Article Information

Authors DR. UDAYAKUMAR L. DODDAMANI
Article Type Research Article
Language English
Journal North Asian International Research Journal of Social Science & Humanities
ISSN 2454-9827
Volume 12
Issue 6
Pages 56-59
Publication Year 2026
Publication Date June 01, 2026
DOI URL https://doiglobal.org/10.2026/NAIRJCSSH.031

Abstract

Local self-government requires more than elections: panchayats need authority, staff, and predictable resources to plan and deliver public services. This paper examines fiscal decentralisation in India through a qualitative review of constitutional provisions, Finance Commission reports, and the Ministry of Panchayati Raj’s Devolution Index. It distinguishes the legal power to raise and spend money from the actual capacity to use it. The analysis argues that grants improve the resource base but do not by themselves resolve delayed transfers, limited own-source revenue, fragmented administrative control, and weak planning capacity. Amore meaningful measure of decentralisation asks whether a panchayat can identify local priorities, obtain funds on time, execute decisions, and account publicly for results. This is a desk-based review and does not present original district fieldwork.

Keywords

fiscal decentralisation Panchayati Raj local governance State Finance Commission public accountability

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2026

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DOI: 10.2026/NAIRJCSSH.031

References

1. Department of Expenditure. (n.d.). Fifteenth Finance Commission guidelines and related documents. Government of India. https://doe.gov.in/15th-finance-commission
2. Government of India. (1992). The Constitution (Seventy-third Amendment). Act,
1992. Legislative Department. https://www.legislative.gov.in/
3. Ministry of Panchayati Raj. (2025). Status of devolution to panchayats in states: An indicative evidence-based ranking, 2024. https://panchayat.gov.in/en/notice/devolution-index-report-2024/
4. Ministry of Panchayati Raj. (2026a). Central Finance Commissions’ reports related to rural local bodies. https://panchayat.gov.in/en/finance-commission/central-finance-commissions-reports-related-to-rural-local-bodies-rlbs/

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DR. UDAYAKUMAR L. DODDAMANI (2026). FISCAL DECENTRALISATION AND THE CAPACITY OF PANCHAYATI RAJ INSTITUTIONS IN INDIA. North Asian International Research Journal of Social Science & Humanities. DOI: https://doiglobal.org/10.2026/NAIRJCSSH.031

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