Competitive Exams: 13th Finance Commission Recommendations

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  1. Article 280 (3) (bb) & (c) of the Constitution should be amended such that the words on the basis of the recommendations of the Finance Commission of the State? are changed to after taking into consideration the recommendations of the Finance Commission of the State?
  2. Article 243 (I) of the Constitution should be amended to include the phrase or earlier? after the words every fifth year?
  3. State Governments will be eligible for the general performance grant and the special areas performance grant only if they comply with the prescribed stipulations. These grants will be disbursed in the manner specified.
  4. The State Governments should incentivize revenue collection by local bodies through methods such as mandating some or all local taxes as obligatory at non-zero rates of levy, by deducting deemed own revenue collection from transfer entitlements of local bodies, or through a system of matching grants.
  5. The Government of India and the State Governments should issue executive instructions so that their respective departments pay appropriate service charges to local bodies.
  6. Given the increasing income of State Governments from royalties, they should share a portion of this income with those local bodies in whose jurisdiction such income arises.
  7. State Governments should ensure that the recommendations of State Finance Commissions (SFCs) are implemented without delay and that the Action Taken Report (ATR) is promptly placed before the legislature.
  8. Local Bodies should be associated with city planning functions wherever other development authorities are mandated this function. These authorities should also share their revenues with local bodies.
  9. State Governments should lay down guidelines for the constitution of nagar panchayats.