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Fiscal Empowerment of Panchayats in India: Real or Rhetoric?

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  • M Devendra Babu

    (Institute for Social and Economic change)

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    Abstract

    The focus of this paper is to review the financial position of panchayats in India. The analysis is based on the secondary sources of information. It reveals that the panchayats have very little fiscal autonomy. The locally raised revenues are very negligible. The funds flow from higher level governments are very low and lack any devolution design or principles. The transfers are made at the convenience and mercy of such governments.

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    Bibliographic Info

    Paper provided by Institute for Social and Economic Change, Bangalore in its series Working Papers with number 229.

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    Length: 21 pages
    Date of creation: 2009
    Date of revision:
    Handle: RePEc:sch:wpaper:229

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    Related research

    Keywords: Local Governance; Local Government Finance; Fiscal Empowerment;

    References

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    1. M Govinda Rao, 2001. "Fiscal Decentralization in Indian Federalism," Working Papers 98, Institute for Social and Economic Change, Bangalore.
    2. Roy Bahl & Jorge Martinez-Vazquez, 2013. "Sequencing Fiscal Decentralization," Annals of Economics and Finance, Society for AEF, vol. 14(2), pages 641-687, November.
    3. Bird, Richard M. & Smart, Michael, 2002. "Intergovernmental Fiscal Transfers: International Lessons for Developing Countries," World Development, Elsevier, vol. 30(6), pages 899-912, June.
    4. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
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