{"id":27541,"date":"2024-02-16T05:51:16","date_gmt":"2024-02-16T05:51:16","guid":{"rendered":"https:\/\/edukemy.com\/blog\/?p=27541"},"modified":"2024-02-16T05:51:19","modified_gmt":"2024-02-16T05:51:19","slug":"discuss-the-recommendations-of-the-13th-finance-commission-which-have-been-a-departure-from-the-previous-commissions-for-strengthening-the-local-government-finances-200-words-10-marks","status":"publish","type":"post","link":"https:\/\/edukemy.com\/blog\/discuss-the-recommendations-of-the-13th-finance-commission-which-have-been-a-departure-from-the-previous-commissions-for-strengthening-the-local-government-finances-200-words-10-marks\/","title":{"rendered":"Discuss the recommendations of the 13th Finance Commission which have been a departure from the previous commissions for strengthening the local government finances. (200 words, 10 marks)"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-gs-advance-and-mentorship-program-ampcsat?utm_source=Blog&amp;utm_medium=Link&amp;utm_campaign=GS+Advanced\" target=\"_blank\" rel=\"noreferrer noopener\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1280\" height=\"300\" src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/07\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-8.png\" alt=\"\" class=\"wp-image-43397\" srcset=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/07\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-8.png 1280w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/07\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-8-1170x274.png 1170w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/07\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-8-585x137.png 585w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/a><\/figure><\/div>\n\n\n<p>The recommendations put forth by the 13th Finance Commission mark a significant departure from its predecessors in their approach towards bolstering local government finances. Unlike prior commissions, the 13th Finance Commission emphasized a more decentralized approach, recognizing the pivotal role played by local governments in fostering sustainable development at the grassroots level. One of its key recommendations involved substantially increasing the share of central taxes allocated to states, thereby enhancing the fiscal capacity of local bodies. Moreover, the commission advocated for greater autonomy and flexibility in fund utilization, empowering local governments to tailor their spending priorities according to regional needs. Additionally, it introduced performance-based incentives aimed at encouraging fiscal discipline and efficiency at the local level. This departure from traditional top-down fiscal planning underscores a paradigm shift towards empowering local authorities and promoting bottom-up governance. By prioritizing fiscal decentralization and incentivizing local fiscal responsibility, the recommendations of the 13th Finance Commission pave the way for a more inclusive and sustainable approach to strengthening local government finances, thus facilitating equitable development across the nation.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><strong>Tag: <\/strong>Governance.\u00a0\u00a0\u00a0<\/p><\/blockquote>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-69d3872f011a4\" class=\"ez-toc-cssicon-toggle-label\"><p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-cssicon\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d3872f011a4\"  \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/edukemy.com\/blog\/discuss-the-recommendations-of-the-13th-finance-commission-which-have-been-a-departure-from-the-previous-commissions-for-strengthening-the-local-government-finances-200-words-10-marks\/#Decoding_the_Question\" title=\"Decoding the Question:&nbsp;&nbsp;\">Decoding the Question:&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/edukemy.com\/blog\/discuss-the-recommendations-of-the-13th-finance-commission-which-have-been-a-departure-from-the-previous-commissions-for-strengthening-the-local-government-finances-200-words-10-marks\/#Answer\" title=\"Answer:&nbsp;&nbsp;&nbsp;\">Answer:&nbsp;&nbsp;&nbsp;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/edukemy.com\/blog\/discuss-the-recommendations-of-the-13th-finance-commission-which-have-been-a-departure-from-the-previous-commissions-for-strengthening-the-local-government-finances-200-words-10-marks\/#13th_Finance_Commission_and_its_Departure_from_the_Recommendations_of_Previous_Commissions\" title=\"13th Finance Commission and its Departure from the Recommendations of Previous Commissions:&nbsp;&nbsp;\">13th Finance Commission and its Departure from the Recommendations of Previous