UPSC Prelims 2010 Q144: Indian Polity – Local Government & Panchayati Raj
Which one of the following authorities makes recommendation to the Governor of a State
as to the principles for determining the taxes and duties which may be appropriated by the
Panchayats in that particular State ?
- (a) District Planning Committees
- (b) State Finance Commission
- (c) Finance Ministry of that State
- (d) Panchayati Raj Ministry of that State
Answer: (b) State Finance Commission
Explanation
Who recommends tax-appropriation principles for Panchayats
A specific constitutional body advises the Governor of a State on this matter.
| Option | Verdict | Reason |
|---|---|---|
| (a) District Planning Committees | Incorrect | DPCs handle development planning, not tax-appropriation recommendations to the Governor |
| (b) State Finance Commission | Correct | Under Article 243-I, the State Finance Commission reviews and recommends principles governing taxes/duties appropriation to Panchayats, reporting to the Governor |
| (c) Finance Ministry of that State | Incorrect | This is not the constitutionally designated body for this specific recommendation |
| (d) Panchayati Raj Ministry of that State | Incorrect | This ministry implements policy, but isn't the body constitutionally tasked with this specific financial recommendation |
State Finance Commission facts:
| Point | Detail |
|---|---|
| Constitutional basis | Article 243-I |
| Reports to | Governor of the State |
| Function | Recommends tax/duty appropriation principles for Panchayats |
Answer: (b) State Finance Commission.
Why each option is right or wrong
- (a) Incorrect. District Planning Committees handle development planning, not this specific financial recommendation.
- (b) CORRECT. The State Finance Commission (Article 243-I) makes this recommendation to the Governor.
- (c) Incorrect. The State Finance Ministry is not the constitutionally designated body for this specific function.
- (d) Incorrect. The Panchayati Raj Ministry implements policy, but isn't this specific recommending body.
Key point
Under Article 243-I, the STATE FINANCE COMMISSION recommends to the Governor the principles governing tax/duty appropriation to Panchayats.
Remember
State Finance Commission (Art. 243-I): recommends to the Governor the principles for Panchayat tax/duty appropriation.
Common mistakes
- Confusing the State Finance Commission's specific constitutional role with general planning or implementation bodies.
- Not knowing the specific Article 243-I basis for this recommendation.
- Mixing up District Planning Committees (development planning) with this financial recommendation function.
Exam tip
Article 243-I: State Finance Commission recommends tax/duty appropriation principles for Panchayats, to the Governor. A specific, frequently tested constitutional provision.
Sources
- Constitution of India — Article 243I (Constitution of Finance Commission)
- M. Laxmikanth — Indian Polity (Panchayati Raj)