1. 16th Finance Commission: Local Body Grants and State Autonomy
- Debate on the 16th Finance Commission centres on earmarking funds directly for panchayats and municipalities.
- States say stricter conditions bypass them, since local government is a State subject in List II.
- Many local body grants are tied to areas such as sanitation, water supply and health.
- Articles 243-I and 243-Y, added by the 73rd and 74th Amendments, root the Commission's local body mandate.