Working Paper: 229
Fiscal Empowerment of Panchayats in India:
Real or Rhetoric?
M Devendra Babu
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.