Relevance for Banking, SSC & RBI Grade B exams: Polity & Governance

The Telangana Panchayat Raj and Rural Development (PR&RD) Department has refuted allegations of diverting 15th Finance Commission funds, terming them “factually incorrect.” Commissioner D. Divya clarified that the grants are used strictly for statutory obligations like streetlight maintenance and drinking water supply systems, as mandated under Section 52 of the Telangana Panchayat Raj Act, 2018. The department emphasized that the tied component of these funds is earmarked for specific development works, while the untied component can be utilized for subjects listed in the Eleventh Schedule of the Constitution, including electricity and water distribution. The funds are directly released to Gram Panchayats, Mandal Praja Parishads, and Zilla Praja Parishads, ensuring no diversion by the state government.

This issue holds relevance for Banking, SSC, and RBI Grade B exam aspirants as it highlights the constitutional and administrative framework governing local governance and finance. Understanding the role of Finance Commissions, the Eleventh Schedule, and the Panchayat Raj system is crucial for exams like IBPS, SBI, and SSC, where polity and governance form key sections. The clarification also underscores the importance of fiscal federalism and the accountability of state governments in utilizing centrally sponsored funds, a topic often tested in competitive examinations.

Source: The Hindu

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