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Subject: Polity

  • Explain the salient features of the constitution(One Hundred and First Amendment) Act, 2016. Do you think it is efficacious enough ‘to remove cascading effect of taxes and provide for common national market for goods and services’?

  • “The local self-government system in India has not proved to be effective instrument of governance”. Critically examine the statement and give your views to improve the situation.

  • Critically examine the Supreme Court’s judgement on ‘National Judicial Appointments Commission Act, 2014’ with reference to appointment of judges of higher judiciary in India.

  • ‘Simultaneous election to the Lok Sabha and the State Assemblies will limit the amount of time and money spent in electioneering but it will reduce the government’s accountability to the people’ Discuss.

  • How do pressure groups influence Indian political process? Do you agree with this view that informal pressure groups have emerged as powerful than formal pressure groups in recent years?

  • Discuss the role of Public Accounts Committee in establishing accountability of the government to the people.

  • Assess the importance of Panchayat system in India as a part of local government. Apart from government grants, what sources the Panchayats can look out for financing developmental projects.

    73rd and 74th CAA are the embodiment of grass-root democracy and democratic decentralization in India. They are inspired by Gandhiji’s concept of “Oceanic Circles of Power” and “Swaraj”.

    Importance of PRIs

    Rajni Kothari – Described local bodies as “schools of democracy” where political awareness and participation are cultivated at the grassroots level.

    Democratic Decentralization – Eg- Kerala’s People’s Plan Campaign grants local bodies control over 40% of the state’s plan budget.

    Capacity Building– Training programs for PRI members. Eg- e-Panchayat initiative

    Efficient Local Service Delivery- Addresses local needs in sanitation, drinking water, roads, housing, and education. Eg- Hiware Bazar Model of watershed development.

    Transparency– Direct accountability to local constituents. Eg- Rajasthan’s Social Audit Mechanism

    Implementation of Schemes, ensuring that benefits reach the grassroots. Eg- MGNREGA.

    Financial Autonomy– PRIs have the power to levy taxes and mobilize resources, which helps them fund and manage local development projects.

    Conflict Resolution- Reports indicate a 30% reduction in petty disputes reaching district courts due to effective Panchayat mediation.

    Inclusivity– Reserving seats for women, Scheduled Castes, and Scheduled Tribes. Eg- Women’s Representation at 46.44%

    Challenges

    “PRIs exist as over-structured but underpowered organisations.” (2nd ARC)

    No decentralisation of power, rather decentralisation of corruption – Mani Shankar Iyer Committee

    Dependence on higher tiers- Around 95% of Panchayat funds come from Central/State transfers, limiting fiscal autonomy.

    Limited own-source revenue- Poor tax collection efficiency (>1% own tax).

    Barriers to Local Taxation- Freebie culture and fear of losing popularity discourage local taxation.

    Incomplete devolution- less than 20% of States have transferred all 29 subjects under 11th Schedule (MoPR, 2022). (​​overall Panchayat Devolution Index is only 43.89% (2021-22))

    Centralised Welfare via Cash Transfers – The welfare state now relies on DBT through JAM, bypassing panchayats and reducing local accountability and participatory governance

    Shortage of staff- Average 0.67 Panchayat Secretaries per Gram Panchayat, as low as 0.33 in Uttar Pradesh.

    Weak Gram Sabhas- Low participation, elite domination, and token meetings.

    Gender and social barriers leading to proxy control. (Sarpanch Pati)

    Alternate Sources of Panchayat Financing (Beyond Government Grants)

    Own Tax Revenues- Property/House tax, Profession tax, Market fees, and Entertainment tax.

    Non-Tax Revenues- Rent from panchayat buildings, water usage fees, license fees, and user charges for services.

    Public-Private Partnerships (PPPs) for solid waste management, renewable energy, or tourism projects. Eg- waste-to-energy projects.

    Community Contributions- Voluntary labor (Shramdaan), local donations, and community funds for infrastructure.

    Borrowings and Bonds- Soft loans from NABARD and Rural Infrastructure Development Fund (RIDF) for rural projects.

    Corporate Social Responsibility (CSR)- Eg- Tata Steel CSR projects in Jharkhand villages for drinking water and sanitation.

    Using funds from MGNREGA, 15th FC grants for rural infrastructure development.

    Way Forward

    Strengthen State Finance Commissions (SFCs) with mandatory action on their recommendations.

    Manishankar Aiyar Committee recommendations – Adopt activity mapping for clear delineation of 3Fs – Funds, Functions, Functionaries.

    Flexible Funding Norms under CSS

    To realise the vision of “Gram Uday se Bharat Uday”, India needs second-generation Panchayati Raj reforms

  • Whether the Supreme Court Judgement (July 2018) can settle the political tussle between the Lt. Governor and elected government of Delhi? Examine.

    The governance of Delhi has remained contentious due to its special constitutional status under Article 239AA. The Supreme Court’s July 2018 Constitution Bench judgment in Government of NCT of Delhi v. Union of India sought to clarify the powers of the Lt. Governor (LG) vis-à-vis the elected government.

    Key Features of the 2018 Judgment

    Aid and Advice– LG is bound by the aid and advice of the Council of Ministers, except in matters of land, police, and public order.

    No Independent Power– LG cannot act independently; he is not an obstructionist authority.

    In case of conflict, LG should refer matter to President.

    SC concluded (following Balakrishnan Committee) that Delhi is not a state.

    Can the 2018 SC Judgment Settle the Tussle?

