Secretary of the Ministry of Panchayati Raj Vivek Bharadwaj today highlighted the transformative role of Finance Commissions in strengthening local governance. Addressing the gathering after releasing the report on Datasets for State Finance Commissions, Mr Bharadwaj said the Ministry’s focus before the 16th Finance Commission was on strengthening governance rather than seeking additional funds.
He highlighted the Commission’s decision to provide an urbanisation premium of 10,000 crore rupees for peri-urban areas transitioning to urban local bodies. He also welcomed the reintroduction of 87,000 crore rupees in performance grants for panchayats. He said the grants will be linked to the ability of local bodies to increase their own revenue collections, encouraging them to become financially stronger and more self-reliant.
Speaking on the occasion, Chief Economic Adviser V. Anantha Nageswaran stressed the need for robust data systems to improve fiscal decentralisation and service delivery at the grassroots. He said the quality of life in rural India depends on how effectively panchayats deliver basic services such as water, roads and Anganwadis. He also underlined the importance of strengthening State Finance Commissions to improve governance and advance fiscal federalism.
