UPSC prelims MCQs CAPF NDA PSC

(D) Finance Commission constituted by the Governor • Article 243-I of the Indian Constitution mandates the establishment of a State Finance Commission to review the financial position of the Panchayats. • This commission is required to be constituted by the Governor of the respective State at the expiration of every fifth year. • The primary role of the State Finance Commission is to make recommendations to the Governor regarding the distribution of net proceeds of taxes, duties, tolls, and fees between the State and the Panchayats. • It also determines the principles that should govern the grants-in-aid given to the Panchayats from the Consolidated Fund of the State. • The Chief Minister, Chairman of the Block Committee, and Chairman of the District Council do not hold this constitutional authority for reviewing the overall financial position of the Panchayati Raj Institutions.

Local Self-Government is included under Entry 5 of the State List in the Seventh Schedule of the Constitution. This means that the State Legislatures have the power to make laws regarding the establishment, powers, functions and administration of Panchayats and Municipalities. Subjects such as village administration, municipal governance, local taxation and civic services are primarily regulated by the States. The 73rd and 74th Constitutional Amendments (1992) granted constitutional status to Panchayats and Municipalities by introducing Part IX and Part IX-A. These amendments made the existence of local bodies mandatory and provided a common constitutional framework regarding elections, reservations, tenure and finance. However, they did not transfer Local Self-Government from the State List to the Union or Concurrent List. The detailed powers and responsibilities of local bodies continue to be determined by State laws. Thus, while the Constitution ensures a uniform framework for local governance, the actual legislative authority remains with the States. Therefore, Local Self-Government falls under the State List

(B) 1 - a, 2 - b, 3 - d, 4 - c 1. Compulsory Provisions \rightarrow (a) Voting rights of the chairperson and other members Under Article 243C of the 73rd Constitutional Amendment Act: All members of Panchayats at the village, intermediate, and district levels are elected directly by the people. The chairperson and all members (whether elected directly or indirectly) have the right to vote in the meetings of the Panchayats. This voting right is a mandatory/compulsory constitutional provision. 2. Voluntary Provisions \rightarrow (b) Making the Grants-in-aid to the Panchayats from Consolidated Fund of State Under Article 243H, providing for grants-in-aid to Panchayats from the Consolidated Fund of the State is left to the discretion/volition of the State Legislature. State laws may authorize Panchayats to levy taxes, assign taxes to them, or provide grants-in-aid, making it a voluntary provision. 3. R. R. Diwakar Committee (1963) \rightarrow (d) Study team on the position of Gram Sabha Set up in 1963, the Study Team on the Position of Gram Sabha in Panchayati Raj Movement was headed by R. R. Diwakar. It evaluated the role, powers, and operational effectiveness of Gram Sabhas in local self-governance. 4. K. Santhanam Committee (1965) \rightarrow (c) Committee on Panchayat Raj Elections Set up in 1965, the Committee on Panchayati Raj Elections was chaired by K. Santhanam. (Note: K. Santhanam also chaired the 1963 Study Team on Panchayati Raj Finance).