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India’s municipal finance system at a crossroads : A role for the sixteenth finance commission?

By: Mathur, Om Prakash.
Material type: materialTypeLabelBookPublisher: Economic & Political Weekly Description: 60(26,27), Jun-Jul, 28-05, 2025: p.42-47.Summary: Article 280(3)(c) is an important constitutional provision that requires the finance commissions to recommend measures for augmenting the Consolidated Fund of the state to supplement the resources of the municipalities. Finance commissions have made use of this provision to recommend grants-in-aid for municipalities to take on functions that far exceed their statutorily defined responsibilities, undertake systemic reforms, and establish protocols for ensuring compliance with the recommendations. This article explores these features of Article 280(3)(c) and takes a close look at the consequential changes in the finances and finance systems of municipalities. - Reproduced https://www.epw.in/journal/2025/26-27/perspectives/indias-municipal-finance-system-crossroads.html
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Article 280(3)(c) is an important constitutional provision that requires the finance commissions to recommend measures for augmenting the Consolidated Fund of the state to supplement the resources of the municipalities. Finance commissions have made use of this provision to recommend grants-in-aid for municipalities to take on functions that far exceed their statutorily defined responsibilities, undertake systemic reforms, and establish protocols for ensuring compliance with the recommendations. This article explores these features of Article 280(3)(c) and takes a close look at the consequential changes in the finances and finance systems of municipalities. - Reproduced

https://www.epw.in/journal/2025/26-27/perspectives/indias-municipal-finance-system-crossroads.html

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