Commissions:&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/edukemy.com\/blog\/discuss-the-recommendations-of-the-13th-finance-commission-which-have-been-a-departure-from-the-previous-commissions-for-strengthening-the-local-government-finances-200-words-10-marks\/#Recommendations_of_13th_FC_Strengthen_Local_Government_Finances\" title=\"Recommendations of 13th FC Strengthen Local Government Finances:&nbsp;&nbsp;\">Recommendations of 13th FC Strengthen Local Government Finances:&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/edukemy.com\/blog\/discuss-the-recommendations-of-the-13th-finance-commission-which-have-been-a-departure-from-the-previous-commissions-for-strengthening-the-local-government-finances-200-words-10-marks\/#Concerns_with_Recommendations_of_13th_FC\" title=\"Concerns with Recommendations of 13th FC:&nbsp;&nbsp;\">Concerns with Recommendations of 13th FC:&nbsp;&nbsp;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/edukemy.com\/blog\/discuss-the-recommendations-of-the-13th-finance-commission-which-have-been-a-departure-from-the-previous-commissions-for-strengthening-the-local-government-finances-200-words-10-marks\/#In_case_you_still_have_your_doubts_contact_us_on_9811333901\" title=\"In case you still have your doubts, contact us on 9811333901.&nbsp;\">In case you still have your doubts, contact us on 9811333901.&nbsp;<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/edukemy.com\/blog\/discuss-the-recommendations-of-the-13th-finance-commission-which-have-been-a-departure-from-the-previous-commissions-for-strengthening-the-local-government-finances-200-words-10-marks\/#Visit_our_YouTube_Channel_%E2%80%93_here\" title=\"Visit our YouTube Channel &#8211;&nbsp;here\">Visit our YouTube Channel &#8211;&nbsp;here<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Decoding_the_Question\"><\/span><strong>Decoding the Question:<\/strong>&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>In Introduction, try to briefly write about the Finance Commission.\u00a0<\/strong>\u00a0\u00a0<\/li><li><strong>In Body,\u00a0<\/strong>\u00a0\u00a0<\/li><li><strong>Write about the 13<sup>th<\/sup> Finance Commission.\u00a0<\/strong>\u00a0\u00a0<\/li><li><strong>Mention how its recommendations have been a departure from the previous commissions for strengthening the local government finances.\u00a0<\/strong>\u00a0\u00a0<\/li><li><strong>Write the concerns of the recommendations given.<\/strong>\u00a0\u00a0<\/li><li><strong>In Conclusion, write the significance of such recommendations.\u00a0\u00a0\u00a0<\/strong>\u00a0\u00a0<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Answer\"><\/span><strong>Answer:&nbsp;<\/strong>&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The union <strong>Finance Commission (FC) is a Constitutional body, appointed under Article 280<\/strong> of the Constitution, every \ufb01ve years by the President of India for the purpose of resource sharing between the Center and the states is unique to the Indian federal structure.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"13th_Finance_Commission_and_its_Departure_from_the_Recommendations_of_Previous_Commissions\"><\/span><strong>13<\/strong><strong><sup>th<\/sup><\/strong><strong> Finance Commission and its Departure from the Recommendations of Previous Commissions:<\/strong>&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Thirteenth Finance Commission (2010-15) was appointed by the President of India under the <strong>Chairmanship of Dr Vijay Kelkar<\/strong>.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>It suggested <strong>raising the states\u2019 share in Union Tax revenues<\/strong> from 30.5% to 32%.&nbsp;&nbsp;<\/li><li>It also called for a <strong>2.5% share of the divisible pool<\/strong> for local bodies in the form of grants, as the Constitution does not allow the sharing of tax revenues with them.\u202fWhile 1.5% will be constant, 1% will be based on performance.&nbsp;&nbsp;<\/li><li>The revenue was previously divided between rural and urban bodies in the ratio 4:1, the commission has suggested raising the latter\u2019s share to match their share of the population according to the 2001 census.&nbsp;&nbsp;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Recommendations_of_13th_FC_Strengthen_Local_Government_Finances\"><\/span><strong>Recommendations of 13<\/strong><strong><sup>th<\/sup><\/strong><strong> FC Strengthen Local Government Finances:<\/strong>&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>It will <strong>empower local bodies<\/strong> by turning the grants they receive into an entitlement, reducing the control that the state governments exercise over them.&nbsp;&nbsp;<\/li><li>The local governments will get their <strong>grants based on their performance<\/strong> and their share from the tax revenues.