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 revenue streams.
Introduction
Local self government has been identified by NITI Aayog as indicator of true democracy at grassroots, but a crucial loophole remains - funding.
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Main Body
Inability & Effectiveness: 1) Inability to effect development plans at last mile (eg pucca roads, others) 2) Structure of revenue collection also in dothings (eg lack of tarable avenues) 3) Functional diversification nipped due to lesser financial might 4) Financial dependence leads of developmental dependence Peripheralisation of social/local area Impacts on public trust on Gram Panchayat/urban local bodies thus crippling their Political might and efficacy. eg Lack of access to state finance 6) Subordinate working of state Finance Commission hurried augmentation of financial resources there. Measures to accrue better autonomy: 1) State finance commission mandate for effective devolution: 2) Fixing of percentage by centre and state for monetary grants 3) Municipal financing innovation and best practices (eg Swedish gap funding) 4) Listing of local bodies as SPVs as under Smart cities Mission. 5) Advancing of INVITs and other financial instruments to democralic funding by public 6) Devolving tax collection powers to local bodies (eg entertainment tax, road tax) These steps can be taken, apart from a sound functional (formalisation derive at local body level to enfranchise true grassroots development.
Conclusion
These steps can be taken, apart from a sound functional formalisation drive at local body level to enfranchise true grassroots development.
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ZINNIA AURORA
Federal Structure - Functions, Responsibilities, Devolution of Powers and Finances
Local Self Government
Local Bodies Funding and Revenue Generation
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1
Paragraphs
formal
Tone