Topic: devolution of powers and finances up to local levels and challenges therein.
3. The health of municipal finances is a critical element of municipal governance which will determine whether India realises her economic and developmental promise under the 74th Constitution Amendment Act. Examine. (250 words).
Difficulty level: Tough
Reference: The Hindu
Why the question: Recently, the Indian Institute for Human Settlements (IIHS) analysed data from 80 ULBs across 24 States between 2012-13 and 2016-17 to understand ULB finance and spending, and found some key trends.
Key Demand of the question: To write about role of municipal finance in achieving economic and developmental goals of Urban 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:
Start by briefly mentioning aims and objectives of 74th Constitution Amendment Act.
Body:
First, write about the various aspects of finances as mandate by the 74th Constitution Amendment Act.
Next, write about the various challenges in securing and ensuring availability of funds to the ULBs. Write about tis impact.
Next, suggest ways to overcome them and ensure availability of finances with ULBs.
Conclusion:
Conclude by writing a way forward.
