Day 7 – Q 5.Examine the challenges of local self governance in India. What role can financial devolution play in strengthening institutions of local self governance? Analyse.

5. Examine the challenges of local self governance in India. What role can financial devolution play in strengthening institutions of local self governance? Analyse. 

भारत में स्थानीय स्वशासन की चुनौतियों का परीक्षण करें। स्थानीय स्वशासन की संस्थाओं को मजबूत बनाने में वित्तीय विकास की क्या भूमिका हो सकती है? विश्लेषण करें।

Introduction

Local self-government refers to governmental jurisdictions below level of state. The 73rd and 74th constitutional amendments give recognition and protection to local self-government. The main is to achieve the Gandhian philosophy of self-sustaining organizations at grass root levels.

Body

Challenges of local self-governance in India:

• Administrative problems: lack of coordination between bureaucrats and subordinates.
• Unscientific distribution of money and functions: this is due to lack of knowledge of grass root problems and their importance.
• Regionalism: absence of coordination among the locals in the name of region, religion and caste.
• Financial scarcity: Due to lack of finance and funds, the development work is affected
• Excessive state control: this leads to corruption and favouritism.
• Substandard personnel: lax attitude towards the governance.

Role of financial devolution in strengthening institutions:

• Reach the last level of beneficiaries: Due to more funds, probability of reaching the beneficiaries is more and on time.
• Formalization at grass root level: Improvement towards designing political process which implies decision making authority at lowest level of organization.
• Regional specific growth: More the decentralization, more specific growth is ensured.
• Growth and planning: To do spatial planning keeping development as goal, institutions can manage and conserve the resources according to the funds received.
• More accountability: Social audit increases transparency and accountability. This strengthens democracy.
• Specific targets: Can mobilize local support and public cooperation for the implementation of programs for sustaining and long term benefits.

Solutions for funds:

• Strengthening state finance commission, tax base and granting more powers to local bodies.
• States need to strengthen revenue of the panchayat based on state finance commission.

Conclusion

The process of tax decentralization and principle of sharing the taxes is of paramount importance for the inclusive society. State finance commission hold the major concern in funding the local self-government.

Gandhi used terms like  Swaraj, Swadeshi and Indian civilization  instead of nation.

Gandhi used terms like  Swaraj, Swadeshi and Indian civilization  instead of nation.

Gandhi used terms like  Swaraj, Swadeshi and Indian civilization  instead of nation.

Gandhi used terms like  Swaraj, Swadeshi and Indian civilization  instead of nation.

Gandhi used terms like  Swaraj, Swadeshi and Indian civilization  instead of 

Gandhi used terms like  Swaraj, Swadeshi and Indian civilization  instead of nading the local self-government.