• New Batch: 23 July , 2024

July 3, 2024

Daily Legal Current- 3 July 2024 :


Why in News?  The 16th finance commission  has started looking at the roles & functioning of FC during its tenure.

Agenda for the 16th Finance Commission:

  • Cities as Engines of Growth: Cities contribute around 66% of India’s GDP and about 90% of total government revenues.
  • Urban areas are crucial spatial zones for national development, requiring substantial infrastructure investments.
  • Challenges in Financial Devolution: Despite efforts of multiple finance commissions, financial devolution to cities remains inadequate.
  • Intergovernmental transfers to Urban Local Bodies (ULBs) in India are significantly lower compared to other developing nations.

Impact of Taxation System: Introduction of GST has reduced ULBs’ tax revenue, posing challenges to their financial health.

Low State Transfers: State transfers to ULBs recommended by State Finance Commissions have been minimal, hindering financial empowerment post-74th amendment.

Growth of Parallel Agencies: Parallel agencies and schemes have weakened local governments both financially and operationally. Programs like MPLADS and MLALADS distort the intended roles of local governments in the federal structure.



Importance of Census Data:

  • Accurate population figures are crucial for effective resource allocation and planning for urban areas.
  • Revisiting Financial Commission Principles: The 15th Finance Commission’s principles require adjustment to reflect current urbanization dynamics and infrastructure needs.
  • Doubling IGTs to urban areas is essential to meet future urban infrastructure demands.

Local Bodies and Constitutional Amendments:

  • Since the 73rd and 74th constitutional amendments, local bodies have gained significant recognition within the federal system.
  • Financial Mandate: Amendments introduced clauses mandating the Finance Commission to recommend measures supporting panchayats and municipalities from State funds (sub-clauses 280(3)(bb) and (c)).


Get In Touch

B-36, Sector-C Aliganj – Near Aliganj Post Office Lucknow – 226024 (U.P.) India

+91 8858209990, +91 9415011892

lucknowvaidsics@gmail.com / drpmtripathi.lucknow@gmail.com

Reach Us
Our Location

Google Play

About Us

VAIDS ICS Lucknow, a leading Consultancy for Civil Services & Judicial Services, was started in 1988 to provide expert guidance, consultancy, and counseling to aspirants for a career in Civil Services & Judicial Services.

The Civil Services (including the PCS) and the PCS (J) attract some of the best talented young persons in our country. The sheer diversity of work and it’s nature, the opportunity to serve the country and be directly involved in nation-building, makes the bureaucracy the envy of both-the serious and the adventurous. Its multi-tiered (Prelims, Mains & Interview) examination is one of the most stringent selection procedures. VAID’S ICS Lucknow, from its inception, has concentrated on the requirements of the civil services aspirants. The Institute expects, and helps in single-minded dedication and preparation.

© 2023, VAID ICS. All rights reserved. Designed by SoftFixer.com