The key to effective decentralization is, 'political decentralization should follow finance and functional decentralization'. Discuss in the context of impediments faced by local governance in India.

Reforms required: 1) Development of municipal bond market to raise funds. 2) Participatory budgetary process. 3) Proper financial and social audit mechanisms to ensure accountability. 4) Sharing of 1/6th GST revenue by state and states. 5) Use of local resources to raise funds eg: common resources like ponds, tanks, forests etc. Challenges B Functions 1) Non-codified functions ⟹ discretionary actions ⟹ lapse in effective delivery 2) Overlapping jurisdiction with the state

governments ⟹ lack of will for devolution of functional autonomy. 3) Ineffective implementation of the panchayat extension to scheduled areas act, 1996 ⟹ tribal autonomy over minor forest produce, water and mineral resources etc. Reforms required: 1) Codification of function in time-bound delivery of services. 2) Audit of finances and functions by an auditor general ⟹ even stronger vetting & fund-holding & punishing. 3) Digitization & use of technology to better capacity building. 4) Increasing stakeholdership of the local resident eg: dairy development, agricultural exports, agro-food forestry to boost tourism etc.