In a move to enhance data-driven fiscal decentralisation and bolster grassroots governance, the Centre unveiled the Committee on Datasets for State Finance Commissions’ report. Chief Economic Advisor V. Anantha Nageswaran highlighted the crucial role of empowered Panchayats in delivering essential services like water supply and roads, emphasizing the significance of fiscal decentralisation in effective governance.
Nageswaran stressed the importance of reliable data for State Finance Commissions to make informed recommendations, linking better data to improved governance. The report’s focus on enhancing the information framework for local governance was underscored as a key step towards informed decision-making and strengthening fiscal decentralisation. Additionally, a call for a performance audit by the Comptroller and Auditor General to evaluate the 73rd Constitutional Amendment’s implementation across States was emphasized for reinforcing accountability.
Secretary of the Ministry of Panchayati Raj, Vivek Bharadwaj, highlighted the necessity of coordinated efforts between State and Central Finance Commissions. He emphasized the pivotal role of data in enhancing the quality and timeliness of recommendations. Bharadwaj also emphasized the importance of robust institutional reforms alongside financial transfers for sustainable decentralisation, aiming to improve evidence-based decision-making and fiscal devolution effectiveness.
