Business Standard

What's rendering state Finance Commissions so ineffective and toothless?

While the 13th Finance Commission gave a template for preparing the reports of SFCs, it was not acted upon because these are not mandatory recommendations

The Centre’s net borrowing target for FY23 is Rs 11.58 trillion and gross borrowing target is Rs 14.95 trillion.
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Arup Roychoudhury New Delhi
It is so commonplace now that you, as a consumer of news, won’t even pay it a second notice. Protests by municipal and sanitation workers, and teachers in rural areas, among others for unpaid or much-delayed salaries happen nearly every month in some part of the country or another.

These are just some examples of how any disruption in the flow of funds to local bodies like panchayats and municipalities can impact third-tier governance and administration. And at the heart of the subject are state Finance Commissions (SFCs).

According to the 15th Finance Commission and studies conducted by think tanks,

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First Published: Sep 27 2022 | 9:49 AM IST

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