Recommending the devolution of funds to Panchayats
Auditing Panchayat accounts
Resolving disputes between Panchayats
Formulating Panchayat policies
Answer is Right!
Answer is Wrong!
The correct answer is: Recommending the devolution of funds to Panchayats.
The State Finance Commission (SFC) is a body constituted by the state government to recommend the devolution of funds to Panchayats. The SFC is constituted every five years and its recommendations are binding on the state government. The SFC takes into account the following factors while making its recommendations:
- The financial needs of the Panchayats
- The revenue-raising capacity of the Panchayats
- The state government’s fiscal position
The SFC’s recommendations are important as they determine the level of financial resources available to the Panchayats. This, in turn, affects the ability of the Panchayats to provide basic services to the people.
The other options are incorrect because:
- Auditing Panchayat accounts is the responsibility of the State Audit Department.
- Resolving disputes between Panchayats is the responsibility of the State Election Commission.
- Formulating Panchayat policies is the responsibility of the State government.