Panchayat Raj Finance Corporation had been first recommended by which among the following committees?
- Santhanam Committee (1963)
The Balwant Rai Mehta Committee was followed by the Santhanam Committee. This committee was formed by the Government of India with terms of reference as follows:
- Handing over resource of revenue in full / part to the PRIs
- The criteria of Sanction of grants to them by State Government
- Status of the Financial Relations between the different levels of PRIs.
So, in a nutshell, the Santhanam Committee’s scope of study was the financial matters of the PRIs. The important recommendations this committee made are as follows:
- The Panchayati Raj Finance Corporations should be established.
- All the grants at the state level should be sent in a consolidated form to various PRIs
- Panchayats should have power to levy special tax which should be based upon the land revenue and house tax etc.
This question is a part of GKToday's Integrated IAS General Studies Module