Which of the following Constitutional Amendment Acts constituted the State Finance Commission?

The Correct answer is 73rd Amendment Act.

Key Points

• The 73rd Constitutional Amendment Act of 1992 was a landmark amendment that introduced Panchayati Raj Institutions (PRIs) in India.
• This amendment added a new part, Part IX, to the Constitution and inserted Articles 243 to 243O.
• It mandated the establishment of the State Finance Commission to ensure the distribution of financial resources between the state and Panchayati Raj Institutions.
• The State Finance Commission is constituted every five years by the state government as per Article 243I.
• The commission is responsible for recommending the principles for the distribution of funds, grants, and financial resources between the state government and local self-governing bodies.
• The amendment aimed to strengthen grassroots-level democracy and ensure financial autonomy for local bodies.
• The 73rd Amendment Act is applicable to all states except, Nagaland, Meghalaya, and Mizoram, as well as certain areas covered under the Sixth Schedule.

Additional Information

• 74th Amendment Act
  • The 74th Constitutional Amendment Act introduced provisions for Urban Local Bodies (Municipalities).
  • This amendment added Part IXA to the Constitution and inserted Articles 243P to 243ZG.
  • It aimed to strengthen urban governance by establishing municipalities and ensuring their financial and administrative autonomy.
  • It mandated the creation of the District Planning Committees and Metropolitan Planning Committees for integrated planning at the district and metropolitan levels.
• 75th Amendment Act
  • The 75th Amendment Act deals with enabling provisions for the establishment of Rent Control Tribunals.
  • The act aimed to streamline the process of rent regulation and dispute resolution in urban areas.
  • It provided states with the power to establish tribunals for speedy adjudication of rent-related disputes.
• 76th Amendment Act
  • The 76th Amendment Act included the Tamil Nadu Reservation Act of 1994 in the Ninth Schedule of the Constitution.
  • This amendment ensured that the reservation policy of Tamil Nadu, which provides 69% reservation for backward classes, Scheduled Castes, and Scheduled Tribes, remains protected from judicial review.
  • The Ninth Schedule was created to shield certain laws from being challenged for violating fundamental rights.