Augmenting the financial resources of sub-national governments (Panchayati Raj Institutions) in India
- 2004
- p.799-817.
- Jul-Sep
The Centre-state fiscal relations and its delivery mechanism were in placed developed for long but no separate provisions existed for local governments until the recent Constitutional amendments were made. to achieve the fiscal autonomy, and PRIs have been empowered to raise revenue through their own sources, as enlisted in the respective state acts. However, the PRIs could not impose these taxes to the full potential. The PRIs are also given additional assistance for the development work in the form of Centrally-sponsored schemes. The rural development accounts for about half. The MP/MLA/MLC/Sarpanch local area development funds are also directed for the ddevelopment work in the constituencies of these elected bodies. The privatisation of some select services may also reduce the expenditure, which in turn help to improve the financial position of the PRIs. A strong comprehensive computerised data base in the form of e-panchayat would also attract the investors and the tourists in the rural areas, which would lead to revenue enhancement (The Madhya Pradesh model of e-governance and "gramsamparak" is a good example). - Reproduced.