Question

Which of the following are correct procedures and attributes related to the members of the State Finance Commission?

i. A member's term is fixed by the state government in the appointment order.
ii. A member can resign by writing to the Chief Minister.
iii. All members are eligible for re-appointment.
iv. A vacancy must be filled for a fresh full term.

• A. i & iii
• B. i & ii
• C. ii & iv
• D. iii & iv

Answer 1

Answer:

A. i & iii

State Finance Commission

• Constitutional Basis: The State Finance Commission (SFC) is a constitutional body established under Article 243-I and 243-Y of the Constitution of India. It is mandated to review the financial position of Panchayats and Municipalities and recommend the principles that should govern the distribution of taxes, duties, tolls, and fees between the State and the Panchayats/Municipalities, as well as the allocation of revenues among these local bodies.

• Appointment and Tenure:

  • The Governor of the State constitutes the SFC.

  • The term of office and other conditions of service of the members are determined by the Governor, as specified in the order of appointment. This aligns with statement (i).

  • Members can resign by submitting their resignation to the Governor, not the Chief Minister. Therefore, statement (ii) is incorrect.

• Re-appointment: Members are generally eligible for re-appointment, provided they meet the criteria and are considered suitable by the appointing authority. This supports statement (iii).

• Filling of Vacancies: If a vacancy arises, the appointing authority (Governor) may appoint a qualified person to fill the vacancy. However, there is no mandatory requirement that a vacancy must be filled for a fresh full term, unlike some other constitutional bodies. The filling of a vacancy typically depends on the remaining term and the discretion of the Governor. Therefore, statement (iv) is generally considered incorrect in the context of a mandatory fresh full term.

• Significance: The SFC plays a crucial role in strengthening the financial autonomy and fiscal health of local self-government institutions in India. It ensures a fair devolution of financial resources, enabling Panchayats and Municipalities to perform their functions effectively.