&nbsp;&nbsp;<\/li><li>The Commission\u2019s recommendations also seek to <strong>balance the share of urban bodies in total revenue<\/strong>.&nbsp;&nbsp;<\/li><li>It will help in addressing issues like <strong>increasing urbanization, emigration from rural to urban<\/strong> areas, etc.&nbsp;&nbsp;&nbsp;<\/li><li><strong>Competition among states<\/strong> due to <strong>performance-linked incentives<\/strong> will push the State governments to utilize the Central funds more effectively.\u202f&nbsp;&nbsp;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concerns_with_Recommendations_of_13th_FC\"><\/span><strong>Concerns with Recommendations<\/strong><strong> of 13<\/strong><strong><sup>th<\/sup><\/strong><strong> FC<\/strong><strong>:<\/strong>&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>\u202fThe latest <strong>Delimitation of Parliamentary and Assembly Constituencies<\/strong> has raised the political clout of urban voters.\u202f&nbsp;&nbsp;<\/li><li>It may have the <strong>potential to benefit the political party in power at the national level<\/strong>.&nbsp;&nbsp;<\/li><\/ul>\n\n\n\n<p>The recommendations of the 13th Finance Commission <strong>redefine the existing structure of fiscal federalism in the country<\/strong>, setting the stage for a different political dynamism by vesting greater powers with the third tier of government, local bodies, both urban and rural. The <strong>inclusive growth<\/strong> requires a fiscally strong Centre, States as well as third tier i.e., local governments.\u202f&nbsp;&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-essay?utm_source=Blog&amp;utm_medium=Banner&amp;utm_campaign=Essay\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" data-src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/UPSC-Essay-Course-1280\u00d7300-1-3.svg\" alt=\"\" class=\"wp-image-42688 lazyload\" width=\"781\" height=\"182\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 781px; --smush-placeholder-aspect-ratio: 781\/182;\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"In_case_you_still_have_your_doubts_contact_us_on_9811333901\"><\/span><strong>In case you still have your doubts, contact us on 9811333901.<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For UPSC Prelims Resources,&nbsp;<a href=\"https:\/\/edukemy.com\/upsc-cse-prelims-resource-centre\" target=\"_blank\" rel=\"noreferrer noopener\">Click here<\/a><\/p>\n\n\n\n<p>For Daily Updates and Study Material:<\/p>\n\n\n\n<p>Join our Telegram Channel &#8211;&nbsp;<a href=\"https:\/\/t.me\/WithEdukemy4IAS\" target=\"_blank\" rel=\"noreferrer noopener\">Edukemy for IAS<\/a><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>1. Learn through Videos &#8211;&nbsp;<a href=\"https:\/\/bit.ly\/3vOD8sU\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>2. Be Exam Ready by Practicing Daily MCQs &#8211;&nbsp;<a href=\"https:\/\/bit.ly\/3Q9z2nF\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>3. Daily Newsletter &#8211; Get all your Current Affairs Covered &#8211;&nbsp;<a href=\"https:\/\/bit.ly\/3bE2y5J\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>4. Mains Answer Writing Practice &#8211;&nbsp;<a href=\"https:\/\/bit.ly\/3mZuVxl\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Visit_our_YouTube_Channel_%E2%80%93_here\"><\/span>Visit our YouTube Channel &#8211;&nbsp;<a href=\"https:\/\/www.youtube.com\/@ShabbirsEduKemyforIAS\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>The recommendations put forth by the 13th Finance Commission mark a significant departure from its predecessors in their approach towards bolstering local government finances. <\/p>\n","protected":false},"author":17,"featured_media":27542,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[1500],"tags":[1964,142,232,145,140],"class_list":["post-27541","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-upsc-mains-solved-paper-gs-2","tag-13th-finance-commission","tag-previous_year_questions","tag-upsc","tag-upsc-mains-question-paper","tag-upsc_preparation_strategy"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/27541","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/comments?post=27541"}],"version-history":[{"count":1,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/27541\/revisions"}],"predecessor-version":[{"id":27543,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/27541\/revisions\/27543"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media\/27542"}],"wp:attachment":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media?parent=27541"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/categories?post=27541"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/tags?post=27541"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}