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Introduction

In: Fiscal Decentralization in India

Author

Listed:
  • V N Alok

    (Indian Institute of Public Administration)

Abstract

Passage of 73rd and 74th Constitutional Amendment Acts in 1992, in India, accelerated the process of decentralization with greater devolution and delegation of powers to local governments and gave recognition to Panchayats and Municipalities in the book of statute as institutions of self-government. State legislature has been made responsible to assign roles to them in the subjects listed in the newly created Schedules. The State is also required to transfer the interrelated powers to enable them to carry out the responsibilities conferred upon them. Such constitutional arrangements could have resulted in improved outcome at the local government level. However, it is more than two and a half decades since the amendments and much is left to be desired. The present chapter presents issues related to functional and financial devolution in India across states in the wake of 73rd and 74th amendments to the Constitution. It is observed that there is a huge mismatch between the responsibilities and financial powers leading to a severe fiscal stress at the local level and hence they are dependent on the higher level of governments to finance their activities.

Suggested Citation

  • V N Alok, 2021. "Introduction," Springer Books, in: Fiscal Decentralization in India, chapter 0, pages 1-17, Springer.
    • Handle: RePEc:spr:sprchp:978-981-16-2203-8_1
    DOI: 10.1007/978-981-16-2203-8_1
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