Financial decentralisation refers to the distribution of financial responsibilities from central to local governments. It empowers local authorities to manage their budgets. This approach can enhance accountability and efficiency. Local governments can tailor services to community needs. It encourages citizen participation in decision-making. However, challenges include disparities in resource allocation. Effective implementation is crucial for achieving desired outcomes.
The Fifteenth Finance Commission has brought into light the importance of State Finance Commissions (SFCs) in India. As of November 2023, all states, except Arunachal Pradesh, have established...
