ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Augmentation of Panchayat Resources

Augmentation of Panchayat Resources Indira Rajaraman O P Bohra V S Renganathan Even if the new tier of local governance mandated by the 73rd Amendment is visualised merely as a shift in the point of delivery of certain functions previously discharged by higher levels of government, so that the problem of fiscal devolution simplifies to one of ensuring a fiscal transfer to match the functional transfer, there has to be some revenue additionality to cover incremental establishment costs. This is particularly so for the rural sector, and is the justification for the limited focus in this paper to panchayats alone. Hut if the intention is improved delivery, the need for additional revenues is even greater.

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