Critically analyse the Fifteenth Finance Commission recommendations on local bodies, especially with respect to those relating to urban local bodies.

Topic: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein.

3. Critically analyse the Fifteenth Finance Commission recommendations on local bodies, especially with respect to those relating to urban local bodies. (250 words)

Difficulty level: Moderate.

Why the question:

The question is part of the static syllabus of General studies paper – 2 and mentioned as part of Mission-2022 Secure timetable.

Key Demand of the question:

To write about Fifteenth Finance Commission recommendations and how they impact local bodies.

Directive word:

Examine – When asked to ‘Examine’, we must investigate the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications.

Structure of the answer:

Introduction: 

Begin the giving the role of Finance Commission in fiscal augmentation of local bodies.

Body:

In the first part, in brief mention the major recommendations of 15th Finance Commission with respect to local bodies.

In the next part, mention positive aspects of the recommendations vis-à-vis 14th FC recommendations with a special emphasis on Urban Local bodies.

Next, mention the limitations of the above recommendations.

Conclusion:

Conclude with a way forward to overcome the limitations.