Financial Management of Panchayati Raj

Finance has been accepted as the life blood of the institutions like Panchayati Raj which has been entrusted with the task of socio-economic development of the community and establishment of autonomous local self-government. Financial Management formulates the Panchayati Raj Institution’s strategy in determining the most effective use of the funds currently at its disposal and in selecting the most favourable source of additional funds that it will need in foreseeable future. This study is a comprehensive study of Financial Management of Panchayati Raj Institutions. The study explores various aspects and mechanism for adequate availability of finance for according financial autonomy to PRIs. In this study, finance has been analysed and finance-function interrelationship has been examined to get an insight into the relative significance of various components of functions. An evaluation has been made for the effectiveness and assessment for financial status of Panchayati Raj.