How does the inability of local bodies to generate their own funds affect their ability to function effectively? Suggest necessary measures to empower local governments in generating independent revenues.

73rd & 74th Constitution Amendments were brought with an aim to strengthen local governance but their poor State of finance live them at mercy of centre & state. (Poor Finances of local bodies) (1) As per Economic Survey 2014-16, Panchayat collect only own revenue. (2) After PR, Municipalities hosting over 30% population, over 60% GDP, collect less 50%, their revenue. (3) this in-turn makes them mere implementer of centre, state balices.

Poor Finances => inability to function (1) local bodies rely on grants by Finance Commission & fund resources => grants are also tied (eg => million + city get growk on power reforms) (2) it increases influence of the state & national policies, at local devels => defeating bottom up ideg. (eg's: one size fits all in MGNREGA/POCL Vidness. (3) enablity to make quick respons during disasters eg - during COVID, many Panchayat lacked till some relief. (4) impacts the working of functions, limits finances for having (facility buildng)

Measures for empowerment (1) Introduction of the Municipal & Panchayat funds by viable local bodies. (2) Devolution of Powers by state governments under Schedule 11 & 12. (3) Implement Panchayat Committe recommendations & Common Ministry for local bodies & capacity building training. (4) Incentives by governments to local bodies on Meeting target. the initiatives like Sabjyojya Sakha vilas is step in this direction.