Polity & Governance

101st Constitution Amendment Act

The 101st Constitution Amendment Act , enacted in 2016, introduced the Goods and Services Tax (GST) regime in India. It empowered the GST Council to decide on taxation matters related to goods and services. The Act includes a specific provision allowing the Council to recommend the date for applying GST on petroleum products such as crude oil, petrol, diesel, natural gas, and aviation turbine fuel. This amendment marked shift in indirect taxation by subsuming multiple taxes into one unified system, but it excluded petroleum products initially, pending further decisions by the Council.

Why in news?

The GST Council is expected to decide the date for levying GST on natural gas, as per the provisions of the 101st Amendment, during its December 21st meeting in Jaisalmer, Rajasthan.

11th Schedule

The 11th Schedule of the Constitution of India, added by the 73rd Amendment Act in 1992, lists 29 subjects under the jurisdiction of Panchayati Raj institutions. These include agriculture, health, sanitation, education, water management, and rural electrification. It enables decentralized planning and implementation of local development programs. The schedule excludes salaries and establishment expenses, focusing instead on service delivery and infrastructure development. It is a key legal framework empowering rural local bodies to manage and execute functions tailored to local needs, promoting grassroots democracy and self-governance.

Why in news?

Untied grants released to rural local bodies are intended to be used for subjects specified in the 11th Schedule, enabling targeted local development in Kerala and Meghalaya.

15th Finance Commission

The 15th Finance Commission was constituted in 2017 to recommend the distribution of financial resources between the Union and states for 2021-26. It focuses on fiscal federalism, equitable resource sharing, and improving local governance. It introduced grants for rural local bodies that are untied, allowing flexible use across 29 subjects listed in the 11th Schedule of the Constitution. The Commission emphasizes strengthening Panchayati Raj institutions by incentivizing performance and promoting fiscal autonomy. It recommends grants to both rural and urban local bodies, with a focus on capacity building and sustainable development.

Why in news?

The Union government released the second instalment of 15th Finance Commission grants to rural local bodies in Kerala for 2024-25 as part of its budgetary allocations.

74th Constitutional Amendment

The 74th Constitutional Amendment Act, 1992 , came into force in 1993 to empower urban local bodies (ULBs) in India. It mandates the devolution of 18 specific functions including urban planning, water supply, and public health to ULBs. The amendment established elected urban local governments with fixed five-year terms and provisions for ward committees. It also requires the creation of State Finance Commissions to recommend financial devolution to ULBs. Despite its passage over 30 years ago, full implementation remains incomplete in many states, limiting ULBs’ autonomy and effectiveness in urban governance.

Why in news?

The CAG released a report denoting that 18 states have not fully implemented the 74th Amendment, affecting 241 million residents and causing a 42% gap between ULBs’ resources and expenditure.

Amicus Curiae

An amicus curiae is a person or organization appointed by a court to provide expert advice on complex matters relevant to a case. In India, courts often appoint amicus curiae in novel or complicated legal disputes to assist judges. The term means “friend of the court” in Latin. This role is impartial and helps ensure informed judicial decisions, especially when technical or specialized knowledge is required. Amicus curiae submissions can influence case outcomes and legal precedents. In the ANI v OpenAI case, an amicus curiae was appointed to assist the Delhi High Court in understanding AI and copyright complexities.

Why in news?

The Delhi High Court appointed an amicus curiae to assist in the first Indian lawsuit challenging generative AI on copyright grounds, denoting the case’s technical and legal complexity.

Beneficial Interest Declaration

The declaration of beneficial interest holders refers to disclosing individuals who ultimately own or control a legal entity’s assets or contributions, even if not officially listed as partners. This transparency measure targets LLPs and other entities to prevent concealment of ownership and curb illicit activities like money laundering. The Government of India recently mandated LLPs to declare such beneficial interests to enhance regulatory oversight. ...