Article 243H of Constitution of India – Powers to impose taxes by, and Funds of, the Panchayats.
Article 243H of Constitution of India deals with Powers to impose taxes by, and Funds of, the Panchayats.
Original Text of Article 243H of Constitution of India
The Legislature of a State may, by law,—
(a) authorize a Panchayat to levy, collect and appropriate such taxes, duties, tolls and fees in accordance with such procedure and subject to such limits;
(b) assign to a Panchayat such taxes, duties, tolls and fees levied and collected by the State Government for such purposes and subject to such conditions and limits;
(c) provide for making such grants-in-aid to the Panchayats from the consolidated Fund of the State; and
(d) provide for constitution of such Funds for crediting all moneys received, respectively, by or on behalf of the Panchayats and also for the withdrawal of such moneys therefrom, as may be specified in the law.
Questions related to Article 243H of Constitution of India
Article 243H grants State Legislatures the authority to empower Panchayats to levy, collect, and appropriate taxes, duties, tolls, and fees. It also allows for the assignment of certain taxes and fees levied by the State Government to Panchayats, provision of grants-in-aid from the State’s Consolidated Fund, and the constitution of funds for crediting all moneys received by or on behalf of the Panchayats.
The complete text of Article 243H is available on the Constitution of India website. For legal interpretations and case law, you can refer to Indian Kanoon.
By empowering Panchayats with the authority to manage their own finances, Article 243H promotes decentralized governance. This decentralization allows for more localized decision-making and resource allocation, ensuring that local needs and priorities are addressed effectively.
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