Read the following statements around article 243 H of the Indian constitution.

1. Authorise a Panchayat to levy, collect and appropriate such taxes, duties, tolls and fees in accordance with such procedure and subject to such limits.
2. Assign to a Panchayat such taxes, duties, tolls and fees levied and collected by the State Government for such purposes, and subject to such conditions and limits.
3. Provide for making such grants-in-aid to the Panchayat from the Consolidated Fund of the Centre.

Which of these statements is/are true?

Question

Read the following statements around article 243 H of the Indian constitution.

1. Authorise a Panchayat to levy, collect and appropriate such taxes, duties, tolls and fees in accordance with such procedure and subject to such limits.

2. Assign to a Panchayat such taxes, duties, tolls and fees levied and collected by the State Government for such purposes, and subject to such conditions and limits.

3. Provide for making such grants-in-aid to the Panchayat from the Consolidated Fund of the Centre.

Which of these statements is/are true?

Quintessence Classes · Accepted Answer

The correct answer is Only 1 and 2. Statement Analysis:Statement 1 (Correct): Article 243H (a) empowers the State Legislature to authorize a Panchayat to levy, collect, and appropriate taxes, duties, tolls, and fees.Statement 2 (Correct): Article 243H (b) allows the State Legislature to assign to a Panchayat specific taxes or duties that are actually levied and collected by the State Government.Statement 3 (Incorrect): This is a common trap. Article 243H (c) provides for grants-in-aid to the Panchayats from the Consolidated Fund of the State, not the Centre. Grants from the Consolidated Fund of India (the Centre) are dealt with under different provisions, like Article 280 (Finance Commission).Understanding Article 243H (Financial Powers)Article 243H was inserted by the 73rd Constitutional Amendment Act, 1992. It ensures that Panchayats have the financial "teeth" to match their administrative responsibilities. It covers four main areas:Levying: Giving Panchayats the power to collect their own taxes.Assignment: The State giving a portion of its own tax revenue to the Panchayat.Grants-in-aid: Direct financial assistance from the State's budget.Funds: Constitution of specific funds for crediting all moneys received by the Panchayats.Key Related Article: 243-IWhile 243H lists the powers, Article 243-I is the mechanism that reviews the financial position of the Panchayats. It mandates the Governor to constitute a State Finance Commission every five years to make recommendations on the distribution of taxes between the State and the Panchayats.Revision Tip:In the context of the 73rd and 74th Amendments, always watch out for the distinction between "State" and "Union/Centre." Local government is a State Subject, so their primary financial lifeline is the Consolidated Fund of the State.

Answer

Only 2and 3

Answer

Only 1 and 3

Answer

Only 2

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JKPSC JKAS 2021 Prelims

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