Panchayats at different tiers have varying capacities for internal resource generation due to their differing tax domains and revenue-raising powers. Gram Panchayats often have more direct taxing powers.
Consider the following Assertion (A) and Reason (R) and choose the correct code : Assertion (A) : In connection with their own resource collection, the Panchayats at the village level are better placed than the Panchayats at the Intermediate and the District levels. Reason (R) : The Gram Panchayats have their own tax domain whereas the other two tiers have to depend only on tolls, fees and non-tax revenue for internal resource generation. Code :
Asked in APPSC Group 1 Prelims 2024 · Topic: Panchayati Raj and Community Development (Finances of Panchayati Raj Institutions: Sources of Revenue, Grants, and Role of State Finance Commission)
Show answer
Answer: A. Both (A) and (R) are true, and (R) explains (A).
More Indian Polity and Governance questions
- Which of the following statements is correct with respect to the State Finance Commission ? I. It is required to appoint a State Finance Commission once in five years. II. It recommends the determination of taxes, duties, tolls and fees assigned to the Panchayats and Municipalities. III. Article 243 deals with constitution of finance commission to review financial position of Panchayats. Choose the correct answer using the codes given below :
- Who recommends to the Governor the principles which should govern the distribution between the State and the panchayats of the net proceeds of the taxes and Fees leviable by the State, which may be divided between them ?
- Which of the following taxes is levied by the Gram Panchayats?
- Provision for Grant-in-Aid under Article 243 H for the Panchayats has been made out of which source?
- Which of the following statements are incorrect about the State Finance Commission? (a) Karnataka has recently constituted a Fifth Finance Commission to come out with recommendations on the division and allocation of resources after reviewing the financial position of Urban Local Bodies (ULBS) and Panchayat Raj Institutions. (b) It will be headed by retired IAS Officer Mohamed Sanaulla. (c) It will also determine the taxes, duties, tolls and fees which may be assigned to, or appropriated by the ULBs and Panchayats. (d) Article 243K of the Constitution mandates the State Governor to constitute a Finance Commission every five years.
- Consider the following statements in respect of Panchayati Raj Institutions in India : (i) Every Panchayati has right to receive grant-in-aid from the State Fund on the recommendation made by NITI Aayog. (ii) The assigned / shared revenues are one which is collected by State Government but shared / transferred to local bodies. (iii) State Finance Commission recommends transfer of financial resources from Centre to the States. (iv) The State Finance Commission created under Article 243 (I) reviews the financial position of Panchayats and Municipalities. Which of the above statement/s is / are correct ?
- With reference to the finance of Municipalities, consider the following statements: 1. Municipalities are not empowered to levy professional tax. 2. Municipalities cannot levy taxes on lands and buildings. Which of the statements given above is/are correct?
- Who among the following constitutes "Finance Commission" to review the financial position of Panchayats?