Draw attention to the constitutional requirements pertaining to the mobilization and management of resources.
Highlight the constitutional provisions regarding resource mobilisation and management.
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Constitutional Provisions on Resource Mobilization and Management: Empowering Local Governance
The Indian Constitution provides a robust framework for resource mobilization and management, especially at the local governance level. These provisions are aimed at ensuring financial autonomy for local bodies, empowering them to address the unique developmental needs of their communities. Several key constitutional articles and amendments emphasize the principles of fiscal decentralization and local resource management:
Article 243H: Reservation of Seats:
Article 243H of the Constitution mandates the reservation of seats for Scheduled Castes (SCs), Scheduled Tribes (STs), and women in local bodies. This provision ensures inclusive participation in decision-making processes related to resource allocation and management.
Article 243-I: Constitution of Finance Commission:
Article 243-I provides for the establishment of a Finance Commission at the state level to review the financial position of Panchayats and municipalities. The Finance Commission recommends the principles governing grants-in-aid to local bodies from the state's consolidated fund.
Article 243-Y: Continuance of Existing Laws:
Article 243-Y ensures the continuity of existing laws related to local government finances until amended by the state legislature. This allows for a transitional phase during the implementation of fiscal decentralization measures.
73rd Amendment – Article 280: Grants-in-Aid to States:
The 73rd Amendment introduced Article 280-A, which empowers the President to constitute a Finance Commission to review the financial position of the Panchayats. This commission recommends the principles that govern the distribution of grants-in-aid to states, further empowering local bodies.
73rd Amendment – Article 243ZE: Audit of Accounts:
Article 243ZE of the 73rd Amendment ensures that the Comptroller and Auditor-General of India conducts audits of the accounts of Panchayats, enhancing financial transparency and accountability in local governance.
74th Amendment – Article 243ZE: Audit of Accounts:
The 74th Amendment extends similar provisions for audit of accounts to urban local bodies, such as municipalities and municipal corporations, ensuring financial oversight in both rural and urban local governance.
Article 243G: Powers, Authority, and Responsibilities of Panchayats:
Article 243G vests Panchayats with the powers, authority, and responsibilities to undertake various developmental activities. This includes the management of funds, resources, and planning for economic development and social justice at the local level.
Article 243W: Powers, Authority, and Responsibilities of Municipalities:
Similarly, Article 243W grants municipalities the powers, authority, and responsibilities to manage their resources effectively. This includes taxation powers, collection of fees, and the ability to raise revenue for local governance activities.
Article 275: Grants from the Centre:
Article 275 empowers the President to make grants to states that are in need of assistance. These grants can be earmarked for various purposes, including local development projects, providing an additional source of financial support for local bodies.
Article 282: Power of the Center to Grant Funds:
Article 282 enables the Central Government to make grants for any public purpose, reinforcing the possibility of financial assistance for local bodies from the national government.
These constitutional provisions collectively lay the foundation for resource mobilization and management at the local governance level in India. By establishing Finance Commissions, ensuring audit mechanisms, and delineating the powers and responsibilities of local bodies, the Constitution aims to promote fiscal autonomy and empower Panchayats and municipalities in undertaking effective developmental initiatives tailored to the needs of their communities.