In a move to bolster the evidence base for fiscal decentralisation in India, the government will unveil the Report of the Committee on Datasets for State Finance Commissions on Monday. Dr V Anantha Nageswaran, Chief Economic Advisor, will present the report alongside Vivek Bharadwaj, Secretary, Ministry of Panchayati Raj, and Dr Manish Gupta from the National Institute of Public Finance and Policy (NIPFP), among other officials. The report aims to enhance data availability, standardisation, and institutional capacity for fiscal analysis at the local level.
The launch event will feature a keynote address by the Chief Economic Advisor focusing on data-driven policymaking and evidence-based fiscal governance as crucial elements for empowered local self-government and inclusive development. The report provides a detailed overview of the essential datasets needed by State Finance Commissions and offers actionable recommendations to enhance data quality and interoperability.
According to an official statement, the report is anticipated to become a go-to resource for State Governments, State Finance Commissions, researchers, and advocates of democratic decentralisation and robust local public finance in India. State Finance Commissions, established under Article 243-I of the Constitution, play a vital role in assessing the financial status of Panchayati Raj Institutions and proposing financial resource allocation principles for local governments.
The Committee on Datasets for State Finance Commissions was formed in response to concerns raised during the Finance Commissions’ Conclave on Devolution to Development held in November 2024. The lack of comprehensive datasets across various departments and agencies was identified as a significant challenge impacting the quality and timeliness of State Finance Commission recommendations.
