Question
Elaborate the Financial Resources of Panchayati Raj Institutions.
Answer :
Word Count : 1252
The financial resources of Panchayati Raj Institutions (PRIs) hold a crucial place in the functioning of decentralised governance in India. Decentralisation in a real sense requires that local governments are not only entrusted with powers of administration but are also provided with adequate financial resources to discharge their responsibilities effectively. Panchayati Raj, introduced as a constitutional mandate through the 73rd Amendment Act of 1992, was envisaged as a means to bring governance closer to the people, ensuring participatory democracy, equitable development, and accountability. However, the success of this vision depends largely upon the fiscal autonomy of Panchayati Raj Institutions, for without adequate funds even constitutionally mandated powers cannot be put into practice. Financial resources of PRIs are both internal and external. Internal resources are those which are mobilised by the Panchayats themselves, whereas external resources refer to transfers from state and central governments, often through grants, schemes, and revenue-sharing mechanisms. A balanced financial system is necessary to strengthen the autonomy of Panchayats and enable them to respond to local developmental needs. In practice, the dependence on external resources has been greater, and this has posed challenges to the ideal of fiscal federalism at the grassroots level. One of the most important internal financial resources of Panchayati Raj Institutions ________ ___ ________ ________ _____.
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The financial resources of Panchayati Raj Institutions (PRIs) hold a crucial place in the functioning of decentralised governance in India. Decentralisation in a real sense requires that local governments are not only entrusted with powers of administration but are also provided with adequate financial resources to discharge their responsibilities effectively. Panchayati Raj, introduced as a constitutional mandate through the 73rd Amendment Act of 1992, was envisaged as a means to bring governance closer to the people, ensuring participatory democracy, equitable development, and accountability. However, the success of this vision depends largely upon the fiscal autonomy of Panchayati Raj Institutions, for without adequate funds even constitutionally mandated powers cannot be put into practice. Financial resources of PRIs are both internal and external. Internal resources are those which are mobilised by the Panchayats themselves, whereas external resources refer to transfers from state and central governments, often through grants, schemes, and revenue-sharing mechanisms. A balanced financial system is necessary to strengthen the autonomy of Panchayats and enable them to respond to local developmental needs. In practice, the dependence on external resources has been greater, and this has posed challenges to the ideal of fiscal federalism at the grassroots level. One of the most important internal financial resources of Panchayati Raj Institutions ________ ___ ________ ________ _____.
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