    Yes – Scope for Settlement

    Judicial clarity – LG bound by aid and advice except land, police, public order.

    Strengthens democracy – Elected govt. empowered.

    Curtails obstruction – LG cannot act independently or stall routine decisions.

    Constitutional morality – Promotes cooperative federalism, mutual trust.

    Checks arbitrariness – Limits misuse of “difference of opinion” clause.

    Encourages dialogue – Pushes for institutional maturity and coordination.

    No – Tussle Likely to Persist

    Ambiguity remains – Article 239AA(4) still allows LG to escalate disputes.

    Key exclusions – Land, police, public order under Centre control.

    Services issue – Left unresolved in 2018, led to fresh disputes till 2023.

    Party rivalry – Conflict driven by politics, not just legal text.

    Structural limits – Delhi lacks full statehood, unlike other states.

    Comparative experience – Capitals like Washington D.C. also face similar tussles.

    Way Forward

    Legislative clarity on Article 239AA to reduce ambiguity.

    Institutionalised cooperative mechanisms such as inter-governmental councils for Delhi.

    Judicial restraint and constitutional morality from all actors.

    Political maturity to balance Union concerns with the democratic mandate of Delhi’s citizens.

    “Federalism is not a monolith; it is a dialogue between self-rule and shared rule.” Both Union & States are creatures of the Constitution

  • India and USA are two large democracies. Examine the basic tenets on which the two political systems are based.

    The United States as the first republic and India as the mother of democracies share a common philosophical foundation of liberty, equality, and constitutionalism, expressed through distinct institutional frameworks.

    Similar Basic Tenets

    Constitutional Supremacy: Constitution is the supreme law governing all institutions.

    Popular Sovereignty: Political authority derives from “We, the People” in both systems.

    Rule of Law: Enforced through Article 14 (India) and Fifth Amendment (USA), ensuring equality before law and due process.

    Representative Democracy: Based on universal adult franchise and periodic elections.

    Separation of Powers: Distinct organs maintain balance-Articles 50, 53-74 (India) and Articles I-III (US Constitution).

    Judicial Independence: Judiciary acts as guardian of the Constitution with review powers.

    Fundamental Rights: Part III (Arts. 12-35) in India parallels the Bill of Rights (1791) in the USA protecting civil liberties.

    Differences in Political Systems

    The shared democratic ideals of both nations affirm universal constitutional principles, while their institutional differences reflect unique historical and socio-cultural contexts.

  • How is the Finance Commission of India constituted? What do you about the terms of reference of the recently constituted Finance Commission? Discuss.

    The Finance Commission of India (FC), established under Article 280 of the Constitution, is a quasi-judicial body. It plays a vital role in maintaining the fiscal federal balance envisioned by the Constitution.

    Constitution of the Finance Commission

    Constitutional Provision- As per Article 280(1), the President of India constitutes the Finance Commission every five years or earlier if necessary.

    Composition-

    Consists of a Chairperson and four other members, appointed by the President.

    Their qualifications and terms of service are determined by the Finance Commission (Miscellaneous Provisions) Act, 1951.

    Tenure- The Commission usually has a tenure of five years, extendable by Presidential order.

    Terms of Reference (ToR) of the Recently Constituted Finance Commission

    The 16th Finance Commission was constituted in December 2023, chaired by Dr. Arvind Panagariya.
    Its recommendations will apply for the period 2026-2031.

    Division of Tax Proceeds

    Recommend the distribution of net tax proceeds between the Union and the States under Chapter I, Part XII of the Constitution.

    Determine the allocation of shares among individual States from the total divisible pool of central taxes.

    Principles for Grants-in-Aid

    Lay down the principles governing grants-in-aid to States from the Consolidated Fund of India.

    Recommend the amounts to be provided to States as grants under Article 275, for purposes other than those specified in the provisos to clause (1).

    Enhancing State Funds for Local Bodies

    Suggest measures to increase the Consolidated Fund of States to supplement resources of Panchayats and Municipalities.

    Base these recommendations on the inputs of respective State Finance Commissions, ensuring fiscal strengthening of local governance.

    Evaluation of Disaster Management Financing

    Review existing funding mechanisms for Disaster Management, particularly those created under the Disaster Management Act, 2005.

    Recommend improvements in the structure, sharing pattern, and utilization of National and State Disaster Response Funds.

    Any Other Matters Referred by the President

    Examine and recommend on additional fiscal issues to ensure “sound finance,” including fiscal consolidation, resource augmentation, and expenditure efficiency.

    Challenges Ahead

    Data Gaps and Quality Issues- Relies on outdated and inconsistent official data, affecting fiscal assessments.

    Political Factors- Faces pressure to balance conflicting interests of Centre, States, and political stakeholders.

    Overlap with GST Council- GST decisions affect revenue flows and reduce FC’s fiscal autonomy.

    Limited Role in Local Governance- Depends on weak or irregular State Finance Commissions for data and recommendations.

    FCs have no enforcement power, as their recommendations are advisory in nature.

    Way Forward

    Ensuring state representation in decision making

    Permanence- Make FC a permanent body for continuous review and coordination. (Rajamannar Committee)

    Addressing Emerging Issues and Challenges – Factor in digital transformation and green financing for sustainable growth.

    Build data-driven analytical capacity with reliable and updated fiscal databases.

    The Finance Commission remains the keystone of India’s fiscal federalism, ensuring both equity and efficiency in resource distribution.