A Study of Fiscal Decentralization and Local Government Finance in India: Emerging Trends, Challenges, and Policy Implications

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1. Verfasser: Dr. Rajratna Laxmanrao Sontakke
Format: Recurso digital
Sprache:Englisch
Veröffentlicht: Zenodo 2026
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author Dr. Rajratna Laxmanrao Sontakke
author_facet Dr. Rajratna Laxmanrao Sontakke
contents <p><span>This study explores the current landscape of fiscal decentralization in India, with particular attention to<br>the financial structure and functioning of rural and urban local government bodies. It investigates the<br>composition and trends of own-source revenues versus intergovernmental transfers, the extent of fiscal<br>autonomy enjoyed by local institutions, and the institutional and policy challenges that hinder effective<br>devolution of financial powers. Drawing upon secondary data, government reports, and existing scholarly<br>research, the paper analyses persistent vertical and horizontal fiscal imbalances, variations across states, and<br>the implications of limited fiscal capacity on local governance and service delivery. Furthermore, the study<br>identifies critical policy gaps, administrative bottlenecks, and capacity constraints that undermine the objectives<br>of decentralized governance. It concludes by proposing strategic reforms to strengthen fiscal empowerment,<br>improve transparency and accountability, and enhance the overall effectiveness of India’s multi-tiered fiscal<br>framework</span> </p>
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language eng
publishDate 2026
publisher Zenodo
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spellingShingle A Study of Fiscal Decentralization and Local Government Finance in India: Emerging Trends, Challenges, and Policy Implications
Dr. Rajratna Laxmanrao Sontakke
<p><span>This study explores the current landscape of fiscal decentralization in India, with particular attention to<br>the financial structure and functioning of rural and urban local government bodies. It investigates the<br>composition and trends of own-source revenues versus intergovernmental transfers, the extent of fiscal<br>autonomy enjoyed by local institutions, and the institutional and policy challenges that hinder effective<br>devolution of financial powers. Drawing upon secondary data, government reports, and existing scholarly<br>research, the paper analyses persistent vertical and horizontal fiscal imbalances, variations across states, and<br>the implications of limited fiscal capacity on local governance and service delivery. Furthermore, the study<br>identifies critical policy gaps, administrative bottlenecks, and capacity constraints that undermine the objectives<br>of decentralized governance. It concludes by proposing strategic reforms to strengthen fiscal empowerment,<br>improve transparency and accountability, and enhance the overall effectiveness of India’s multi-tiered fiscal<br>framework</span> </p>
title A Study of Fiscal Decentralization and Local Government Finance in India: Emerging Trends, Challenges, and Policy Implications
url https://doi.org/10.5281/zenodo.18639046