RAS question
Rajasthan State Finance Commission recommends:
Correct answer: (D) Distribution of revenue between state and local bodies.
The Rajasthan State Finance Commission recommends how revenue should be distributed between the State and local bodies such as Panchayats and Municipalities.
Explanation
The Rajasthan State Finance Commission is not a policy body for general subjects; its constitutional role is financial devolution to local self-government. The cited Sixth State Finance Commission report says Article 243-I requires a Finance Commission to review the financial position of Panchayats and make recommendations to the Governor, while Article 243-Y provides similarly for Municipalities. It specifically recommends the principles governing distribution between the State and Panchayats and Municipalities of the net proceeds of State-levied taxes, duties, tolls and fees. The report also links this mandate to grants from the Consolidated Fund of the State and measures to improve the financial position of these local bodies. Therefore, option D captures the core function.
Why the other options are wrong
- (A) Foreign policy is outside the State Finance Commission's cited mandate, which is about State-local fiscal distribution and local bodies' finances.
- (B) Education policy is not the recommendation area stated in the source; the Commission reviews the financial position of Panchayats and Municipalities.
- (C) The defence budget is not covered by the Commission's terms described in the report, which concern State revenues, grants and local bodies.
Concept
This tests constitutional local self-government finance under Articles 243-I and 243-Y. It recurs in RAS because Rajasthan polity questions often ask which institution handles devolution between the State and Panchayati Raj or urban local bodies.