid for Rural Local Bodies-Finance commission
Paper-2 Governance (Mains)
It is a constitutional body, that determines the method and formula for distributing the tax proceeds between the Centre and states and among the states as per the constitutional arrangement and present requirements. Under Article 280 of the Constitution, the President of India is required to constitute a Finance Commission at an interval of five years or earlier.
The 1st FC was set up in 1951 and there have been fifteen so far. The 15th FC headed by N.K. Singh was constituted by the President of India on 27th November 2017, against the backdrop of the abolition of the Planning Commission and the introduction of the Goods and Services Tax (GST). In November 2019, the Union Cabinet approved the 15th FC to submit its first report for the first fiscal year 2020-21 and to extend its tenure to provide for the presentation of the final report covering Financial Years 2021-22 to 2025-26 by 30th October, 2020.
Recently, the Ministry of Finance has released a part of grants-in-aid of Rs. 15187.50 crore for around 2.63 lakh Rural Local Bodies (RLBs) of 28 States.
This has been made on the recommendations of the Ministry of Panchayati Raj and the Department of Drinking Water and Sanitation, Ministry of Jal Shakti.
This forms part of the Tied Grant as recommended by the 15th Finance Commission (FC) for the Financial Year (FY) 2020-2021.
Tied Grants: These are used for the basic services of:
Distribution: The State Governments will be distributing the grants to all the tiers of of the Panchayati Raj -village, block and district including the traditional bodies of 5th and 6th Schedule areas based on the accepted recommendations of the latest State Finance Commission (SFC) and in conformity with the recommendations of the 15th FC.
Assistance: The Ministry of Panchayati Raj would support the states in effective utilization of the grants by providing Web/IT enabled platforms for planning, monitoring, accounting / auditing of the works and funds flow at the level of each of the RLBs.
Same-sex Marriage under the Special Marriage Act, 1954 In response to a petition filed by two gay couples seeking recognition of same-sex marriage under the Special Marriage Act of 1954, the Supreme Court has served notice to the Indian Government and Attorney General. A two-judge panel led by Chief Justice of India D Y Chandrachud issued t
Periodic Labour Force Survey 2022 The Periodic Labour Force Survey (PLFS) was just released by the National Statistical Office (NSO). In metropolitan areas, the unemployment rate decreased from 9.8% in July-September 2021 to 7.2% in July-September 2022. What are the main conclusions of the PLFS (July–September 2022)? Unemp
CITES COP19 The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) is holding its 19th Conference of the Parties (CoP19) meeting in Panama City. A second name for CoP19 is the World Wildlife Conference. What were the Conference's High Points? 52 suggestions that would change the laws gover
Prevention of Cruelty to Animal Act The Union Government recently proposed 61 amendments to the Prevention of Cruelty to Animals Act 1960. More on the news The Ministry of Fisheries, Animal Husbandry, and Dairy has prepared the draught Prevention of Cruelty to Animals Act, (Amendment) Bill-2022. The following are the draft's ke
Dispute on the Assam-Meghalaya Border The killing of six people in an Assam police shooting comes ahead of the second phase of talks between the two states to resolve their boundary dispute, and there are fears that it will cast a long shadow over the talks. Background During the British colonial era, undivided Assam included moder
Copyright© Aspire IAS Academy. All rights reserved. Powered by CLT Technologies & Edu-Publishers Private Limited.