Driving Fiscal Autonomy: Empowering Local Bodies for Sustainable Development

The 16th Finance Commission's conclave, led by Chairman Arvind Panagariya, emphasizes empowering rural and urban local bodies to boost their own resources. Key discussions focus on fostering financial autonomy to ensure efficient resource allocation and addressing challenges in panchayat finances, thereby enhancing citizen engagement and service provision efficiency.

In a move to foster financial autonomy, the 16th Finance Commission Chairman, Arvind Panagariya, has urged rural and urban local bodies to focus on augmenting their own resources. Speaking at a Finance Commissions Conclave organized by the Ministry of Panchayati Raj on 'Devolution to Development', Panagariya highlighted the growing convergence in demands between urban and rural local bodies.

The conclave aimed at tackling systemic issues in fund allocation for Panchayati Raj Institutions, emphasized the importance of 'Own Source Revenues' (OSR) for sustainable development. Discussions revolved around effective strategies to enhance local revenue sources, while also underscoring the role of citizen awareness in service provision through taxation.

Featuring over 150 stakeholders from 22 states, the event highlighted challenges faced by peri-urban panchayats, and stressed the significance of strengthening State Finance Commissions. Meanwhile, Panchayati Raj Secretary Vivek Bharadwaj announced advancements in digitizing gram panchayats and integrating OSR into development plans, marking a stride towards greater fiscal transparency.

(With inputs from agencies.)