RAS question
The State Finance Commission for Panchayats and Municipalities is constituted under:
Correct answer: (A) Article 243-I.
The State Finance Commission is constituted under Article 243-I by the Governor every five years to review the financial position of Panchayats.
Explanation
Article 243-I is the governing provision for the State Finance Commission in the Panchayati Raj framework. It requires the Governor to constitute the Commission every five years, so the mechanism is periodic rather than ad hoc. Its task is to review the financial position of Panchayats and recommend how taxes, tolls and grants-in-aid should be distributed to them. Article 243-I is the specific local-government finance provision for the Governor-constituted State Finance Commission structure.
Why the other options are wrong
- (B) Article 243-K deals with elections to Panchayats, not the Governor's five-year State Finance Commission.
- (C) Article 280 concerns the Finance Commission of India, while the State Finance Commission mechanism for Panchayats falls under Article 243-I.
- (D) Article 275 deals with grants-in-aid, but the constitution of the State Finance Commission is traced to Article 243-I, not Article 275.
Concept
Fiscal devolution under local self-government depends on constitutional machinery that links Panchayats with predictable State-level finance review. RAS preparation often requires careful separation of nearby article numbers covering finance, election and grant provisions.