Fiscal Decentralisation: Financing of Panchayati Raj Institutions in India

The worldwide trend towards democratic decentralization and empowering the grass-root level institutions has led reshaping the rural development programmes and administrative reforms. Effective decentralization require political, fiscal and administrative reforms to implement decisions and initiatives so that efficiency in the delivery of public services may be ensured. With the change in policy regime, socio-economic environment and development paradigms, there is need of special focus on rural India for empowering rural poor and ensuring people’s participation in democratic decentralized governance. As we know that decentralization in most of the states in India is characterized by overlapping of functions and proliferation of schemes. The overlap of expenditure and responsibilities between different levels of government has implications on administration and governance. Thus, in this scenario, resource mobilization, and management of Panchayat finances need special emphasis. Present book highlights the status of democratic decentralization, Panchayat financing, fiscal decentralization, devolution of functions and finances to Panchayati Raj Institutions and review of various State Finance Commission reports. It is hoped that the book will be useful for the policy makers, administrators, economists, researchers and those who are interested in this field.