The key to effective decentralization is, 'political decentralization should follow finance and functional decentralization.' Discuss in the context of impediments faced by local governance in India.
Main Body
Way Forward: → State governments must follow the 'Principle of Subsidiarity' i.e. what can be done at local level, should not be done at the state or Central level. → This will leave time for the states and the centre to focus on more important policies. → A clear demarcation of roles and activities should be done through an 'Activity Mapping' so that there is no overlap with the parastatals. → State governments must implement the recommendations of State Finance Commission. → Credit rating of municipal bonds should be done. This will build their credibility and enable them to raise funds from the capital market. → A dedicated cadre of Panchayat and municipalities need to be created. → Capacity building of functionaries needs to be done from time to time. → Lateral entry can be explored to compensate for the shortage in staff.
— RUHANI · AIR 5
Conclusion
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RUHANI
Federal Structure - Functions, Responsibilities, Devolution of Powers and Finances
Devolution to Local Levels
Solutions for Effective Decentralization
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