Poll Freebies

Syllabus: General Studies Paper 2

Chief Justice of India said the culture of promising freebies during elections “a very serious issue” and asked the central government to take a stand on curbing the situation.

• The Election Commission of India (ECI), on the other hand aid it has no power to regulate the same or take action against parties making such poll promises.
• In an affidavit, the poll body said “offering/distribution of any freebies either before or after election is a policy decision of the party concerned, and whether such policies are financially viable or its adverse effect on the economic health over the state is a question that has to be considered and decided by the voters.
• The Court asked the central government to consider involving the Finance Commission to deliberate on the issue.
• The hearing came on a writ petition filed by Ashwini Kumar Upadhyay, who had argued that the offer and distribution of “irrational freebies” amounted to bribery and unduly influencing voters. It vitiated free and fair elections in the country.
• Advocate Ashwini Upadhyay, who is the petitioner in the PIL, informed the court that all Indian states combined have a debt of “over Rs 70 lakh crore.”
• The state of Punjab was under debt of Rs 3 lakh crore. The entire population of Punjab is 3 crore. This means that every citizen has a debt amounting to crores!

Finance Commission of India

The Finance Commission (FC) is a constitutional authority that sets the mechanism and formula for allocating tax revenues between the Centre and states, as well as among states, in accordance with the Constitution and current needs. The President of India is mandated by Article 280 of the Constitution to appoint a Finance Commission every five years or sooner. In November 2017, the President of India appointed the 15th Finance Commission, under the chairmanship of NK Singh. It will make suggestions for a five-year period, from 2021-22 to 2025-26. 

Finance Commission – Members Qualifications

• Parliament may by law determine the qualifications which shall be requisite for appointment as members of the Commission and the manner in which they shall be selected.
• The Chairman of the Commission is selected from among persons who have experience in public affairs, and the four other members are selected from among persons who:
• are, or have been, or are qualified to be appointed as Judges of the High Court;
• have special knowledge in the finances and accounts of the Government;
• have had wide experience in financial matters and in administration;
• have special knowledge of economics.

Disqualification: Members may be disqualified if they are found to be of unsound mind, have committed a heinous act, or have a conflict of interest.

Tenure of Finance Commission

• The President of India specifies the term of office for Members of the Finance Commission, they are normally appointed for five years, and in some situations, the members are re-appointed.
• The members must contribute part-time or volunteer service to the Commission as the President directs.
• Before the five-year period expires, the President can appoint a Finance Commission if he deems it essential.
• Functions

Functions of the Finance Commission

• It is the duty of the Commission to make recommendations to the President as to:
• The distribution between the Union and the States of the net proceeds of taxes which are to be, or maybe, divided between them and the allocation between the States of the respective shares of such proceeds.
• The principles which should govern the grants-in-aid of the revenues of the States out of the consolidated fund of India.
• The measures needed to augment the Consolidated Fund of a state to supplement the resources of the Panchayat in the State on the basis of the recommendation made by the Finance commission of these states.
• The measures needed to augment the Consolidated Fund of a state to supplement the resources of the Municipalities in the State on the basis of the recommendation made by the Finance commission of these states.
• Any other matters referred to the Commission by the President in the interests of sound finance.
• The Commission determines its procedure and has such powers in the performance of their functions as Parliament may by law confer on them.